Fractional ownership

Fractional ownership also known as part ownership is not to be confused with time share.

A typical scenario is where three friends or family members decide to purchase the freehold of a property jointly. Each absolutely owns the freehold of one third or other agreed part of the freehold. Among the advantages are:

• less capital is tied up by each individual.
• a larger or more prestigious property may be purchased than where the group purchase individually.

Clearly a usage and management agreement has to be drawn up by somebody, such as a lawyer, qualified to do so, setting out the rights and obligations of the individual owners. This type of agreement is well established and is not unlike the articles of association of a private limited company that sets out the inter-relationship of the individual shareholders (owners).
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