FAQs On Co-Ownership Properties

Why Pay Full Price For Part Time Use
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We appreciate you might have plenty of questions about how the co-ownership works. Hopefully you will find many of your answers here. if you are looking for a particular location or type of property, take our questionaire here. Contact us if you have any more questions as we are here to help. Depending on the fractional ownership partner, some of these FAQs/replies can vary slightly. Contact us for more info.

Buying A Co-Ownership Property FAQs

Also called fractional ownership, it allows you to buy a share of your second home with other similarly-minded co-owners (also relatives or friends can be an excellent solution to acquire a maximum of parts) through a company holding 100% of the property deed (you can buy between one and four parts). A professional company is then in charge of managing the property on the co-owners behalf.

Each part (when 1/8th) allows you to stay in your second home 44 days a year (1.5 months). You can buy more shares and multiple the amount of stays in your home. The house management company in place manages relations between the owners, the maintenance, cleaning and rentals in your absence.

  • You buy a premium property at a fraction of the cost.
  • The renovation and furniture upgrade is included in the price of the part.
  • You split the maintenance, running costs and taxes equally and pay only your part.

A virtual or/and physical visits to each of the properties on sale can be organised of course.

One could say that co-ownership and time-sharing allow as many people as possible to access the dream of a premium second home. The comparison ends there.

Timesharing is just what it is, that is that in the end, you only just own time and no real estate!

The solution and service offered by co-ownership allow you, unlike time-sharing:

  • To actually own (via a company) a property asset and not just the right to use is (or time…).
  • They say it is all about location, location so you can choose carefully any property on the real estate markets.
  • To keep control of the service charges and protect you from a possible bad-paying co-owner thanks to an innovative French law contract.
  • To benefit in a flexible way (and not a fixed week) from the enjoyment of your property (from as little as 2 or 3 nights in general)
  •  To benefit from a turnkey concierge, maintenance and upkeep service, in order to generate additional income without doing anything when you are not enjoying your second home.

Yes, you own fractions of the home through a locally created limited company which is registered for the
sole purpose of purchasing the home.

Yes. Owners can use a limited company or use their legal name to purchase a share of the property. However, this can affect how they can use and stay in their home. In France for example legally you should pay your company to stay in the home. It can also affect how the rental income is taxed. Best is to contact us for more info.

The exact type of company that holds the property depends on the country; for example, in France it is an SCI (also SCIA, SCI d’attribution). In Spain, often an SL (Sociedad Limitada), and in the UK a Limited company. These limited companies are a unified front that represent and protect a group of buyers. Each limited company has its own bank account, tax ID number and holds 100% of the deed of the home. No-one else holds shares in that company apartment from the co-owners. These companies have been used by family relatives and friends to hold properties for decades so it is nothing new under the sun.

The purchase cycle of a property fractional share on the market usually takes from 2 weeks to 3 months. The buying process of a house depends on how many buyers there are and how many fractions each owner gets. the actual buying of the share is very quick and just a matter of days. When a mortgage is required it takes a few months.

In Spain we have some partners who can help you finance your share with a Spanish mortgage. Contact us for more info.

You can purchase up to 50% of the home, the equivalent of four shares. Shares are very often sold in ⅛ ownership portions (please check with us as this can vary sometimes). Each share allows you to use the home exclusively for 44 days each year. Usually, you can buy between 1 and 4 shares of the same property, depending on the number of days you wish to stay there per year and your budget (1 share = 44 days, 2 shares = 88 days, 3 shares = 132 days, 4 shares = 176 days). Why four shares maximum? To avoid having a majority shareholder (always a minimum of two shareholders in the company) who alone could influence all the decisions of the company. On the other hand, you can buy as many shares as you want in other properties.

Of course, acquiring a second home can be done with loved ones, family or friends! This is how the system of co-ownership started: friends or members of the same family buying a property together through a company. The main advantage of our system is that it is professionally managed, thus eliminating the potential problems arising from managing a property with relatives or friends. 

You are more than welcome to do it. Friends, colleagues…We want you to share your home with like minded people,
so if you already share the mindset with others, let’s make sure to spread the joy. And the good thing is that if, at some point, your relationship with these people breaks down, the professional management removes all emotional links and you do not have to deal with them directly!

Yes, it is fine to buy a second home share via an SCI as a foreigner or non-resident as it is to buy the whole property.

For example in France, for Tax: you will be liable for the wealth tax (IFI) if the net amount of your real estate assets in France is greater than 1,300,000 euros (which of course co-ownership mitigates greatly). You will have to declare in France any rental income generated by the rental of your second home. You can also be taxed in your country of residence on the difference already paid in France or Spain (UK for example has a double treaty agreement in place even after Brexit).

Of course, when you book a stay in your property, you obviously enjoy the entirety of the property (show-offs can even post on Insta from their provencal country pile or Chalet in the Alps…LOL). The other owners will enjoy the property during the stays they have reserved. In other words, you will never stay in your property at the same time as the other co-owners. On the other hand, you can of course invite relatives/friends when you stay in your second home or have them stay on their own.

It all depends on how you fund your purchase! Once your funds are ready, you can enjoy your property as soon as your part is created. It takes between 2-3 weeks in general. If renovation work is planned, often the purchase of share(s) takes place once the renovation has been completed.

Of course, it is like purchasing any traditional property. In France, for example, it is 14 days.

The house is fully furnished and decorated by the interior designers, and equipped with everything you need on a daily basis: crockery, sheets, towels, bath products…ready to be used like any home or rented out to generate income.

When you buy a second home share through an SCI, you also buy the furniture that makes up the property. You therefore indirectly hold 1/8th of the value of the furniture and equipment in the house if you own one 1/8th share and proportionally if you own more.e or rented out to generate income.

Yes we will. We work with a solid network of real estate professionals and potential clients so we will make sure to select the right group for you and your home.

FAQs: using your co-ownership property click here

FAQs: Selling your co-ownership property click here

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