Holiday Home Seekers
Shared ownership allows you to own legal title on a shared property abroad with minimal outlay and maximum gain.
If you only plan to use your holiday home for a few weeks or months of the year due to work commitments, etc., then it makes financial sense to invest in a shared property with say, three others and share the annual costs. It is a good stepping stone to buying a property abroad outright by committing to a much reduced financial outlay, experience less concerns, enjoy holidays with your family in your own home, and still have an equal share in any future capital growth.
Even in the present financial climate, shared ownership provides the ideal vehicle to profit from current investment opportunities, get on the property ladder, and enjoy holidays in your own holiday home.
Fractional or shared-ownership began in the U.S., the Caribbean and now is increasingly popular in Europe. Surveys have concluded that most outright owners spend between 6-8 weeks per year in their overseas property, but have to pay costs (rates, insurance, utilities, maintenance, periodic repainting of exterior & interior etc.), for the full 52 weeks each and every year. If you use your holiday home for a few weeks or months of the year then it makes financial sense to invest in a shared property with like minded people, fellow golfers, family or friends.
The procedure for shared ownership is similar to sole purchase except for the additional pre-signed shared-ownership agreement. This legal agreement records the intentions and purposes of the co-owners and the details of the property being purchased, details and procedures including occupancy schedules, responsibilities to each co-owner in maintaining occupancy standards, and procedures for selling shares in the future. It gives each co-owner peace of mind that their investment is always in good hands. The whole purchasing procedure is handled by fully indemnified British and International lawyers who ensure all procedures and payments are legal and secure. You should also seek advice from an IFA and your own Solicitor who can be consulted during the buying process.
Unlike timeshare true shared ownership schemes mean that you physically own a percentage of the asset and share title until the point of sale.
An occupancy schedule within the pre–sale agreement ensures that over a 4 year cycle each co-owner enjoys all the seasons equally. Co-owners can and do interchange their entitlement by agreement ie swapping a week or two in a year to satisfy their particular holiday plans. Shared ownership has the benefit of ensuring a property is not left empty for weeks/months at a time.
shared-ownership combines the best elements of timeshare and outright purchase by entitling individuals to a specific amount of time using the property each year, whilst also letting them participate fully in the long-term value-growth of their property over time.
A more luxurious, ideally located property than you could comfortably financially commit to purchase outright will be a lot less than you think; the annual costs will be substantially less, but you still have a “bricks and mortar” investment and still retain a spirit of privacy in your second home.
Our pre sale shared ownership agreement gives co-owners complete peace of mind in knowing that each of their own interests are legally protected and secure. This legal document records the intentions and purposes of the co-owners and the details of the property to be purchased, procedures including occupancy schedules, and responsibilities to each share owner in maintaining occupancy standards. The agreement includes procedures should a share owner wish to sell their share, providing other share owners have first refusal (called a pre-emption right) to purchase the share before putting it on the open market. The property value is assessed towards the end of each year at the annual meeting so if a co-owner wishes to sell their share during the following year the price is already agreed. It can include a pre-sale condition that at a future date (between 5 and 10 years) the property will be offered for sale to realize each co-owners investment. This of course can subsequently be changed providing all parties are in agreement during this time. A local Management Company will be appointed to maintain the property and the co-owners will agree whether to continue with the appointed Company each year at the annual meeting. The duties of the managing agent may include ensuring that the property is insured, kept in good repair and well-maintained, making suitable arrangements for cleaning, changeovers, etc.
