Many dream of owning their own holiday home on the Costa del Sol with its exceptional weather of more than 320 days of sunshine per year, and who can fault them?
The western Costa del Sol has the infrastructure, road and rail links, frequent cheap flights to Malaga, dozens of golf courses, multiple leisure and sports facilities, beaches, water sports, sightseeing excursions to modern cities or typical white villages, all combine to make this the best all year round destination in Europe for holiday makers tourists and golfers alike.
But quality properties in prime locations on the Costa del Sol and it's Golf courses are not cheap.

Fractional ownership provides a cost effective solution.
For 25% of the cost, you own 25% of the property which entitles you to 3 months use per year.
Why buy a whole property if you will only use it for holidays?

Fractional Ownership is not "Time Share"
Fractional ownership is not time share, In timeshare developments, a buyer purchases time without ownership - so the owner does not benefit as the value of the property increases.
In fractional ownership, owners physically own their fraction of a property which can be mortgaged, sold or transferred.
When property values increase so does the value of your fraction.

Just some advantages of buying a fraction.
The possibility to buy part of a luxury property that would otherwise be beyond your reach.
The possibility to own 2 properties in 2 different resorts for half the cost of a whole one.
On a 25% fraction [3 months use per year] you would pay:
Low purchase costs
25% of the decorating and furnishing cost
25% of the running and maintenance costs
Low selling costs

There are two approved methods which enable owners to purchase fractions safely.

[Method 1] Owners purchase a property directly together with all their names appearing on the title deed or escritura, which can have an annex or common agreement to determine the terms of use, rights and responsibilities of each co-owner.

[Method 2] Owners purchase shares in the company that owns the property, typically a 25% shareholder owns 25% of the property. A new company is set up for each individual property, for instance "Apartment 1 sunny beach Ltd."
The company can be a UK Ltd. or Spanish SL company
The co-owners should be the only shareholders. Rules and regulations in the contract cover all legal concerns regarding rights of use and responsibilities of each co-owner.

These are the only 2 Methods for true fractional ownership, other schemes, times shares, holiday clubs or property clubs are not.

Which option is best for you?

Method 1 is suitable for family members, friends or groups who want to purchase a property together
We can arrange fractional ownership for any freehold property on the western Costa del Sol, be it an apartment, townhouse, villa or finca.
Fractions can be a half, a third or one quarter, in conjunction with your lawyer we can draw up a common agreement to meet your individual requirements.
It is up to the co-owners to decide how they want to organise the finishing, decoration, furnishing, maintenance, cleaning and laundry for the property, as well as the payment of community fees, water, electricity and local taxes, a joint Spanish bank account is usually the best option, which we can arrange for you.
A mortgage can be taken on the property by one or more co-owners, but beware that the mortgage will be on the whole property, so all co-owners will be affected in the case that one co-owner defaults, if this or any of the above is a worry for you, then option 2 is the one for you.

Method 2 Is suitable for everybody, especially people who want to purchase a fraction on their own, and need to find other co-owners for a property.
Each fraction can be individually mortgaged in a way that will not affect any of the other co-owners should one co-owner default.
Such properties are professionally decorated, furnished and managed, so all the co-owner has to do is arrive with the suitcases and relax.
Luxury apartments on Golf courses are ideal for Golfers, a Golf membership for all owners can be included.

Using your fraction
Generally the use of the property is controlled by a calendar, with equal blocks of time, of usually one month being allocated to each owner. Typically every year the periods of use retreat by one month, so after 4 years [based on a 25% share] the rotation is complete, with each owner enjoying all seasons equally.
If you are unable to use all your allocated time, you can rent out the balance to friends, family, other co-owners or through the management company.
Meanwhile, the in house management team look after the cleaning, laundry, administration and maintenance of your property allowing you complete peace of mind and enabling you to relax.

Selling your fraction
The common agreement or sales contract typically gives each co-owner the first right of refusal if one of the co-owners wants to sell. Options include selling your fraction to other co-owners at market value, selling via the managements company or putting it on the open real estate market.
New purchasers would be bound by the same rules and conditions as the other co-owners

Rules and regulations
There should be rules and regulations to cover every conceivable event in the Common agreement or sales contract, which are legal documents that formalise all legal concerns regarding rights and responsibilities of each co-owner.
It is created and approved before the purchase and should cover everything from purpose of ownership, management arrangements, seasonal requirements, rental revenues, property maintenance, repairs and replacements, furniture renewal, bank accounts used, payment of expenses, payment default, selling, transfer of interests and right of first refusal when selling etc.
If everything is covered in the agreement or contract there can't be any problems for the owners.

Contact us if you have any questions

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