Part Ownership But With Full Benefits That Include Residual Income
Scotland has always attracted tourists avid golfers and people rediscovering their Scottish heritage.
The country also attracts a different kind of visitor. More affluent than most visitors, this welcome guest is the purchaser of fractional ownership properties such as Holiday Cottages (Scotland).
Fractional ownership properties are not the same as timeshare properties. Ownership is in perpetuity and it can be passed on to the next generation. Unlike timeshare property owners, fractional ownership property purchasers also own an interest in the property title registered with the Land Register of Scotland.
The interest entitles purchasers to have the Holiday Cottages (Scotland) at their exclusive disposal for one to four weeks or more each year.
Fractional ownership properties such as Holiday Cottages (Scotland) also double as a source of residual income for purchasers.
Purchasers can monetize their share by letting the property to others.
The purchaser may directly let a part of or all the weeks allotted to him to an individual, a group of individuals, corporate entity or organization. The purchaser names his price and keeps 100% of the revenue.
Alternatively, the purchaser may include a part or all of the weeks allotted to him in the management’s letting program. The management then becomes responsible for the marketing, reservations, housekeeping and everything else. The management shares a predetermined part of the revenue generated from the letting with the purchaser.
Some individuals may make a share purchase solely as an investment and may not want to make use of the weeks allotted to them for the next few years. In such cases, the management lets all the weeks from the purchaser for a predetermined period of time and pays him a fixed rental equaling a percentage of the share price. This arrangement ensures the purchaser a guaranteed return.
How much you pay for the share of the freehold interest in the property depends on factors such as location, demand, the size and configuration of the cottage, and the weeks of desired occupancy.
Purchasers may also be required to pay an annual maintenance charge and a housekeeping charge for the weeks the cottage is at the disposal of a purchaser and/or his family and friends. The management may also ask purchasers to contribute towards an extraordinary expenses fund for regular and extraordinary repairs and maintenance.
It is best to consult a competent lawyer before acting on your interest to purchase a share in Holiday Cottages (Scotland).
For more insights and further information about Scotland real estate properties, holiday cottages Scotland and fractional ownership property visit our site http://www.machrihanishdunes.com
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