Fractional Ownership is an investment approach whereby the cost of an asset is split between several individual shareholders rather just one sole owner. This is a concept that has previously been very popular with luxury cars, aircraft or boats, but in recent years has rapidly gained attention and traction in real estate, particularly holiday homes.

Although similar to a timeshare, Fractional Ownership offers better security and investment return as you’re purchasing a deeded share of a freehold property and are entitled to use the property for a defined period each year. The greater the share you purchase the longer period of time you will have throughout the year to use.

Although they are very similar concepts and both allow you to enjoy a property for certain periods throughout the year, there is one major difference between them.

A timeshare is simply purchasing the right to use a property for a given time frame, whereas Fractional Ownership is actually purchasing shares of a property.

Lifestyle. Fractional Ownership gives you the chance to own a portion of one or more properties in prime locations that might otherwise be outside your financial reach. With all the costs being shared you can enjoy a high-end luxury property without breaking the bank. You could have shares in a Caribbean Condo, a French Ski-Chalet, a Mountain Cabin… all for a fraction of the cost!

Low Maintenance Costs. As you share ownership, all maintenance costs are also shared, this could include HOA fees, repairs, gardening, utilities, management fees and other expenses or subscriptions.

Rental Income. The time period that you own is yours to use how you wish, you can use it, leave it empty, lend it to your friends/family, or rent it for extra income!

Capital Appreciation. Fractional Ownership gives you a deed/share to a property title. This means that the value of your share in the property could increase if the property market grows, giving you capital appreciation.

Finance. Fractional Ownership in Real Estate is still a relatively new concept and many traditional banks are not aware of it, and therefore do not offer finance (by way of mortgages & loans). This means the most straight forward option is to purchase shares outright in cash.

Repeated Vacations. As with any holiday home (whether owned fractionally or outright), you’re tied to enjoying the same property/location every year instead of perhaps going to a different destination for each holiday.

Slow Selling. As you’re not selling the entire property (just a fraction/share), the audience is more limited than usual and therefore it could take a long time to find a buyer looking to purchase your share.

Once you have selected the right property and desired weeks you wish to purchase, a purchase agreement and promissory note is signed.

A 10% deposit is taken to secure your weeks while we discuss a suitable payment plan for the full funds (typically the full funds are paid within 30 days of signing).

Once paid, ownership certificates are issued and you are officially a Fractional Owner.

All due-diligence and compliance has been performed by the developer during the process of placing the share certificates/properties into the trust – First National Trustee Company (FNTC).

You’re welcome to have legal review of the contract/agreement, but it is not required for the transaction.

Yes, you are able to rent your Fractional Ownership.

Yes, purchasing Fractional Ownership is the perfect stepping stone to Full Ownership.

The amount paid for your Fractional Ownership can be used towards the purchase price of a new residence at the same resort.

Yes, you are able to sell, transfer, gift or will your Fractional Ownership at any time.

We’re happy to re-market your Fractional Ownership on your behalf, or you can use any agent/third-party website you prefer.

Owners often choose to change their Fractional Ownership to better reflect their needs, whether that’s to sell completely, or to trade-in for full ownership.

Note: There is an administration fee from FNTC (the trust) of approx. £150 per week when new share certificates are produced.

All ownership/share certificates are held by First National Trustee Company (FNTC). This is a third-party trustee that acts as the protectorate of the ownership in order to guarantee your right of ownership and management of the properties.

The trustee also assists owners in voting to replace the management company if needed.

This structure continues independent of the developer.

For Royal Westmoreland the month of September is blocked from any sales across Fractional Properties, ensuring that an annual maintenance sweep of all properties is carried out.

4 Seater golf buggies can be rented at US$175 per week.