Fractional ownership gives an investor ownership and use of a property for an agreed number of weeks each year for holiday or to rent out for profit. It is an increasingly popular and cost-effective way of investing in property.

Harlequin is offering investors the opportunity to own a sixteenth share in a Harlequin Property in the Caribbean which they can use for three weeks plus one week in another of Harlequin’s Properties in the same or a different resort each year.


How it works
Each property will be co-owned by a group of 16 investors who each own an equal share in the freehold of the property and will share the ongoing costs as well as the use of the property.

A detailed and legally-binding co-ownership agreement allocates usage rights, costs and responsibilities among the co-owners. For an annual fee the maintenance and bills are taken care of by the hotel management company so the owners are free to relax and enjoy their property.

If the owner chooses to rent out the property rather than use it during their four weeks the hotel management company can also arrange and manage this for an additional fee.

Owners are at liberty to sell their share in the property whenever they want or pass it on when they die in the same way as they would in an entire property, along with its related usage and exchange rights.

Benefits

• More affordable: Each share costs from £25,000 which gives investors who cannot afford to buy, furnish, and manage a property in the Caribbean by themselves the opportunity to enter the property market at a very low cost; it also gives investors access to a property worth a lot more than they may otherwise be able to afford.
• Excellent capital returns: It is estimated that the property will pay for itself in 10 years in saved holiday accommodation costs if the owner uses their four weeks allocation each year e.g. to holiday in a 5 star hotel in the Grenadines will cost £600 per person per week. Add to this the expected capital appreciation on the property and the owner will have gained a significant return on investment in just 5 years.
• Flexibility: Owners have exchange rights with properties at Harlequin Hotels and Resorts in other Caribbean locations.
• Own More Than One Vacation Home: Investors can choose to own a share in several properties in different locations rather than investing in a single property.
• Diversify to Maximize Profit and Minimize Risk: Fractional ownership allows investors to tie up fewer of their financial resources in one entire property freeing funds to be invested in non-real estate assets or in other real estate or both thus spreading exposure and opportunity among different currencies and economies across the globe.

Subject to status. Terms & conditions apply.


Q&A

WHAT IS FRACTIONAL OWNERSHIP?
It is an arrangement where a group of individuals buy a property together as co-owners and share the ongoing costs and use of the property.

WHEN WILL EACH OWNER USE THE PROPERTY?
Each property will have a permanent usage structure so that each co-owner can be certain of their usage rights. Each owner can use the property for four weeks each year. The owner will select their usage weeks each year based on a rotating system of priority well in advance to allow plenty of time for planning.

HOW WILL THE CO-OWNED PROPERTY AND CO-OWNER GROUP BE MANAGED?
For a yearly fee the maintenance and bills are taken care of by a management company, the Harlequin Property Club. They will also be in charge of administering the usage rights. A detailed and legally-binding co-ownership agreement allocates usage rights, costs and responsibilities amongst the co-owners. The agreement will also clearly lay out the rules for resale, gifts and inheritances of fractional shares to avoid any logistical difficulties.

WHAT IF I CAN'T OR DON'T WANT TO STAY IN MY PROPERTY DURING MY USAGE PERIODS?
Co-owners will be allowed to exchange any of their four weeks with other co-owners, give them to friends or family, or rent out the property and retain the rental income.

WHAT IF SOMETHING IS BROKEN, LIKE A TV OR AN OVEN; WHO PAYS?
Each property will have an annual operating budget which will include an allowance for repair and replacement of the property contents.

CAN I SELL MY FRACTIONAL INTEREST?
Investors can transfer or sell their share in the property at any time as with real estate ownership. The Harlequin Property Club can help with finding a buyer or completing the sale process.

HOW IS FRACTIONAL OWNERSHIP DIFFERENT TO TIMESHARE?
The important difference is that the buyer always has equity in the bricks and mortar they initially invested in, which means they can also take advantage of the increase in value of the property overtime as they would if they owned the entire property.