Season Keys fractional ownership scheme

Sassy303

We resently went on a timeshare exchange holiday and were offered a fractional ownership scheme at in the Whitbarrow village in the Lake District through Seasons holidays. Part of the sales pitch was that at the end of the 16 year term we would likely get our investment of £26950 back as that was the commercial value of a 3 percent share of the apartment at the the moment and as property is increasing it would likely be more. Furthermore we would be able to rent out our A and B weeks each year for an income of around £1500 net per year. There is an addition service charge of £290 per year which would like go up by CPI each year.

My question, to the forum is, has anyone ever bought into this and gained their investment back or achieved a rental income?

Thank you for any insight you can give

Grumpelstiltskin

These are much cheaper.

http://www.timeshare-hypermarket.com/whitbarrow-village.aspx

So reading between the lines 2 words come to mind barge and pole.

richardw

It rains. Plenty of flights to drier lake holiday opportunities in Europe.

Sassy303

Thanks, I have gone to season and asked for examples of shares selling at the end of the 16 years term. This is where the sales person became very vague

zagfles

Yes, if you really do want a timeshare it's generally much cheaper to buy off an existing owner.

Surprised they let you go away and think about it. Most want you to sign up on the night so you don't have a chance to research it before buying.

Raymondo111

Sassy303 wrote: »

We resently went on a timeshare exchange holiday and were offered a fractional ownership scheme at in the Whitbarrow village in the Lake District through Seasons holidays. Part of the sales pitch was that at the end of the 16 year term we would likely get our investment of £26950 back as that was the commercial value of a 3 percent share of the apartment at the the moment and as property is increasing it would likely be more. Furthermore we would be able to rent out our A and B weeks each year for an income of around £1500 net per year. There is an addition service charge of £290 per year which would like go up by CPI each year.

My question, to the forum is, has anyone ever bought into this and gained their investment back or achieved a rental income?

Thank you for any insight you can give

So your outlay is £26,950 which they say represents 3%of the current value of the apartment so if you take £26,950 and multiply by 33 which then should represent 99% of the current value this would mean that the current value is £889,350.00 which doesn't ring true. Ok you get the use of the apartment during your 16 year term but you are still paying service fees for the privilege. So the amortised cost of the 16 years equates to £1974.38 per year plus what ever interest is being charged, you would probably do better finding something else apart from Timeshare which is definitely not an investment. My advice would be to stay well clear.

Alan_Bowen

Just want to support the view that timeshare is never an investment, it loses value faster than a car depreciates. It may look wonderful and the salesmen could sell snow to an Eskimo but you will never make a profit. So long as you keep that in mind and the fact that you are paying up front for something you might get tired of in the next 20 years then go ahead and buy but please, think carefully before you do.

Sassy303

Yes I have done the maths as well and they also have a 25% which means the apartment has a commercial value of around 1 million. This is why I am questioning it. We have a 14 day cooling off period which is giving me time to ask questions that we did not ask there. They definitely sold it as an investment

richardw

Sassy303 wrote: »

....

Yes I have done the maths as well and they also have a 25% which means the apartment has a commercial value of around 1 million. ...

They definitely sold it as an investment

It doesn't.

It isn't.

£290 pa can buy you flights some where every year.

If you want a timeshare, there are plenty on eBay starting at £1.
CAVEAT EMPTOR!

Alan_Bowen

So you are already in the cooling off period and not just thinking of buying it? Just look at the prices at Timeshare Hypermarket mentioned above, they are selling for between £1000 and £2000 a week, not £26000 and all those selling probably had the same story as you have been given. I beg you to reconsider, there are so many better things you could do with those funds, even more so if they have got you into a loan agreement.......

Sassy303

Thank You fro taking the time to respond,
We are not going ahead. I know I am too trusting but like I said they are saying that you get money back at the end of the term plus if you don't use the 2 weeks you can get rental income. I was just wondering if anyone had found this out to be true.