Richard is looking to buy a second home in a rather luxurious resort. During his hunt, he keeps coming across the term “fractional ownership”. What exactly does this mean and what are the benefits and pitfalls of entering into this type of purchase?

Christian Broby, regional project director for Northern Europe at the private residence club 47 Park Street, says: Fractional ownership of holiday homes, also called private residence clubs, is a relatively new concept that allows you to enjoy four to 12 weeks of home ownership privileges a year at a luxury resort but at a fraction of the cost and without any of the hassles of home ownership.

Not only will you be sharing the property but you will also be sharing the acquisition costs and maintenance fees with others. The ownership is usually divided into quarters, eighths or 13ths, with each owner having an equivalent amount of time over the year to use it. The owners buy their shares from a management company, which handles maintenance and scheduling everyone’s time.

Most private residence clubs offer extensive amenities. These may include an extravagant clubhouse and spa, plus five-star hotel services — the kind that you couldn’t expect to have in a wholly owned vacation home.

If you have your sights set on one location that you are happy to go back to again and again, then a smaller company will best suit you. If, however, you would like to buy access to other locations then one of the bigger companies would be more suitable. For example, 47 Park Street has the only fractional ownership property in London, which is ideal for people who regularly visit London for business but are fed-up with hotels. There is also the possibility of swapping your residence time with affiliated hotels around the world.

Before committing to one of these schemes, I would check the company’s credentials and make sure that the scheme offers a clear get-out clause.



For further details on 47 Park Street, Mayfair, visit www.47parkstreet.com or telephone 020-7631 1000.

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