Times Online

It all adds up
If you can't afford your own holiday home outright, fractional ownership can buy you a slice of the good life.

If you've always dreamt of having a second home, but don't have the cash and can't afford a second mortgage, don't despair. There are other ways of buying that rural or seaside bolt hole - or, at least, a part of it.

Fractional ownership - the 21st-century answer to timeshare, born in America and quickly gaining popularity on our shores - is one option. Normally speaking, you buy a period of anything from 4 to 13 or so weeks each year, during which the property is yours either to use or to rent out. Unlike its cousin, timeshare, you actually have a stake in the property itself, which means you get a share of the title and so benefit from any capital gain if its price rises.

The attractions are obvious, especially to people who know that, realistically, they will only ever get round to using a second home for a few weeks a year. There can be downsides, however, chiefly the British climate. To make it fair, the weeks in which you will be able to use the property usually vary from year to year; still, someone is always going to be saddled with November or February - not the most attractive months in Britain. Also, service charges can be high and the resale market is not yet well developed.

However, some customers are satisfied. Last year, Stephen McKechnie, 38, a builder from Glasgow, bought into a two-bedroom flat at the Colquhoun Mansion House apartments at Loch Lomond for £199,000, getting 12 weeks' use a year, on a 96-year lease. The annual management fee, set at about £5,000, includes membership of The Carrick golf course and country club.

Though clearly not the cheapest option (spend another £100,000 or so and you could buy your own four-bedroom house in the area), McKechnie says he believes his decision to buy a slice of a property is a good one. "Loch Lomond is only a 25-minute drive from where I live," he says. "And I'm going to use all the weeks myself. You'd be spoilt with 52."
However, McKechnie will not be master of his timetable - only four of the 12 weeks will be "gold", that is, in prime summer or holiday periods. A similar deal is on offer at Bovey Castle, Dartmoor: twelve-week "fractions" of two- and three-storey country lodges start at £290,000.

Mortgages at the Loch Lomond site can be arranged through HBOS, but banks and building societies have hitherto been reluctant to lend money on such schemes, with most buyers remortgaging their primary residence. This is changing, though: the Manchester Building Society has now begun to offer mortgages and other lenders look likely to follow. Alternatively, why not try pooling resources with friends or siblings? To avoid nasty squabbles, treat the purchase as a business venture and draw up a legal document. Also, decide who gets the house when, then compile a rota - and stick to it.

The idea of a more informal arrangement among pals who simply want a weekend getaway may seem a great idea initially, but friendships have been known to founder after squabbles about whose turn it is to use the place, and when and how often repairs are carried out.

Emma Wells

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