Shared ownership is permanently shared ownership of the title to a holiday/investment property that can be used by each shareholder for a set amount of time each year. Together, owners own the land and all the units, furniture, equipment and other amenities exclusive to this property. Ownership can be kept forever, rented or sold or gifted to someone else.
 

In our modules we recommend five owners as being the optimum number.

Divide 100% by the number of co-owners (five) and each owner would own 20% or a fifth share of the freehold.

Our recommendation would be fifth shares; therefore each owner would be allocated 10 weeks usage per year. Shared ownership offers far more usage options than a typical timeshare agreement due to the reduced number of associated freeholders.

A typical shared freehold model will incorporate the use of a colour coordinated calendar which ensures fairness for all five owners. The calendars are fortnightly, allowing 2 weeks ownership every 8 weeks. As the year consists of 52 weeks, the usage dates will change every year to ensure fairness of date distribution.

Definitely Not The key difference between timeshare and Shared Ownership is that Time-Share is simply the purchase of “time” in a resort for fixed weeks. With shared ownership you purchase a full freehold share of the property’s freehold title deed, so you own an asset that may increase in value, may be sold or may be passed on to future generations. You also get much longer and more flexible usage of the property than with Time-Share.

No. The concept of shared equity ownership originated in the USA and was first used for the purchase of corporate jets. It has also been applied to all sorts of other things such as yachts, cars and jewellery. Properties in the USA & Canada have been sold on a “share” basis for 10 years although it has only fairly recently been introduced in Europe. In Canada, 40% of holiday properties are sold on a “share” basis. It is still a very new concept in Turkey but the concept is simple and lends itself perfectly to the holiday home market. We firmly believe that it offers a wonderful opportunity for people to purchase 10 weeks usage of their dream home in Turkey.

Yes, there should always be a full set of rules and regulations which will form part of the main contract (your “Agreement for Sale”) and will cover, for example, maximum occupancy rules (to ensure that wear and tear on the property and its contents is fair to all owners) and details of any sinking fund covering dilapidations which is in place.

Shared Ownership owners are often required to contribute to a sinking/dilapidations fund which may be in place to cover general wear and tear on the property, for example the replacement of furniture, equipment, refurbishment and interior re-painting, in order to keep the property in excellent condition at all times. The sinking fund is co-ordinated by the management company responsible for your property

The simple answer is that they are not affected. Owners hold title as equal share holders, and in case of financial difficulty only their one fifth share is considered for equity purposes. Creditors have no claim on the others or the others’ interests.

From the outset you would enter into an agreement with a professional management company supplied by Romance of Turkey who will arrange regular scheduled cleanings for the owners between one owner leaving and another arriving. In addition, full inventories are taken by the management company between each owner taking up occupancy. Any damages will be made good, the property will be fully cleaned and the bed linen changed in readiness for the next owner. General maintenance will be carried out in 2 assigned weeks every year.

These costs will vary from property to property. They will, generally cover virtually everything including taxes, utilities, insurance of the apartment, furniture and fittings, maintenance, cleaning, inventories etc. They will also cover expenses that are unique to the development such as pool maintenance. Also worth considering are the costs and damages beyond normal wear and tear, although this should be covered by the sinking fund in most cases. Your management agent will help you further in knowing exactly what the monthly expenses are. Don’t forget, whatever the annual maintenance charges are, you will only pay one fifth of them.

Shares can be held for generations, or can be sold, transferred or willed at the wish of the shareholder. You have the right to sell your ownership just as with any freehold property.

The answer to this is “no”. You will own 20% of the property freehold in perpetuity.

We continue now with a GUIDE TO SHARED OWNERSHIP

An introduction to our Shared Ownership guide

Shared ownership has been an accepted way of buying property in the USA & Canada for more than 10 years, although only introduced to Europe very recently. As well as being used as a means to buy property, it is also used to purchase planes, yachts, cars and even jewellery. In Turkey, in common with the rest of Europe, the concept of buying holiday/investment property on a shared basis has been virtually untried. Turkey will quickly become one of the pioneers of shared ownership in the Mediterranean as a number of long established and highly reputable developers are due to make their outstanding properties available on a shared basis.

Shared Ownership is literally shared ownership of the title to a property; not to be confused with “Time Share” which merely gives you the right to occupy a property for certain set weeks. It is an ideal format for buying lifestyle and investment property. Our models allow for properties to be sold in one fifth shares, meaning that five separate purchasers each buy title to one fifth of the property. Whilst many people dream of owning their own luxury holiday home or investing in a second property, they often find the initial financial outlay and running costs difficult to justify. Fractional ownership can meet the needs of many more potential buyers and offers a property which is:

•  Shared Ownership
•  Freehold Ownership – Bricks and Mortar
•  In Perpetuity – Forever (unless you decide to sell it)

Purchasing a share from Romance of Turkey is a very straight forward matter. Title to any property in Turkey is recognised through the issue of the TAPU, the Turkish equivalent of a Land Registry Certificate. Our share scheme would split the TAPU into five separate TAPU’s, one for each fractional owner. This allows the owner of a fraction to sell their fraction at any time without affecting the other fractional owners of that property. The ownership of the share is notarised with a public notary and registered by the land registry certificate. (Tapu office of Turkish Government). Ownership of a one fifth share of a property entitles owners to 10 weeks occupancy of a property on fixed calendar basis.

Shared Ownership is the alternative route to owning Freehold Property and we again must emphasise it is not to be confused with Time-Share.

Purchasers of shared property are investing in the bricks and mortar and enjoy the same ownership rights as any individual purchasing freehold property. It offers purchasers:

•  Deeded property with the same rights as any other real estate purchase
•  A property which is fully furnished to a very high standard
•  10 weeks a year sole occupancy of the property, allocated to each owner on fixed basis.
•  The ability to share all maintenance and running costs of the property
•  The benefit of rental income for any unused weeks.

This form of ownership also benefits those who would like to test the idea of holiday home ownership before making a larger investment and is a fantastic way of reducing investors’ financial exposure, giving them the opportunity of spreading their portfolio

Shared ownership is Freehold Ownership and NOT Time Share. Time-Share gives guaranteed occupancy rights for a defined period each year, which is in common with a shared ownership.

However it is:

•  Not ‘Freehold’ ownership
•  Unlikely to achieve any capital appreciation
•  A cost rather than an asset
•  Carrying a lot of negative media coverage
•  Often involving high maintenance charges for limited access

Shared ownership gives you actual freehold ownership of a property as opposed to just the right of usage. Buying a share meets the requirements of many more potential buyers

including those who:

1. Would love to buy their holiday home outright, but lack the funds.
2. Have the funds but recognise it makes little economic sense to pay for and maintain a property when only used for a limited period each year. (Typically foreign property owners use their properties for between 4 & 6 weeks a year.)
3. See shared ownership as a way of spreading their portfolio and reducing their financial exposure.
4. Realise that their budget would allow them to buy a 10 weeks use of a significantly better property than they could otherwise afford if they used that budget to buy a whole property.
5. Want to be able to arrive at their property knowing that it has been cleaned, that the bed linen has all been changed, that the fridge is stocked with basics and that they can head straight for the pool or the bar.
6. Want to be able to share in any capital appreciation if they sell their fraction at some time in the future

Administration

There are a number of shared schemes in operation, with many more comprehensive schemes offering protection for both owners and developers. They do so by ensuring that properly structured documentation, prepared by our highly experienced international property lawyer, in Istanbul , is in place for all the properties available on a shared basis, namely:

•  Property management agreements
•  Shared sales contracts
•  Properly constructed usage calendars to ensure that each owner is treated absolutely fairly in the allocation of their weeks throughout the year

The Buying Process

Shared property purchases follow the same process as any freehold purchase. Legal advice is a “must” for all buying clients therefore all legal charges are built in to the shared buying price. Buyers will not pay any extra legal fees.

Dedicated Professionals

As with any property purchase, clients want to be sure that they are receiving the best advice at all times. To safely purchase a property share we employ :

•  Shared sales professionals with extensive product knowledge.
•  Sound legal, financial and tax advice using only professional partners.
•  Carefully selected developments which offer an extensive management and maintenance programme.

Property Options

Choosing your shared property is no different from choosing a property for outright ownership. Location, sporting and leisure amenities along with restaurants, bars and shops are very important to a lot of buyers. However, you may just be attracted by the opportunity to purchase a fifth share in a property you wouldn’t otherwise be able to afford, even though it may not offer many other facilities.

Property Types

Choosing a property that suits your lifestyle and needs is made easier, with far more property options available to you through shared ownership. Not all clients can afford to purchase, for example, their own luxury apartment outright, as a holiday home. Many clients can, however, afford a 20% stake in that property. Property we offer on a shared basis will always be of the highest quality, offering more facilities and choice for its clients. We all dream of owning a luxury apartment located in an exclusive holiday destination, but not everyone has the time or money needed to own such a property. For those of us who might struggle to afford the initial outlay and/or the maintenance costs associated with purchasing a property outright, shared ownership may definitely be the solution.

Services and Benefits of Shared Ownership

Higher standards of services and facilities are generally associated with shared purchases. They will include things such as : full management and
 maintenance of your property, rental management programmes etc... Typically, all shared properties will be delivered furnished to a very high standard and fully equipped. The concept is designed to make owning your home a hassle free experience, leaving you time to enjoy your usage.