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What is "fractional ownership"?
To be clear from the outset - this is NOT timehare. It is a freehold purchase by multiple purchasers just the same as if you purchased a property with family members or friends. The principles are identical. We put together a group of compatible investors who want to enjoy the use of a luxury property - enjoying their own private use of agreed weeks - but at a fraction of the total property price.
For example: we have a luxury ski chalet for sale at 800,000 euros. We decide that 4 investors wish to buy the chalet, therefore the purchase price for each investor is 800,000 divide 4 = 200,000 euros each. Each investor can use the chalet for 13 weeks per year either on a standard rotational basis or by agreement between the investors. For example - you can purchase the exclusive right to use the property at certain fixed times each year e.g Xmas, NY, Feb Half term. All running costs and rental income are shared.
We have completed numerous successful fractional purchases and can provide an independent management service after completion of the purchase if required. The maximum number we have worked with is 13 investors with 4 weeks each.
How the property is purchased?
An SCI company is formed - this is the most common method for non-resident investors to purchase property in France and has tax advantages. The company itself purchases the freehold of the property - each fractional owner owns a percentage of the shares in the company.
Management of the Property
This is by agreement between the owners themselves. There are no rules imposed on the owners but there are formulas that are tried and tested, such as a strict rotational system of ownership, or you purchase fixed weeks, such as Xmas / NY, Feb Half term, Easter etc.
UK Overseas can act as a central management system to manage the property, draft a management agreement and act as a point of reference. Equally if one owner is only interested in using summer weeks, the system can be adapted to suit any preferences. It can be as flexible or strict as the owners themselves decide. We are experienced in ensuring that compatible owners work together, and there are rules in place for all eventualities.
Maintenance & running costs
Each owner contributes to the running costs in accordance with the percentage of his share. A manager is appointed to look after all day-to-day matters on the property, with key-holding, linen, and cleaning services.
Funding the purchase
Cash purchase or we can arrange finance with a French bank.
Selling your investment
You can sell your share of the freehold at any time. Usually there are rules placed in the management agreement that you must offer your share to the other fractional owners first, and then after an agreed time if they decide not to purchase your share - you place your shares on the open market.
Because we choose only exceptional properties on exceptional locations to offer fractional ownership - all our shareholders have either sold at a profit (substantial in some cases), or have shares valued in excess of their purchase price. It is not uncommon for the total value of the shares to be worth more than the property as a whole.
For details of our current fractional ownership programs - please complete our Enquiry Form. Or click on these links below:
http://www.ukoverseas.com/propertydetail.aspx?property_pid=125469
http://www.ukoverseas.com/propertydetail.aspx?property_pid=80517
UK Overseas Limited
Please contact us for purchasing property in France & French Alps.
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