Explore blog articles shared ownership homes
shared ownership homes
Product·23/02/2023· Luna Marcos

Shared ownership homes

How many times have you watched those documentaries about dream houses andwondered when you will have your own villa? Well, the time has come thanks to VIVLA. 

We are a pioneer model in the sale of fractional properties. 

Imagine that you see a house that you like and you are given the possibility of acquiring only a portion of it at a more than attractive price. We’re sure that if you had the availability, you would take advantage of it and today we will talk about all that this opportunity represents for you. 

On the Internet you will find this instrument under different names, but today we will clear up all your doubts

Would you like to take a look at it? 

What is fractional ownership?

With fractional ownership you acquire only a part of a house so the rest of the house can be bought by other people.

Just as you read it, that property does not belong to only one owner, but several people are its owners in the eyes of the law

In this sense, one of the biggest confusions that this model usually generates is thinking that each owner owns a different room, but it’s quite the opposite. 

With this model the whole house is fractional, so in order to do certain things such as change the real estate, you will need the authorization of the other owners.  

Is it divisible or indivisible?

The fractional ownership gives you the possibility to sell it whenever you want.

Here the first thing to take into account is whether or not it is a divisible or indivisible property

The divisible ones are those that are divided among all equally. So, if it’s a marriage, each person would keep what he/she is supposed to, whether it’s a car, furniture, business, among other options. 

However, real estate assets are indivisible, they cannot be divided, so it’s much more complicated, but there are ways out of this complication. 

This is why we say that VIVLA’s fractional ownership is a better option for having a villa in the most exotic destinations in Spain, so you can enjoy it for six weeks a year without worrying about maintenance costs. 

Advantages of fractional ownership

Do you think fractional ownership is the option you were looking for? Discover some of the advantages and make the decision that fits your lifestyle best: 

1. Help for buying your home

Not everyone has the possibility of acquiring a mortgage because banks often set requirements that are difficult to meet

Thus, fractional ownership is a very interesting solution, although it obviously presents several limitations that you must take into account. Nevertheless, it’s better to own something than to own nothing. 

2. Benefits for both parties

If you think about it carefully, fractional ownership presents benefits for both parties

First, the buyer gets a deal where he acquires part of a property, so he won’t have to shell out large amounts of money. Sure, the decisions will be shared by everyone involved, but you know that no one will be able to take you off your roof. 

On the other hand, the lender greatly reduces the risk, since the amount to be paid is much lower and several parties have committed to assume the debt

3. Reduces maintenance costs

One of the headaches of every property owner is maintenance costs. Yes, it is true that having your own roof over your head is very advantageous, but there are a series of commitments that you will assume for life. 

One of them is the monthly costs, and it doesn’t matter if you live there or not, you will always have to pay electricity, water, internet and municipal taxes. 

Now, by sharing the property with another person you will also share the expenses that accumulate month by month. At the end of the day it’s a win-win situation for everyone involved. 

4. Greater profitability for investors

Believe it or not, buying 15 or 50% of a property is much more profitable than buying 100% because you acquire it for the same amount but you can sell it for a higher price. 

That’s why more and more investors have had their eye on this mechanism in recent times. They know that not everyone has the possibility to buy a house in the traditional way, so they assume the figure of fractional ownership among people who are committed to honor their payments.

5. Possibility to increase the shareholding

At the beginning you can buy a specific percentage, for example, 25% of the property. However, if in the future you have the money to increase your share you can buy more parts of the house. 

This will be calculated according to the value of the property, so if it increases the price will be higher, but if the market goes down, you will pay less money. 

Advantages of fractional ownership
Advantages of fractional ownership

Is it possible to buy a fractional property with financing? 

Yes, many banks grant mortgages to the fractional ownership mechanism, something that has come as a ringing endorsement for thousands of people who cannot buy a complete house. 

In this sense, the other owners will have to accept the terms of the credit, but they are not obliged to be holders of the loan, so they will not respond in their name at any time. 

However, if they reach a situation of non-payment and the bank is forced to foreclose, they will have to respond with their share of the house

Therefore, before purchasing your fractional ownership mortgage it is essential that you discuss it with the other owners, as you will put everyone in a commitment that will affect them equally in case there is a problem. 

Buying your second home fractionally with VIVLA

If you’ve read this far, you will surely think that fractional housing is the ideal option to buy your first home, but the truth is that it is a mechanism that offers advantages as well as disadvantages. 

The fact that you only have a part of the property and that in order to sell it you have to reach an agreement with the other owners is a headache in the medium term

In this sense, fractional ownership in VIVLA is the truly flexible alternative you were looking for to own your home.

We love the fact that you can buy unique villas and mansions in some of the most exclusive destinations in Spain, having the possibility of acquiring from one eighth of the house to half a fraction of the property. 

Then, each fraction gives the owners up to a maximum of 6 weeks per year for their total enjoyment, the opposite of the one week that the general timeshare concept gives you. 

In addition to this, you have a list of services that VIVLA will make sure work 100% so that you have nothing to worry about while you are away from the property. 

No matter what it is, cleaning the garden, filling the fridge or replacing that collapsed pipe, the company will do the necessary work to take this burden off your shoulders. 

In this way, it will be like having the membership of a 5-star hotel or resort, with the difference that you will get the intimacy that only a home is able to offer. In addition, VIVLA has alliances with different real estate companies to offer you a better service in every way. 

If you want to put your money to work while you enjoy the most exotic beaches in Spain, it is time to contact VIVILA once and for all. Discover now the new mechanism of owning your home without the headaches that most homeowners have because you will pay only for the part of the house you will use.

Get in touch with us to find your dream vacation home