Do you dream about owning a piece of high-end real estate but think there’s no way you’ll be able to afford it? Think again. With fractional ownership, you can own a share in a luxury property – with none of the other stresses that come with owning a holiday home.
There’s a reason why TV shows like Selling Sunset and Buying London are so popular: we all love to see what we could buy if we had millions of pounds to spare. If you’re a fan of these shows – or you’ve ever whiled away the hours scrolling through images of mansions with indoor gyms, sprawling grounds and other high-end features – keep reading. In this article, we’ll take you through exactly what fractional ownership is, explain how it differs from timeshare, outline the scheme’s main advantages and answer some frequently asked questions.
What is fractional ownership and how does it work?
Fractional ownership allows multiple parties to own equal shares in a property. Over the course of a year, each owner has their own private exclusive weeks to use at the property.
Each owner’s fractional share comes with its own rights, responsibilities and financial obligations. In many cases, these shares can be traded, sold or inherited – just like any other asset in their estate or will.
Maintenance is typically handled by a management company, with the cost shared among the owners. The cost is proportional to the amount of time each owner spends at the property.
Own shares in a luxury overseas property
What’s the difference between fractional ownership and timeshare?
Fractional ownership is often confused with timeshare – but there are some significant differences between the two.
In a timeshare, you purchase the right to use a property for a specific number of days each year, but you don’t actually own a piece of the property. Fractional ownership involves actual ownership, which means that if the property appreciates in value, your portion does too.
Fractional ownership properties are typically more luxurious than timeshare properties, and they often come with additional services and amenities. This higher level of luxury often means fractional ownership is more expensive than timeshares.
Finally, fractional ownership shares can usually be resold, whereas reselling a timeshare can be more difficult. “Timeshare is like Apple Music – it dies when you die,” says Nigel Carley, chairman of Italian fractional ownership company Pinelli. “With fractional ownership, you own a portion of the property, and your shares can be inherited or sold on when you die.”
Advantages of fractional ownership
Fractional ownership has many advantages. The biggest benefits are that it makes higher-priced properties more accessible and – because it is an investment – there’s potential for growth.
According to various studies and surveys, the average holiday home is used for just 30-60 days per year. This means buyers only get to enjoy their holiday homes around 8-16% of the time but have to pay 100% of the cost. Fractional ownership makes more sense, as you’re only using the property for a portion of the time, but you’re only paying a portion of the cost. Security worries aren’t an issue either, as someone else is on hand to take care of the property when you’re not there. Also, there’s no need to consider holiday rentals and the added stresses that can bring.
Another big advantage of fractional ownership is that the owners aren’t responsible for renovation, maintenance and cleaning. “The only things our clients need to think about is what they’re going to eat and drink during their stay,” says Nigel. “Everything else – such as cleaning products, utility bills and taxes – is looked after by our management company”.
Here are some of the other benefits of fractional ownership:
- You’ll be matched with other buyers according to your personalities, so there’s the potential to make new friends
- You can own a larger, more luxurious property for the same or a fraction of your original budget
- If you need to cancel a visit, some companies – like Pinelli – will help you rent out the property during that time
Fractional ownership makes higher-priced properties more accessible
What are fractional ownership properties like?
Fractional ownership properties can be villas, cottages, apartments or even yachts. As mentioned, they are typically found towards the higher end of the market, with high quality fixtures and fittings and are situated in desirable locations. This is certainly the case with Pinelli.
Nigel and his wife Dawn started The Pinelli Group in 2016, fuelled by a passion to make luxurious properties more accessible. When buying properties that need renovating, Pinelli takes photos of original features like beams, completely guts the property, makes the necessary renovations and then – to honour the property’s original character – puts the original features back in. Each Pinelli property is divided into 12 shares, allowing like-minded people to have a taste of the high life. For example, £192,500 can get you a share in a 4-bedroom, 4-bathroom luxury villa with eco-friendly features, a heated swimming pool and views across the Amalfi coastline.
The holiday home of your dreams
Pinelli Group FAQs
- I’m considering buying a share in one of Pinelli’s properties. Does booking a discovery visit mean I’m committed to buy? “While there is no obligation to buy, our discovery visits are designed to market our various properties for sale. Should you decide to purchase, we offer flexible deposit and balance options, which may vary from property to property. Feel free to ask about the current offers and terms for any specific property. There’s no pressure to buy, but everyone who has ever come on a discover trip has ended up buying. Which just goes to show how successful our model is!”
- Do co-owners get a say in the design of the property? “No, but owners are invited to be a part of the property management decision processes.”
- Where are Pinelli’s properties? “Currently, Pinelli only has properties in Italy, however, we are expanding in 2025 into other European countries, like Spain, Portugal and Croatia.”
Nigel will be on hand to answer your questions about fractional ownership in our webinar on Thursday 21st November at 3:30-4pm GMT. Register here.
You might also like:
