Most people do not use their overseas holiday home for more than 13 weeks each year, yet have to pay maintenance and charges for the full 52 weeks of the year.
Already very popular in the American holiday property market, 'Fractional Ownership' is offering an exciting new possibility to buy a luxury, superior property, furnished to a high standard, in a prime location abroad. In addition to this your property in Bulgaria is managed so that when you arrive at your property it is clean, the beds are made, fresh towels, fridge full, grass cut and the pool is ready for use.
As property values continue to rise across the world the possibility of buying a fraction of an overseas holiday property (normally a quarter share) is becoming an increasingly popular option for the overseas property buyer

UK Buyers follow global trend of affordable, second home ownership
Indications from clients and enquirers confirm that this method of shared ownership will see as many as 20% of second home owners preferring to purchase, and have a deeded ownership shared investment in a luxury property that would otherwise be way beyond their budget.

Fractional Ownership is not the same as timeshare
What is the major difference?
Timeshare - paying large sums of money to have a share of a period of time, normally one or two weeks per year in an overseas holiday property - has got its industry ‘dark cloud’ hanging over it. In practice, so many bad experiences have tarnished this way of holiday home use.

You are the sole owner of your fractional share of the property.
Occupancy rights are shared by each owner, normally 13 weeks spread throughout the year, in one month periods (see below for full details).

Each owner (normally 4) in addition to ownership has the right to gain from the increased market value of the property over the years and is able to sell their share at market value at anytime. If another owner defaults on any payments the bank does not have any access to your share.

Now that makes sense, economically and personally. Bearing in mind most of us are not able to take 13 weeks* (3 months) holiday a year, fractional ownership is a very practical way of owning your overseas holiday home, giving you the choice of the best of everything at a fraction of the cost.

* The average time spent in a second home is around 17 days

• You own a share of your property.
• You benefit from a share of the increased value of the property.
• You are able to buy a larger property in a better location.
• Property is managed. No worries about upkeep and cleanliness.
• You can change occupancy times to suit your own lifestyle.
• All maintenance costs and service charges are shared between owners.
• You have 13 weeks per year for your personal use.

'Enabling you to buy a fantastic holiday home abroad that would normally
be beyond your budget’ *see example below

‘If you recognise that owning a property outright but only being able to
use it for 10 weeks of the year does not make economic sense.’

If you would like to test foreign holiday home ownership before making a larger investment.’

‘For those who see fractional ownership as a great way to grow their property portfolio with a reduced financial exposure.’

No economic pressure to need to let the property out during the year, keeping your property in tip top condition free from expensive ‘wear and tear’ repair and maintenance costs.’

Giving you the lifestyle holiday you want in your own home without the chore of having to spend your well earned holiday maintaining, cleaning and worrying.’
Financially it makes good sense.

A shared rotation scheme allows all 4 owners to have exclusive use of the property, experiencing every month of the year over a 4 year period. Each year the 3 monthly periods rotate so that you have an equal and evenly distributed share of occupancy every year. Of course, each of the owners are in contact with each other and there is the option to exchange periods between themselves.

Fractional ownership title allows a limited number of shareholders to privately own a high class, luxury furnished residence using it freely for set periods throughout each year at a cost lower than the outright purchase.

Important Note:
Fractional ownership only really works for high value, luxury property that is, for most of us, beyond our budget.

Fractional ownership also only really works best if the property is located where it can be used all year round and where it does NOT have a short ‘peak season’ of usage, like a seaside or a ski slope location where there is really only a few months of the year that the property is useable.

Most people who invest on their own in a high value property have to let out the property to try to get a holiday rental income to assist in the payment of the property loan/mortgage needed to purchase the property in the first place. Holiday letting has its own set of headaches: management, marketing, damage costs - to name but a few - have to be funded.

Fractional ownership does NOT have the need for rental income. The property is used exclusively by the 4 owners throughout the year and in this way the property remains in a tip top condition as it is highly respected by all 4 owners.

As the purchase levels for a ‘fractional’ are so much lower than that of a normal individual purchase the need for rental income is eliminated. However if you, as an owner, wish to let out your property during your periods of occupancy, this is absolutely fine, you will receive a small, although not essential income, and the property is in use during your occupancy periods.

FRACTIONAL OWNERSHIP, A SIMPLE EXAMPLE:
	Market price of this luxury farmhouse with 4 bedrooms, study and garden. Fully furnished and professionally managed throughout the year: €360,000 You pay only €90,000 as a shared owner

A The property should be of high quality, three or more bedrooms and with the design that works in the winter and in summer.
Located so that it has the potential for a 4 season use throughout the year.
Near to amenities and attractions so that you can enjoy a wide range of activities at any time during the year. Rural locations are the best as the property is not dependent on short beach or ski seasons.

A Normally the purchase price includes buying a share in the property (25%) and gives you the rights and ownership of the deeds. The price also includes the rights of periods, normally 1 month per season, throughout the year for a annual period of 3 months. If you decide to sell your interest in the property (your share) the property does not have to be sold in the normal way. You sell only your share and make your profit from the increased value.

A The professional management company who manage the property or small resort will manage all aspects of your property. Security, maintenance, cleaning, upkeep, management of occupancy, legal and all service payments.

You pay an annual fee to cover this management. Of course it is a shared cost between the 4 owners so is 75% less than you would normally have to pay.

You will also pay an annual payment into a fund that will eventually replace all the furniture and appliances in the property at the end of a 4/5 year period.

A Selling your share of the property is a simple exercise. Normally you are able to sell to your immediate family, secondly, if this is not a choice, the other shareholders of the property will have first refusal to buy your share value.

If this is not the case then the share will be offered on the open market.

The management company will manage this sale and will offer your shares to the pool of buyers awaiting the opportunity to own a share.

You will receive your original investment plus the increase in the selling price.

Any fees or annual management fees will be calculated and apportioned at the point of the sale of your shares to the new buyer.

A The security in any property investment is dependent on the marketplace and the immediate value of property in the location. Property that gains value in the market is normally the higher value, higher quality and better located.

Fractional Ownership property fits this model. This, together with your legal security of owning a share of the property, makes Fractional Ownership very secure. At the end of a 4/5 year period the property is completely refitted and placed back onto the market for re-sale of each of the shares. Unless of course, the shareholders wish to continue with their share ownership, in this case the property remains with the same owners and the contract of occupancy continues its cycle.

A Normally you can use you property as much as you like within the months that are yours during each season of the year. If you are not able to take enough time off then your property is available for anyone you know to use. Gaining a rental income during this time is, of course, a bonus.

You are also able to 'swap' occupancy times with other shareholders, giving you a great deal of flexibility during the year to get best use of your property to suit you personal needs.

A Yes. The property is designed with storage for personal belongings and items of monetary or sentimental value.

A All legal and service bills are covered by an annual fee that each shareholder pays to the management company.
Each individual occupancy usage is calculated at the end of the period and logged.
For example there will be a greater usage of electric during the winter months, however if you choose to NOT use your occupancy period during that time the property will have used only a minimal service during that period.

A After a period of 4 or 5 years (dependent on the contract between shareholders and the management company), all appliances will be replaced for new. It is at this point that the property is (in theory) placed back on the market for resale 'as new', unless of course the shareholders choose to keep their property share.

Any damaged items or miss use of the property will be reported at the end of each occupancy period and the shareholder or person responsible will be liable for the full cost of damage repair/replacement.