Cyprus-Forum.com

[Walker Family]

We have purchased a 3 bed 3 bath villa next to Secret Valley Golf course near Paphos and are looking to offer fractional ownership to other individuals. When we purchased the property the idea was to sell prior to completion but as we feel the property will increase a lot more in value when the development is completed we wondered if there was a market for fractional ownership in Cyprus; fractional ownership is not new to the American market but I don't know of it being offered in Cyprus. I have checked with Solicitors in Cyprus and they have informed me it can be done by registering a Ltd Co and issuing the shares in the Company; it makes sense to me to do this as if 6 people owned the villa all maintenance costs are split 6 ways and you would all get use of the villa for 8 weeks during the year.

Doe's anyone have any information on fractional ownership in Cyprus or would you be interested in having shared ownership of the villa.

[growuptcs]

Like a timeshare?

[Walker Family]

It would be different to a time share as there would only be 6 owners of the property and you could re-sell your shares whenever you wanted to and gain any increase in the price of the property as you actually own a sixth of the property. I havn't looked into timeshares but I understand some timeshare only last for 30 years; this would be for life as you own the property.

[CatSitter_Limassol]

It's a great idea if you have a mix of people who can use the villa at different periods - ie: some with and some without school age children, or people who can take holidays whenever they wish to - otherwise, everyone will want the same weeks.

We considered it a while ago but didn't go down the route at the time.

Any ideas of the cost layout at this stage, Walker Family?

[nhowarth]

Hi Walker Family

I think you may have some problems with this from two aspects:

1. Until you've completed on your purchase (i.e. when Title to the property is registered in your name), you'll probably need the agreement of its registered owner who is most probably the developer you bought it from.

2. There will be issues with ownership the property at the Land Registry - and bear in mind that you will not be able to register ownership until you've completed (see 1).

A number of property developers are doing something along similar lines, by offering shares in a project rather than individual Title Deeds. (You can read more about this at: http://www.aloizou.com.cy/documents/Tit ... Danger.htm )

It is possible to do this by setting up a company that owns the property and then issuing shares to each part owners. But whether there's a market here, I'm not sure - and there'll possibly be some 'debate' as to which part-owner has which 8 weeks.

Good luck,

[Walker Family]

Hi Cat Sitter

We are looking at a cost of £56,000 for a sixth ownership which would include 8 weeks use per year, furnishing, landscaping and legal fees. We think it is a great idea it is just finding the best place to advertise it as I have been in touch with a company who deal with fractional ownerships but they would be looking at a fee of £11,000.

Regarding the balance of people wanting the same weeks as the villa is next to Secret Valley Golf Courwse we are looking to attract golfers, who would probably want the cooler periods of March, April, October and November, and then look at families who would require the school holidays; obviously the 8 weeks would have to be split equally during the year.

If you know anyone interested our e-mail address is [email protected]; we have no pictures at the moment but we are coming out to Cyprus on 17th March to sort the furniture out etc and will take some pictures to advertise whilst we are out

[Walker Family]

Hi Nigel

Just read your posting and thank you for your input; however, I have spoken to a Solicitor in Cyprus and we are aware we need to put the property in the name of a Ltd Co and issue shares; it is just targeting the right people.

[CatSitter_Limassol]

It is a great idea, particularly for someone who wants a holiday place for a few weeks rather than a permanent residence or, who cannot afford to go the whole hog and buy a property alone. The only way to set this up in Cyprus is by forming a Limited Company as you say.

I will keep hold of your details and get back to you.

[Walker Family]

Thanks Cat Sitter - If you do have anyone in mind and they buy a share of the villa we would treat you as it saves us the expense of advertising.

[Radio]

I've seen similar schemes advertised for properties in other countries, and the only equable way for it to work is for dates to be allocated on a rolling rota basis. e.g. if owner A has January and July this year, they would be allocated February & August next year and so on.

I suspect there is a very limited market for these schemes for obvious reasons, and equally there would be a very limited market when you wish to sell.

P.S. Who gets the other 4 weeks ?.