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F A Q - Fractional Freehold - the easiest and most affordable ways of owning property overseas.
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F.A.Q Frequently Asked Questions

Welcome to Factional Freeholds F.A.Q  We have listed below some of the most common questions we have been asked.  Click any of the questions below to learn more or click here to read more about the benefits of Fractional Freehold.

Question 1 - WHAT HAPPENS IF I WANT TO SELL MY SHARE?

Question 2 - HOW EASY IS IT TO RESELL A FRACTIONAL PROPERTY OWNERSHIP?

Question 3 - IS IT A FORM OF OR HOW DOES IT DIFFER FROM TIMESHARE?

Question 4 - DO FRACTIONAL PROPERTIES INCREASE IN PRICE COMPARED TO TRADITIONAL FREEHOLD HOMES?

Question 5 - ARE OWNERS ALLOWED TO LET PROPERTY DURING THEIR WEEKS AND WHAT RENT INCOME MIGHT BE EXPECTED?

Question 6 - CAN YOU RECOMMEND LAWYERS TO OVERSEE THE FRACTIONAL FREEHOLD OWNERSHIP CONVEYANCE?

Question 7 - CAN I FINANCE MY SHARE OF OWNERSHIP?

Question 8 - CAN I RESERVE MY OWNERSHIP SHARE?

Click any of the questions above to learn more or click here to read more about the benefits of Fractional Freehold.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

 
Welcome to Fractional Freehold FAQ - fractional-freehold.com
 

  • WHAT HAPPENS IF I WANT TO SELL MY SHARE?

Owners who decide to sell under the Shareholder Agreement must give first refusal to the other shareholders. This is part of Fractional Ownership. Many owners like to buy more time in their property and some will eventually wish to own it outright.For some Fractional Owners circumstances may change.

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  • HOW EASY IS IT TO RESELL A FRACTIONAL PROPERTY OWNERSHIP?

At the present time the process of re-selling a fraction as a product is relatively new although Luxury Yacht Owners have been doing this for a number of years, but if like the current interest in this product is huge, finding buyers will only become easier as the concept becomes accepted and more familiar.

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  • IS IT A FORM OF OR HOW DOES IT DIFFER FROM TIMESHARE?

Fractional Freehold Ownership does have similarities with timeshare but overall is more affordable and flexible whilst having capital growth. You are able to buy into virtually any type of property within your budget,anywhere. Timeshare is limited to managed resorts. With Fractional Freehold you get freehold rights so the share can be truly inherited.

Making decisions regarding the property and exchanging weeks is easy to do with co-owners. You will have details of all other Fractional Owners. The problem with timeshare is a degree of misunderstanding caused by a small percentage of oversold product and an over aggressive market. Fractional Ownership is a simple concept product.

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  • DO FRACTIONAL PROPERTIES INCREASE IN PRICE COMPARED TO TRADITIONAL FREEHOLD HOMES?

As the value of the property rises,so does the share price. As an owner you hold a share or shares in the company’s asset which is the property. Due to the affordability coupled with the supply and demand, the cost of all shares may well go up exceeding the full market value of the property.

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  • ARE OWNERS ALLOWED TO LET PROPERTY DURING THEIR WEEKS AND WHAT RENT INCOME MIGHT BE EXPECTED?

Owners can rent all or part of the time that they own. Rental income comes down to several factors,the season,type and size of property,location and the market.If someone is interested in rental potential then speaking to a local agent will evaluate your property. At the current time a healthy rental market exists due to low cost airlines and self holiday packages.  A three bedroom apartment in Marbella would earn between €1,000 to €1,800 per week in July/August-and this is being conservative.

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  • CAN YOU RECOMMEND LAWYERS TO OVERSEE THE FRACTIONAL FREEHOLD OWNERSHIP CONVEYANCE?

We have put together a network of lawyers who specialise in overseas property conveyancing with associates in each purchasing country. As the product is a freehold purchase one lawyer is needed to oversee the establishment of the Company and share distribution. Costs will be a share of the total costs as per a total freehold purchase.

Fractional Freehold Ownership is not to be confused with timeshare.Your share of the property is fully secured by a freehold title held in the countries land registry.

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  • CAN I FINANCE MY SHARE OF OWNERSHIP?

Yes. This is done by raising the share required against your own property,finance cannot be raised against your ownership share because you will then have a 3 rd party interest in the property which is not allowed under the shareholder agreement. Fractional Ownership is 100% secure.We can help by putting you in touch with a financial advisor.

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  • CAN I RESERVE MY OWNERSHIP SHARE?

Yes. A deposit of £1500 or €2200 will reserve your property share in a client account whilst the necessary preparation takes place for either the issue of your share certificate or the need to secure funds for your purchase.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE.

 

 

Fractional Freehold

If you are thinking about purchasing a holiday home abroad but can’t justify the full financial outlay, not to mention the annual running costs, then Fractional Freehold Ownership is the perfect solution.  The chances of finding cheap property overseas or justifying a luxurious villa is few and far between. Much of the world property market like the UK has seen prices rise steadily, with an ever increasing number of investors forcing up prices.

There is an alternative solution.   Fractional Freehold

Shared Ownership schemes are not new, they have been around for many years to purchase Luxury Private Jet Aircraft and Yachts, and now developers are looking to extend this concept to your dream home overseas.  Leading Lifestyle Magazine, Homes Overseas Magazine recent survey showed that outright owners on average tend to use their property for 4-12 weeks per year, yet they still had to bear the costs attached to 52 weeks ownership.

The benefits of Fractional Ownership are in the ability of matching your purchase with the expected use of your holiday home. This is not to be confused with timeshare. Fractional Ownership comes with a property deed to a UK Company and ownership of shares within that company. This unlike timeshare gives you a share of a true asset value as it will appreciate at the current property market rates.

If you decide not to use all or some of your allotted weeks in your share-a rental income can be obtained.

The Fractional Freehold concept is based around co-owners purchasing fractional shares by a twelfth, four seasons or quarter shares of Villas, Townhouses or Apartments that would otherwise have been sold outright.

In purchasing Fractional Freehold you can choose the right option for you, your family but also appealing to retired couples and young couples alike.

The occupancy can be divided equally over the calendar year so that you benefit from all seasons and even include all the school holidays!

In most shared ownership schemes a professional management company will look after your property, paying bills and maintaining the property, eliminating many of the headaches associated with ownership overseas.

As part of the UK Company set up a pre-signed Shareholders agreement will be in place detailing Procedures for the owners to abide by the rules to protect your investment and give you piece of mind.

All annual running costs are divided equally among the owners to cover administration, rates, utilities, insurance, periodic external painting and maintenance of pools and communal areas while a sinking fund provides for refurbishment of the interior of the property assuring you that it will always be maintained to a first class standard over the life of ownership.

Property experts give Fractional Freehold Ownership the thumbs up.

 

 
 
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More information...
Fractional Freehold has teamed up with Taxcafe to bring you a variety of useful resources to help you pay less capital gains tax, inheritance tax & other taxes.  Click any of the images below to visit our online Tax Bookshop -

Non Resident and Offshore Tax Planning     How to Profit from Off-Plan Property     Using a Property Company to Save Tax     The Worlds Best Tax Havens

 

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Fractional Freehold - easy and affordable overseas properties - Luxury Ownership for a Fraction of the cost - Fractional Ownership of Overseas Property from Fractional Freehold, call one of our experienced team members on +44 (0)1538 75 62 00
If you are thinking about purchasing a holiday home abroad but can’t justify the full financial outlay, not to mention the annual running costs, then Fractional Freehold Ownership is the perfect solution.