Costa Del Sol
Welcome to the FAQs section of co-ownership-property.com for buying a fractional ownership property in Spain! We’re here to answer all your burning questions about co-owning a property. These are general guidelines which can be modified over time, contact us for latest.
In this FAQ, we will cover everything you need to know about buying a fractional ownership property in Spain, including how it works, the benefits and drawbacks, and what to consider before making a purchase.
So if you’re considering buying a fractional ownership property in Spain, read on for all the information you need to make an informed decision.
You can own anywhere from one to four shares of each property. Each share gives you access to six weeks of pure bliss every year.
Here are the key points to consider when looking into co-ownership for your Spanish second home:
- You can buy between one and four parts of a property through a company that holds the property deed.
- Each part typically allows you to stay in your second home for a certain number of days per year, such as 42 days (or 1.5 months) for a 1/8th share. You can buy additional shares to increase your stay time.
- A professional management company is responsible for looking after the property on behalf of the co-owners, including maintenance, cleaning, and rentals when the property is not in use.
- Co-ownership allows you to purchase a premium property at a fraction of the cost, as the price of the share includes the cost of renovation and furniture upgrades.
- You will split the maintenance, running costs, and taxes equally among the co-owners and pay only your share.
Yes, you own the property through a locally created Limited company that’s registered for the sole purpose of purchasing the property. It holds 100% of the deeds.
Absolutely! We want you to share your property with like-minded people. If you already have a group of co-ownership enthusiasts, let’s spread the joy. We often have friends or family relatives doing just that. Incidentally, this is how the system has been used for decades in Spain. Now, the only difference is that it is professionally managed so we find the other co-owners without them having to be your friends or relatives!
Yes, we will! This is what the system is based on. We work with a solid network of real estate professionals, so we’ll make sure to select the right group for you and your property.
The purchase cycle of a fraction can take anywhere from two weeks to three months (the longer when a Spanish mortgage is needed). The buying process of a property depends on how many co-owners there are and how many shares each owner gets.
Of course! You can find your own means of financing (cash or equity on your own house), or we can help you get financed through some of the financial institutions that work with our co-ownership model.
In France, French banks will only lend to French residents to purchase a share but in Spain, usually, an interest-only loan is available for non-residents to purchase a share in Spanish property.
The monthly fee is a steal around 120€ per 1/8 share. This covers all administrative work and technology necessary to run your property, as well as setting up and managing the company set-up for your property. All other property costs (utilities, Internet, insurance, building charges, tax) are proportional to the number of shares every owner has. They are included in an annual budget which is passed on to the owners with no markups and you just pay pro rata.
The length of the buying process for a property can vary, but it typically takes around 2-3 weeks. This can be influenced by factors such as the number of buyers interested in the property and the number of fractional shares that each owner holds.
The actual purchase of the property can be relatively quick, typically just a matter of days.
Yes, you can finance the purchase of a fractional property share with a mortgage in Spain (we are working on France).
Some partners in Spain may be able to help you obtain a mortgage to finance your share (usually an interest-only loan. If you are interested in this option, you can contact us for more information.
When purchasing a fractional property, you have the option to buy a certain percentage of the home, up to a maximum of 50%, which is equivalent to four shares (when the property is divided into eight equal parts). Shares are often sold in units of ⅛ ownership, although this can vary. Each share allows you to use the property exclusively for 42 days per year. You can typically buy between one and four shares of the same property, depending on your budget and the number of days you want to stay there annually.
For example, one share would allow you to stay for 42 days, two shares for 84 days, etc. It is generally possible to buy up to four shares of a single property (to avoid having a majority shareholder who could influence all the decisions of the company). However, you can buy as many shares as you like spreading with other properties.
Absolutely! We give co-owners the flexibility to let out the weeks they won’t be able to enjoy at their property or just to allow family and friends to stay in their property. Obviously, they should be able to behave and for example, under 18s are not allowed unless there is a responsible adult on-site.
We work with the best designers in the market in order to make sure each home is unique and tastefully decorated, according to our standard of excellence. The costs of the design are included in the final price of the property share that you have to pay. No marginal profits are added to it.
We think this is a great way to proceed for a second home abroad as the teams on-site are obviously Spanish and they have the best contacts and prices.
Don’t worry, we’ve got you covered. It is taken care of and resolved for any payment disputes with the specific co-owner with everything in place within the company statute to deal with such a problem.
Yes! Home insurance is included in your annual fee, as well as regular management of the property.
Our designers are top-notch, so we promise you’ll love the finished product. However, you’re more than welcome to store and bring in your personal belongings to make the space yours while you’re staying in your property.
Your belongings will be stored as part of the monthly service charges and will be brought to your property before your arrival. Nobody else will have access to your things except you, your family, and the property management team.
Remember, whether co-owned or 100% owned, you are building memories with your loved ones.
Yes, a co-ownership property is typically fully furnished and equipped with everything you need for daily use. This includes items such as crockery, bed linens, towels, and bathroom products. The house will be ready for you to use and enjoy as any other second home.
The property will also be decorated by interior designers to create a cohesive and attractive appearance. This means that you do not need to worry about purchasing or bringing any additional furnishings or household items to move in your new property.
When you purchase a share of a second home through fractional ownership, you also become the owner of the furniture and equipment that are included in the property. This means that you will indirectly hold a portion of the value of the furniture and equipment based on the number of shares you own.
For example, if you own one share, which is typically equal to ⅛ of the property, you will indirectly own ⅛ of the value of the furniture and equipment. If you own more shares, you will own a proportionally larger share of the value of the furniture and equipment. Essentially, you have an ownership stake in both the land, the house, and the furnishings and equipment that are included with the property.
We’ll create a set of rules that are personalised for the co-owners, so if the group is pet-friendly, it will be taken into account. But don’t worry, any damages caused by a co-owners pet will be held accountable to that specific person.
We expect co-owners to share a common philosophy to take care of their property with the utmost care. However, in order to ensure a common understanding and share the same expectations when using the property, co-owners will adhere to a code of conduct that will be made available and required to sign upon finalizing the purchase of the property.
Don’t worry, it’s not as scary as it sounds – just a few guidelines to ensure everyone has a good time.
Accidents happen, and we get it, exactly the same as could happen in any second home. We’ll help you out if anything happens during your stay in order to fix things up. We carefully inspect the property after each stay to make sure it’s left in the same state as before. Co-owners are responsible for damages to the property that happen beyond any regular wear and tear.
Absolutely! You can resell any time you want after a minimum latency period of 12 months. Co-ownership-property.com will help you resell your shares, and you’re free to set your own price at market value.
Also good to know, premium properties that are professionally maintained tend to appreciate better than regular properties, so you can expect to make a profit when you sell your share.
We include any services needed to keep the property in tip-top shape at the standard needed for an exclusive property. This can include anything from gardening to cleaning services, in addition to pool maintenance, insurance, or any annual fees. We only work with the best providers, so you can be sure you’re getting the best of the best. Also, don’t forget that the teams on-site are Spanish so they know the best professionals at the best price.
Buying a Spanish co-ownership property means you get access to some really special and unique services to make each stay unforgettable. On offer (extra cost) are customised services for the co-owners, including catering, at-home chef services, childcare, event planning and booking, as well as having your favourite wine and snacks ready for your arrival, among other things.
*Contact us to confirm terms & conditions