The scheme will allow up to four buyers to own a share of a property, with purchasers entitled to use it for up to three months of the year on a rotational basis. During this time, investors can occupy the property or let it out.
Unlike a timeshare, investors will be able to benefit from any increase in the value of the property. Shareholdings form part of each owner’s estate and can be passed as part of their will or sold at any time.
The Assetz Fractional Ownership portfolio is comprised of freehold or occasionally long leasehold properties, with title deeds registered at the relevant country’s land registry.
Stuart Law, chief executive of Assetz, commented: “The initial financial outlay, along with annual running costs can be hard to justify on a property that will only be used occasionally during the year. As a result, we have launched Assetz Fractional Ownership.
“By offering a whole package, taking responsibility for the sourcing of properties and investors’ due diligence through to the full maintenance and the allocation of time slots, we have removed all of the risks, making second home ownership a reality for thousands of potential buyers currently constrained by budget or a fear of risk.”
Simon Conn, managing director of Conti Financial Services, said: “This is a very good and growing market, and gives better security than a timeshare. The problem is funding, as lots of lenders won’t fund fractional ownership and it can be difficult. But it’s a good starting point for first-time buyers and those looking to buy property overseas.”
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