Why selling your co-ownership share is so different from selling your Timeshare
Timeshare: The Dream That Turned Into a Nightmare (unlike second home co-ownership…)
Did you once dream of owning a timeshare, only to have your fantasy ruined by high fees and endless hassle? If so, you’re not alone. Timeshares can seem like a great way to spend your holidays, but they usually end up being a financial burden.
Below we shall see the different options to get out of a timeshare. In this article, we’ll discuss how to get out of a timeshare and compare it to co-ownership for second homes (also called fractional ownership), the associated costs, and who would likely benefit most from each method (you will quickly understand who the true winner is…).
We’ll also discuss the pros and cons of timeshares, and why you might want to consider alternatives like fractional ownership.
So if you’re thinking about getting out of a timeshare, read on for everything you need to know.
Here is a comparison of the strategies for getting out of a timeshare, compared to fractional ownership for second homes:
| Strategy | Timeshare | Co-Ownership of a second home |
|---|---|---|
| Use the cooling-off period | This is the cheapest option for getting out of a timeshare, but it is only available if you have recently purchased the timeshare. Cost: Free | Of course, when you reserve a co-ownership share in a second home you have the regulatory cooling-off periods linked to any real estate operation. We some of our partners we have as many as three separate cooling-off periods. Also and often with our partners, you have the option to switch to a different property if you realise that the property you own is not quite what you were looking for. Cost: Free |
| Try a timeshare deed-back program | Some timeshare developers offer deed-back programs, which allow you to sell your timeshare back to them for a nominal fee. This is a good option if you’re in good standing with the developer and your timeshare is in good condition. Obviously, the amount you get will be significantly lower than the original price you paid. Cost: Free | Co-ownership companies may offer buyback programs (some of our partners do) but when you can sell your share on the open market or through us, and potentially make a profit, why bother? Cost: No Need |
| Hire a contract law solicitor | If you’re struggling to get out of your timeshare on your own, you may want to consider hiring a contract law solicitor. A solicitor can help you understand your contract and negotiate with the timeshare developer to get out of the contract. Cost: 4,000-20,000€ | Co-ownership does not require a solicitor to get out of the contract. The sale is just like any real estate sale except that it is a lot easier and cheaper. No stamp duty or high legal fees to pay. On average in Europe, it is all done through a notary public and for only a few hundred euros (average 500€). Cost: No Need |
| Sell your timeshare on the resale market | If you’ve owned your timeshare for a while, you may be able to sell it on the resale market. However, be prepared to sell it for less than you paid for it, as timeshares typically depreciate in value over time. It is historically very difficult to sell your timeshare without knocking back a big amount from the original value. Cost: average 500€ | Co-ownership shares can typically be sold for more than you paid for them, as they follow the increase in the value of your property. Also, co-ownership properties are premium properties which, very often, have been renovated, refurbished by an interior designer, upgraded (a swimming pool or hot tub for example) and professionally maintained over the years (important for older properties or properties with a garden for example). All these factors certainly increase the value by at least 20% compared to when the property was originally purchased. Add to this the fact that premium properties in premium locations tend to increase their value over time and you could be in for a nice little profit. You just sell your share at market value, to the other co-owners (often the case as, very often, they will be waiting for a share to become available for friends, family relatives or even themselves), to one of our clients or just publish it on any property platform for sale. Cost: average 500€ |
| Find a timeshare exit company | Timeshare exit companies specialise in helping people get out of timeshares. They typically charge a fee for their services, but they may be able to get you out of your timeshare faster and with less hassle than you could on your own. Be very careful as there are many timeshare exit company scams on the internet Cost: 2,000-15,000€ | Co-ownership does not require the use of an exit company. See above to see how to sell your co-ownership share or contact us, we would be happy to help. Like any property sold on the market, you will need to pay an agent fee, in France or Spain, usually on average 5% of the selling price. Cost: No Need |