{"id":7649,"date":"2023-01-18T16:17:13","date_gmt":"2023-01-18T16:17:13","guid":{"rendered":"https:\/\/www.black-brick.com\/?post_type=guide&#038;p=7649"},"modified":"2023-01-18T16:17:13","modified_gmt":"2023-01-18T16:17:13","slug":"buyers-guide-fractional-ownership","status":"publish","type":"guide","link":"https:\/\/www.black-brick.com\/property-guides\/buyers-guide-fractional-ownership\/","title":{"rendered":"Buyer&#8217;s Guide: Fractional Ownership"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Fractional ownership of real estate is a way for multiple buyers to share the cost, risk and capital gains of property ownership, while receiving their fair share of usage rights over the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Importantly, it\u2019s not the same as a typical timeshare arrangement:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In a timeshare, the purchaser (usually) pays for the right to use the property for a certain number of weeks each year, without taking ownership of it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In fractional ownership, the purchaser buys a partial stake in the actual ownership of the property, and can use it for an equivalent share of the time.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">During recent years, fractional real estate investment has become much more common throughout Europe, as well as in both North and South America.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fractional ownership in London is also rapidly increasing, especially among individuals who want a prime piece of real estate but only need access for a relatively small percentage of the time.<\/span><\/p>\n<h2><b>What is fractional ownership?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Investopedia defines fractional ownership as \u2018a percentage ownership in an asset\u2019, in which individual shareholders \u2018share the benefits of the asset such as usage rights, income sharing, priority access, and reduced rates\u2019.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some timeshare contracts confer fractional ownership upon the purchaser, but in most cases a timeshare operates more like a rental. Conversely, in fractional ownership real estate investment, the buyer takes ownership of a share of the property either directly or through a parent company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This partial ownership of houses is a way to buy property in prime locations like central London, without paying 100% of the market value. It\u2019s therefore particularly valuable in cases where the house would otherwise be left empty for much of the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Crucially, fractional ownership shareholders receive all of the benefits of their stake in the property, such as the ability to sell at any time, and to receive their share of any capital gains when they do so.<\/span><\/p>\n<h2><b>Why is fractional ownership popular?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Fractional ownership gives people a way to invest in prime London real estate at (in the most literal sense) a &#8216;fraction&#8217; of the price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specialist property management companies acquire the real estate upfront before selling the fractional stakes to investors, who receive a specified number of nights in the property for each share they buy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New startups are transforming the UK market, equipping new-build homes with cutting-edge technology, including digital keys that can unlock the front door remotely via an app, and online booking systems for owners to schedule their visits.<\/span><\/p>\n<h2><b>Who does fractional ownership suit?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Several groups of people can benefit from the advantages of fractional property ownership in London. For example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investors keen to make capital gains on prime London real estate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professionals with occasional work commitments in London<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holidaymakers who want a regular holiday home with year-round storage<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Camilla Dell, managing partner of Black Brick, says:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2018Fractional ownership offers the unique opportunity to be based in London for part of the year [making it] a desirable option for those who visit London for business, visiting family, or for leisure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2018We expect this opportunity will also appeal to businesses who wish to have access to properties for staff from overseas who may base themselves in London on a temporary basis. By owning a fraction of the property, the investor pays a fraction of the price but will still gain from long-term capital value.\u2019<\/span><\/p>\n<h2><b>Fractional ownership in London<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Black Brick is working with international start-up Flyway to bring fractional ownership to London. Black Brick is sourcing more than a dozen prime properties in London, which Flyway will fit out to a high standard and sell on a fractional basis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We have already sourced and secured a number of exciting luxury properties, for example:<\/span><\/p>\n<h3><b>The Hummingbird Home<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A one-bedroom Mayfair pied-a-terre with convenient access to Oxford Street, Regent Street, Bond Street and Piccadilly Circus, as well as the green space of Hanover Square. Refurbished by renowned New York designer Karim Rashid, the property features Eight Sleep cooling mattress technology, Philips Hue wireless lighting and SONOS speakers. Fractional ownership is available from \u00a3289,000 for 30 days per year.<\/span><\/p>\n<h3><b>The Wader Home<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A one-bedroom Liverpool Street apartment in new development <\/span><a href=\"https:\/\/www.black-brick.com\/expertise\/case-studies\/one-crown-place\/\"><span style=\"font-weight: 400;\">One Crown Place<\/span><\/a><span style=\"font-weight: 400;\">. Stunning 16th-storey views give a stunning outlook across the city&#8217;s skyline. Designers Bowler James Brindley and Studio Ashby worked with architects KPF to create &#8216;quiet luxury&#8217; in prime central London. Black Brick was able to negotiate favourable purchase terms and helped to manage and oversee the legal process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Flyway CEO Nikos Drandakis says \u2018democratising second home ownership\u2019 is more important than ever in a climate of consistently rising prime property prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2018Empty second homes are a huge waste of resources\u2019 he says. \u2018Fully managed co-ownership doesn&#8217;t only boost the purchasing power of buyers, it also helps maximise utilisation of resources, being a much more sustainable way to own a second home.\u2019<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Black Brick is excited to be involved in advancing this \u2018smart new way to own a second home\u2019 in London.<\/span><\/p>\n<h2><b>The future of fractional ownership<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Numerous similar companies are believed to be investigating the London fractional ownership market, ahead of a potential expansion into the UK from Europe and\/or America.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Camilla Dell said: \u2018These companies are here, and they are very active. They seem to be springing up everywhere. It will be interesting to see if it succeeds in attracting buyers who feel this format will make second home ownership affordable, or who don&#8217;t want the hassle of managing and maintaining a second home in London.\u2019<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more insight into London\u2019s unique investment opportunities, or to discuss your own <\/span><a href=\"https:\/\/www.black-brick.com\/services\/buying\/\"><span style=\"font-weight: 400;\">property plans<\/span><\/a><span style=\"font-weight: 400;\">, please <\/span><a href=\"https:\/\/www.black-brick.com\/contact\/\"><span style=\"font-weight: 400;\">contact Black Brick today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fractional ownership of real estate is a way for multiple buyers to share the cost, risk and capital gains of property ownership, while receiving their fair share of usage rights over the property. Importantly, it\u2019s not the same as a typical timeshare arrangement: In a timeshare, the purchaser (usually) pays for the right to use [&hellip;]<\/p>\n","protected":false},"featured_media":7650,"template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","inline_featured_image":false,"ghostkit_customizer_options":"","ghostkit_custom_css":"","ghostkit_custom_js_head":"","ghostkit_custom_js_foot":"","ghostkit_typography":""},"topic":[],"hub":[253],"class_list":["post-7649","guide","type-guide","status-publish","has-post-thumbnail","hentry","hub-buyers-guides"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Buyer&#039;s Guide: Fractional Ownership - Black Brick<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.black-brick.com\/en-ae\/property-guides\/buyers-guide-fractional-ownership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buyer&#039;s Guide: Fractional Ownership - Black Brick\" \/>\n<meta property=\"og:description\" content=\"Fractional ownership of real estate is a way for multiple buyers to share the cost, risk and capital gains of property ownership, while receiving their fair share of usage rights over the property. 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