Fractional ownership allows co-investors to enjoy all the ownership benefits of luxury leisure properties whilst sharing the associated running costs. Usage rights typically associated with a owning your own holiday home are included, yet the on-going maintenance and management burden is taken care of by a dedicated management company. All running costs are shared according to shareholding status, making fractional ownership the ideal way to own and use your luxury leisure asset for the time you require each year.
In Fractional Ownership, typically each shareholder purchases a 1/13 equity share in a company which in turn owns the residence asset, each of the 13 shareholders will be entitled to 4 weeks or 28 days scheduled usage each year.
Fractional owners are usually permitted to rent out their un-used time and receive the income (minus the letting fee), as well formally exiting the syndication by selling their share, should the share be sold for more than it was purchased for then the shareholder will receive a capital gain on the balance.
General management and maintenance of the residence will be funded by a collective levy collected each levy due will be according to shareholding status.