1. What Is Fractional Ownership?
Fractional Ownership is a way to enjoy the benefits of owning a luxurious holiday home at a fraction of the cost of buying a holiday home outright. Fractional Ownership allows you to increase your buying power and significantly reduce the cost of running your holiday home.
80% of holiday home owners spend less than one month of the year at their second home.
The idea of Fractional Ownership is simple; it allows you to buy a second holiday home which one might use for a few weeks a year, but by pooling resources with like-minded owners, you can share the expenses and share the lifestyle. Fractional ownership enables you to maximize the size, location, and quality of your property investment while minimizing the investment.
Exclusive lifetime occupancy without any of the headaches.
Each share (Fraction) gives you exclusive lifetime occupancy without any of the headaches or management associated with direct ownership. It enables you to minimize your ongoing expenses while allowing you to re-market the shares as your needs may change.
With Fractional Ownership you own a share of the property and therefore, as the property appreciates in value, so does your share. The property is owned by you and your fellow members, and is operated exclusively for your enjoyment. Title to the estate is held in perpetuity by a UK based limited company for the benefit of the owners. An additional advantage of Fractional Ownership is that the purchaser is not required to deal with any of the legal complexities of ownership in Italy. As with other real estate, ownership may be sold, willed, transferred or placed in a trust at any time.
2. What is the difference between “Fractional Ownership”, “Co-Ownership” and “Shared Ownership”?
The above terms can describe any arrangement whereby two or more people share ownership of something, whether or not they share usage. Fractional ownership seems to be emerging as the one most commonly used for time-based sharing of holiday real estate in the U.S., but co-ownership and shared ownership are often used to describe these arrangements in other English-speaking countries. In Italy the term frequently used is “Multi-Proprietà”.
3. What are the annual costs, and do they include maintenance?
Each of the Fractional Owners of Casa Marzana are required to pay an annual service fee which is calculated on the total running costs of the property and is divided equally between the owners. This reduces the liability you have for the running of the property, and you arrive ready to start your holiday immediately without the thought of wondering what maintenance is required.
The annual service fee includes the following:
›Local Property taxes
›Maintenance of the property including pool cleaning, gardening, general maintenance
›Company legal and accounting fees
›Insurances such as building and contents, third party
›Capital Reserves (such as sinking fund, replacement costs, etc)
›Housekeeping (handover cleaning, towel and linen changes)
Any and all expenses can be reviewed by the owners, and will be charged on an actual cost basis. Any difference in expenditure will be charged or refunded when the company accounts are finalised at the end of the financial year.
4. Who will maintain the property?
The Founding Members (Owners), David Malloch and Winnifred Rosser will reside full-time in their apartment on the property and provide and/or oversee the complete maintenance of the property in collaboration with the Members (Fractional Owners).
5. Is the Building Completed?
The property is located on the ground floor of a palazzo (apartment block) which consists of an apartment on each of the three floors. Built in the late 1980s the apartment is undergoing some renovations such as upgrade of the ensuite, and some upgrade of the bathroom, heating and the construction of a large living room. The works are expected to be completed by mid 2018.
6. Will the time period offered be fixed or variable?
A rotating calendar will offer 2 weeks in the peak season and 3 weeks in the off-peak season on a rotating basis. However, owners are able to arrange to swap between themselves and other co-owners at any time. Once fully subscribed the property will be listed on www.FractionalExchange.com which will allow for owners to arrange exchange of their weeks with other fractional owners at other properties all over the world.
7. Can I rent out my weeks if not using them?
Yes this is possible to rent or exchange your time to fellow owners, to family or friends. Fellow owners have first right of refusal. Alternatively you can ask the Managers to assist in renting out your time (sufficient prior notice is required in this case).
8. If purchasing a Fractional Share in Casa Vecchi, is there a ‘cooling off’ period?
There is a 14 day ‘cooling off’ period after the receipt of a completed application form to purchase.
9. Am I required to pay in full for the purchase of my Fraction?
The purchase process consists of a 50% deposit with the balance to be paid on completion of the renovations. The deposit and all staged payments (in Euros) will be made into an ESCROW account held by BLB Solicitors in the UK.
10. Are there any fees in addition to the Fractional property purchase?
All legal fees/bank fees relating to the purchase of a Fractional Ownership of Casa Vecchi, and differentials in currency exchange rates are the responsibility of the purchaser.
11. Will there be price rises if all Fractions are not sold within the initial sales period?
The initial fractional purchase costs are at a very competitive level. Prices will increase over time to reflect the true value of the development.
12. Can I sell my fraction at any time?
Yes, it is possible to sell your fraction at any time at a price set by the owner. However, the other existing owners must be offered first right of refusal. The Management Company can also assist owners in the sale of their Fractional asset.
13. What are the ownership rules?
Ownership rules will be provided as part of the purchase application. The NO SMOKING principle must be adhered to within any part of the buildings comprising Casa Vecchi.
14. Who owns Casa Vecchi?
The property is owned by a non-trading, UK registered, limited liability company which has been established to sell Fractional Ownership of the property known as Casa Vecchi. This company has been established to operate on behalf of all its members.