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Fractional Ownership FAQ Overview

We realise that there may be many questions you have, and we are here to help and answer them. We would like to think  we have covered everything, but please don't hesitate to contact us if you have a question which is not answered here.

It is important to note that these relate to a purchase at the Pinelli Estate. If you are planning to purchase a different fractional property then the questions and answers will be similar but may vary in detail. The basic concepts are the same for all fractional properties.

We have grouped the FAQs into sections  - from the more general, through specifics about Pinelli Estate and some legal and financial FAQs.

General FAQs about Fractional Ownership

Here we cover some general questions that you may have but please just let us know if we have not answered your particular question.

These questions would apply to almost any fractional ownership property. Obviously local taxes in Italy will differ to other countries, but the basis for sharing is the same, as is the calendar-based sharing concepts.

We recognise that the fractional ownership concept may be new to you so please do take the time to check through these as they are questions that have all been asked before.

 

Designed specifically for people who wish to own a holiday home, but don’t want to have the worry, burden and complexity of personally managing their property but just want to arrive and have all the time to enjoy their second home.
Collective ownership, or Fractional Ownership, provides a share in a limited UK company that owns a property asset valued at over €1.5M. Allowing you to enjoy a luxury life style without committing significant capital on a property that you would only use for a few weeks a year.
This is important as the fractional (or collective) ownership purchasing model should not be confused with timeshare arrangement. Once the share purchase is made, the owner can sell or pass on the share to family members.
It is advisable that you seek and appoint your own independent legal counsel. We are happy to introduce a legal firm that has already successfully and satisfactorily advised all of our existing owners. The additional costs to expect therefore are:
The costs of your legal counsel
UK Government stamp duty currently 0.5% of the share purchase price
People have long shared the costs of holiday homes among family, friends, and partners. Various collective ownership properties have existed in major resort destinations of Europe since the 1970s. New projects specifically designed for fractional ownership began appearing in the 1990s and have increased in numbers throughout Europe.
Fractional ownership is flexible and is attractive to people who may have capital tied up in other investments but still want to enjoy a high-end property. Equally it appeals to people who want a well-managed property and who realise they can only enjoy their property for a month or so each year.
It is suitable for:
  • Frequent visitors who are interested in buying overseas but want to experience the resort or location before committing to whole ownership
  • People who would like to invest in property in several different countries or resort locations to reduce their financial commitment in a single destination
  • People who could afford whole ownership of a holiday home but would not use it sufficiently to justify a whole purchase
  • Buyers who could afford a cheaper second home but really want to spend time at a larger, higher specification holiday property
Yes, you can purchase a share with a friend, family member or business associate. Each of their names would go into the fractional ownership documents and they would collectively be treated as one entity by the management company and other owners. These joint buyers would have to determine for themselves how they would share the use and enjoyment of their Fractional Ownership share.
The appointed property management company will process and pay all related bills, collect condominium fees and provide all accounting services necessary to manage the property. The fractional owners share equally the annual costs for the operation and upkeep of the fractional property including the cost of maintaining the amenities, the cost of utilities plus any applicable property taxes and insurance.

Fractional Ownership at Pinelli Estate

The Pinelli Estate Fractional Ownership property is based on a clear model that is tried and tested. We encourage you to speak to existing owners as they are the best source of objective opinions as to why this is such a great idea.

For all Pinelli Estate properties, each buyer has a share (or shares) in the UK Limited Company that owns the property, making them collective owners. Each share corresponds to a number of weeks per year. Weeks are chosen by  the owners using a fair system based on a rotatiing priority. This ensure a fair share of usage between all owners.

Below are some questions that other buyers have asked, but once again just let us know if we have not answered your question here.

 

Yes, each property is wholly owned by a separate UK-registered company. The owners own the company through shares, the company owns the property.
There is a fixed number of shares available for each each property.
The actual number of shares depends on the property but for all current properties it equates to 4 or 5 weeks per share. Each owner has exclusive use of their property when they stay. Some current owners have multiple shares to provide them with more weeks exclusive use each year and also the option of enjoying rental income for unused weeks.
Yes. The weeks are allocated each year on a rotating priority basis, to ensure that each owner receives a fair choice of when they stay.
For all Pinelli Estate properties (except Il Rifugio) the system is based on a 4-week allocation, divided into 2 x 2-week periods. When you make your requests, they are prioritised as follows: - for the first 2-week period, based on the highest priority - for the second 2-week period, based on the reverse priority order (so lowest priority first) If you own more than one share, then the above is repeated for 3rd and 4th 2-week periods. Each year you move down up the priority rota, so everyone gets an opportunity to stay on their preferred weeks
Weeks may be exchanged with co-owners, used by friends and family or rented to a third party making this very flexibe.
Each share in the Pinelli Estate entitles you to a number of weeks exclusive residence at your home. Each property is different, but the standard model is a 4-week period.
Each property may have additional facilities provided - visit the property details for specific details.
For example, Il Rifugio includes the captained use of The Pinelli (Rizzardi luxury motor yacht) during your stay and free use (but not ownership) of approximately 30 acres of olive groves and vineyards.
If you wish to rent out some or all of your weeks, then the management company will assist you. The potential income from rental is very attractive and buying one or multiple shares allows you to take full advantage of the demand to stay at Pinelli Estate.
Current (2020) rental rates per week at the Pinelli Estate:
  • Low Season - Euro 5,000
  • High Season - Euro 10,500
  • Christmas / New Year - Euro 7,500
If the yacht sounds inviting, why not find out more about owning as share in that too ?
We strongly recommend an inspection visit and a trip to discover the area. The Pinelli Estate is expanding and currently includes the Cliento coast in Campania and Puglia; we can arrange transfers from the nearby airports and accommodation with hand-picked local hotels, offering special packages for visitors to the Pinelli Estate.

Legal and Financial FAQs

Some of your questions may relate to the legal aspects of purchasing at Pinelli Estate and we have covered a few here. We encourage you to speak to a lawyer who has experience of such purchases and can recommend two lawyers who have assisted previous buyers.

Just ask us for their contact details and we will be happy to provide.
 

There are no fees when purchasing your share, but there are the costs of :
UK Government stamp duty - currently 0.5% of the share purchase price
Your legal counsel

If you would like to discuss purchasing a share at the Pinelli Estate with London based Italian lawyer please let us know.

There is an annual maintenance fee which is shared equally between all of the members to cover the running costs of the property.
Yes. There is a mandatory 14 day cooling off period after you have paid your deposit (10% of share price) which will be returned in the unlikely event you decide not to proceed.
You are free to sell your share at any time, at a price that you agree with the purchasing party. Re-sale of a share in Pinelli Estate must always be offered to existing shareholders first. We would be more than happy to assist owners in the sale of their share if they wish to.
The annual amounts to be paid are based on an estimated annual operating budget for the fractional project including the delivery of all the stipulated member services. The operating budget will include all items required to adequately maintain the property such as insurance, swimming pool maintenance, utilities, internet, security, etc. Each fractional owner will be usually be responsible for his or her share of the operating budget.

As a guide, the budget set for Il Rifugio for 2020 is Euro €4,000 for each of the shareholders. This charge includes everything regarding the management, maintenance and bills of running the property.
Yes. The holding of the owner’s share is subject to the terms of a subscription agreement, the articles of association of the company and a set of house rules and regulations. These documents will be made available as part of the acquisition process. We regret that pets cannot be accommodated and it is illegal to smoke inside any of the properties.

Advantages of Pinelli Fractional Ownership

There are numerous advantages to buying a property at the Pinelli Estate, and here are just a few :

  • Economic sense - A luxury lifestyle in superb properties at a fraction of the ownership cost.
  • An efficient, well run management company to take care of all aspects of the running of the estate, including rental, so all you have to do is relax by the pool and soak up the sun.
  • Your share is a property asset like any other that can be transferred and sold.
  • Personalisation - when you arrive your own personal effects will be waiting for you
  • You'll never tire of the Mediterranean views of sea, olive groves and vineyards
  • A proven model - happy owners that will tell you about the benefits of collective ownership at the Pinelli Estate.
  • Buying multiple shares is also possible

Contact Us

RealPoint Property Ltd.
Registered in England and Wales.
Registered Number: 4753346
Web: www.realpointitaly.com
Beverley, East Yorkshire, UK
Tel: +44 (0)800 883 0460 (free call within UK, standard UK landline rates for international calls)


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