Frequently Asked Questions on Fractional Property

1. What is an Assetz Fractional Ownership?

When you purchase an Assetz Fractional Ownership property you become the owner of typically one quarter of a fully furnished, luxury holiday home complete with top-class amenities and services.  Your purchase entitles you use of the property for up to three months a year on a rotational basis (during which you can either occupy the property or rent it out).  Assetz Fractional Ownership is a form of fractional freehold ownership.  It is equity ownership not timeshare, therefore you stand to benefit from any increase in the value of your property. 

2. But isn’t this just timeshare?

No.  The key difference between timeshare and Assetz Fractional Ownership is that timeshare is simply the purchase of time in a resort.  As an Assetz Fractional Ownership owner you purchase a quarter of the freehold (or sometimes long leasehold) of a property, so you own an asset that may increase in value, may be sold and may be passed on to future generations. 

3. Is fractional ownership a new concept?

No.  The concept of shared equity ownership originated in the USA and was first used for the purchase of corporate jets.  The concept was simple to transfer to property and lends itself perfectly to the holiday home market. Assetz has created a sophisticated and safe legal structure, typically through a UK company, in conjunction with an expert European legal firm with over five years practical experience of fractional ownership.

4. What services might I expect from Assetz Fractional Ownership ?

All Assetz Fractional Ownership properties have luxurious amenities and services and are fully managed by the very best local management companies.  Amenities vary from location to location but usually include;

• full gardening and pool maintenance service, if applicable
• changeover and cleaning service between owner visits
• regular property inspection
• property maintenance and repairs service
• some properties include resort services such as room service, maid service and catering

5. Are there any rules and regulations in place on the property?

Yes, there is a full set of Rules and Regulations which will form part of the main contract (your “Agreement for Sale”) and will cover, for example, maximum occupancy rules (to ensure that wear and tear on the property and its contents is fair to all owners) and details of the sinking fund which is in place.

6. What is the sinking fund for?

Assetz Fractional Ownership owners are required to contribute to a sinking fund which is in place to cover general wear and tear on the property, for example the replacement of furniture, equipment, refurbishment and interior re-painting, in order to keep the property in excellent condition at all times.  The sinking fund is co-ordinated by the management company responsible for your property.

7. How do I know when I can stay in my property?

Your Assetz Fractional Ownership purchase corresponds with a colour on the rotational chart which forms part of the rules and regulations of the property (as mentioned in question 6).  Each colour is allocated three separate calendar months of the year and this rotates, for example if your colour is assigned January this year you will also have May and September.  Therefore over a four year period you will have been allocated occupation of your property in every month of the year. Owners are at liberty to exchange weeks between themselves via a secure online forum.

Our typical chart indicates a simple style of occupancy allocation between four owners. For example: - in YEAR 1 your property will be available to you in January, May and September in YEAR 2 you will return in April, August and December; and so on in perpetuity.

The Assetz Fractional Ownership scheme enables you to have exclusive use of your property for three months of each year as shown above. This gives you the opportunity of experiencing every month of the year over a four-year period.

 

8. Where can I buy an Assetz Fractional Ownership property?

Assetz Fractional Ownership properties are currently available in most of the prime UK tourist areas including Devon, Cornwall, Cotswolds, Lake District, North Wales, Norfolk and many more. In addition we have properties available in France, Cape Verde, Portugal and several more countries being released shortly.

9. Can I buy more than one Assetz Fractional Ownership Share?

Yes.  You may buy as many Assetz Fractional Ownership shares as you like.  For example you may prefer to purchase two quarter shares to enable you to use your property for six months of the year instead of the usual three.  Also, if one of your co-owners decides to sell their share they are obliged to offer it to you before it is placed on the open market, providing you with a unique opportunity to increase your interest in your own property at a later date. Another benefit is being able to own shares in two very different properties in different regions or countries for considerably less than the cost of owning a single equivalent property in full.

10. How can I be sure that my co-owners are of an honest and trustworthy nature?

All new members are required to complete a due diligence questionnaire and provide certain verification documents (such as a certified passport copy).  The questionnaire seeks to verify that the individual completing it has not committed criminal offences and has not been bankrupt.

Furthermore, the contract is a highly comprehensive document containing numerous clauses that have been put in place to protect you from every conceivable eventuality which may cause conflict between you and your co-owners.

11. Why should I buy an Assetz Fractional Ownership property instead of a wholly-owned holiday home?

Research has shown that on average, holiday home owners spend approximately eight weeks a year in their property.  This means that properties are often left unoccupied for long periods of time usually at the expense and inconvenience of the owner.  By comparison an Assetz Fractional Ownership purchase is far more practical and makes sound economic sense.  You are buying into a fully furnished, managed property therefore it is a hassle free way of owning a holiday home.  Running costs are shared, therefore kept to a minimum.  Also, because you are going to be spending a fraction of what it would cost to purchase a property outright you will be able to consider far larger, more luxurious properties.

12. Can I sell my Assetz Fractional Ownership property share at any time?

Yes.  Your Assetz Fractional Ownership share may be sold at any time and a realistic return can be expected.  Owners are obliged to offer their Assetz Fractional Ownership share to the other owners at the agreed sales price before they can place it on the open market.  There is a clear procedure in place for Assetz Fractional Ownership re-sales. The process is fully managed for you and because there are no individual legal fees, costs are kept to a minimum including usually avoiding the large stamp duty and legal costs involved in selling a property directly.

Take time to view our UK and International properties or see how the Assetz Fractional Ownership system works . Then call us and take us up on the offer of a part share in some of the best holiday property there is.