Fractional Ownership News
New Fractional Mortgage Products For Investors
In an effort to attract buyers wishing to buy overseas property, but concerned about the financial outlay and the perceived risk of buying abroad, two companies have launched new fractional mortgage products to encourage buyers in an increasingly competitive year for the industry.
Property investment specialist Assetz has launched its new division, Assetz Fractional, which it says is the 'first robust and financially secure' fractional ownership scheme and has released two new fractional mortgage products for investors.
The first option allows buyers to secure the mortgage on their UK property and the ownership certificate of the overseas property. The maximum LTV offered is 95% and the loan can only be provided in Euros. The second mortgage product offered by the firm is a 60% maximum LTV loan provided in Euros and secured solely on the membership certificate of the overseas property.
"Statistics show that a growing number of people are considering investing in a holiday home, however, many potential buyers are disappointed with the quality, location and even the country dictated by their budget," said Stuart Law, chief executive of the Assetz group. "As a result, more buyers are now toying with the idea of buying a property between friends, family or other like-minded investors, but concerns over legal and financial matters often act as a final deterrent.
"The initial financial outlay, along with annual running costs can also be hard to justify on a property that will only be used occasionally during the year. By offering a whole package, taking responsibility for the sourcing of properties and investors due diligence through to the full maintenance and the allocation of time slots, we have removed all of the risks, making second homeownership a reality for thousands of potential buyers, currently constrained by budget or a fear of risk."
Although fractional ownership has been around for several years, obtaining finance in the UK for this investment vehicle was often difficult, putting off many buyers. Colin Gower, MD of the Spanish Mortgage Exchange has released the company's new 70% LTV fractional mortgage, for golf properties on the Costa del Sol, which he hopes will encourage UK investors to buy up big this year.
"The shared ownership scheme has been around for some time and is very popular with golfers, especially in Portugal and the USA. The Costa del Sol is one big golf course and there are a lot of bargain properties around. This scheme will help both buyers and sellers in what is a depressed property market," added Gower.
Overseas Property Professional, 21st January 2008
