Fractional Ownership In Sandbanks

1 Introduction

In what is now the fourth most expensive real estate in the world, Sandbanks has for a while been one of the most sought after property hotspots in the UK. Prices in this area range from £800,000 to the recent purchase of ‘Harbour View’ at £10M. Most properties on the peninsula are either second homes or holiday homes and are normally outside the pockets of the everyday investor or holiday home buyer.

Vivid Homes has restyled two properties in Sandbanks, being fully furnished and completed to cater for the holiday home market and is offering these properties on a Shared Ownership basis. Shared Ownership is not timeshare, when a share of the property is purchased the individual owns part of the freehold, and can pass on to family members or even sell the share at the market value therefore not only using the property as a holiday home but taking advantage of the capital gain on the property.


2 The Fourth Dearest Place On The Planet and its in Dorset


Monday February 5, 2007
Extract from The Guardian
Sandbanks is not everyone's idea of an international property hotspot, but its superb waterside position - the world's second-largest natural harbour on one side, the English Channel on the other - has helped it climb to the top of the trophy-house tree. It boasts of being the world's fourth most expensive location and is synonymous with improbably opulent mansions such as Harbour View, which last year was tipped to be Sandbanks' first £10m house.
It is amazing that this overdeveloped strip should command such astronomical prices, but surely the novelty should have worn off by now? Not a bit of it. Last week's revelation that a 1960s bungalow on a half-acre site is being offered at £1.6m brought another collective gasp of astonishment. And this time the news was given added lustre by reports that Roman Abramovich's yacht was moored in Poole Harbour.
Why this perennial fascination with Sandbanks? Mostly, its image as Britain's Palm Springs. In 2000, Sandbanks property developer Tom Doyle sold a 1,200 sq ft apartment in Sandbanks for £1m; only Tokyo, Hong Kong and Belgravia boasted more expensive property. Doyle's coup put Sandbanks on the international map and started attracting the bling brigade, including a sprinkling of celebrities: cricketer Geoffrey Boycott, pop star Louise and her footballer husband Jamie Redknapp, and his father, manager Harry Redknapp.
And where bling leads, Russian billionaires follow. They have been slow coming to Sandbanks, but if anyone can lure them it's Doyle. "It takes a while to interest the Russians in anywhere further away from London than Sunningdale," he says. But the fact that he now publishes his lifestyle magazine Panache in Russian says a lot about his confidence in Sandbanks' appeal to the Russian market.
Sandbanks is no stranger to money: it was first developed in the 1930s by the aristocratic members of the Royal Motor Yacht Club. Some of those original houses survive, diffident reminders of the days when Sandbanks was populated by old money and pine trees, and 13 acres of the finest beachfront in England were sold for £13. A ridiculous figure, isn't it? As if you could find 13 empty acres on packed-solid Sandbanks.


In and around Sandbanks


The innovative developer Seven Developments supports the Poole Borough Council’s vision of redeveloping the Sandbanks Recreation Ground with an unmistakeable landmark for Sandbanks

A Life On The Water


Sandbanks houses some of the best watersports facilities in the country with its natural harbour. From the world renown Sunseeker Luxury Motor Boats to the Royal Motor Yacht Club based on Sandbanks, Poole harbour is the home of many water based leisure activities.

Dining Out



With literally hundreds of Hotels & Restaurants around Sandbanks, Poole and Bournemouth you will be spoilt for choice.


3 The Properties For Sale

Vivid Homes are proud to present two beautifully presented holiday homes, fully furnished and now ready for Fractional Ownership.


19 Seacombe Road, Sandbanks Dorset, UK




Description

A wonderful opportunity to buy a share in an immaculate and stylishly refurbished freehold house in the heart of the Sandbanks Peninsula. Beautifully furnished to a high standard of specification, this contemporary residence offers a unique entertaining space whilst retaining four double bedrooms as well as a separate study. Boasting approximately two thousand square feet over two floors, No. 19, has been subject to a comprehensive restoration programme, offering a total ‘turn-key’ package to a variety of potential buyers. Situated within a tree-lined and most sought after location, the property enjoys a number of modern features such as ‘ipod’ docking stations and integrated plasma televisions. The award winning beaches of Sandbanks and the shores of Poole Harbour are within easy reach of the property.

Galleried reception hall, open plan kitchen / breakfast room / lounge, dining room, two double ground floor ensuite bedrooms, cloakroom, galleried first floor landing, master bedroom suite comprising, luxury en suite shower room, dressing area, private sun balcony, further first floor fitted double bedroom, luxury family bathroom, fully fitted study, professionally landscaped front garden & rear terracing, block pavier driveway, electronically operated front security gates, fully furnished throughout



Specifications

· Approximately 2,000 sq ft of bright and spacious accommodation throughout
· Delightful bespoke ‘Italian’ kitchen with integrated appliances and solid work surfaces
· Luxuriously appointed family bathroom and ensuite shower rooms.
· Integrated 42” plasma television and sound system to lounge
· Integrated ‘ipod’ dock piping music throughout
· Double glazed window and door units throughout
· Master bedroom suite with luxury en suite shower room and dressing area
· Private sun balcony to master bedroom
· Fully fitted first floor study
· Double height ground floor bedrooms
· Bespoke painted artwork throughout
· Halogen downlighters to principle rooms
· Professionally landscaped gardens and low maintenance rear decked terrace
· Electronically operated security gates
· Block pavier driveway with ample off road parking
· ‘Vivid Homes’ property maintenance contract with Fractional Ownership

9 Salter Road, Sandbanks, Dorset, UK


Description
Sympathetically restored and beautifully furnished to a high standard of specification, this ‘New England’ style property offers a new concept on coastal living. Boasting approximately fifteen hundred square feet over two floors, No. 9, has been subject to a comprehensive restoration programme, offering a total ‘turn-key’ package to a variety of potential buyers. Situated within a delightful and most sought after location, the property enjoys a number of modern features and has the benefit of its own private swimming pool. The award winning beaches of Sandbanks and the shores of Poole Harbour are within easy reach of the property.
Reception hall, kitchen, lounge, conservatory/dining room, two double ground floor bedrooms, family shower room, first floor master bedroom suite comprising, luxury en suite bath/shower room, dressing room, separate wc and lounge area, professionally landscaped front & rear gardens, private swimming pool, block pavier driveway, detached garage, electronically operated front security gates,


Specifications


· Approximately 1,500 sq ft of bright and spacious accommodation throughout
· Delightful bespoke ‘Italian’ kitchen with integrated stainless steel appliances and granite work surfaces
· Luxuriously appointed bathrooms/shower rooms.
· Integrated 48” plasma television to lounge
· Integrated 28” LCD television to master bedroom
· UPVC double glazed window and door units throughout
· Master bedroom suite with luxury en suite shower room and dressing room
· Halogen downlighters to principle rooms
· Italian oak panelled internal doors
· Professionally landscaped gardens and low maintenance decked terraces
· Electronically operated security gates
· Block pavier driveway with ample off road parking
· Detached garage with up and over door
· Twelve month property maintenance contract

4 Shared Ownership
You may have heard the term but what exactly does it imply? Simply stated, shared ownership is the opportunity for buyers to own, by deed, and be responsible for, the exact amount of time they would like to spend at their second home. Each owner gets an equal amount of time at the residence and they all share the carrying cost. All the details of maintaining the property are taken care of by Vivid Homes Property Management, leaving the owners free to enjoy their holidays to their fullest. A “Use Plan” is established which creates a hassle-free and equitable way to determine who uses the residence when. There are many other benefits as well, which you will discover as you read further.

Why
Does it really make economic sense to purchase outright a second or third home for vacation purposes? Statistics show that most second or third-home owners stay between 10 and 17 days annually at their holiday home. Yet, the owner is responsible for the worry, tax, security, maintenance and management for that home year-round. Purchasers of shared ownership see it as an ideal alternative to traditional vacation real estate ownership. They know that they only stay only a few weeks each year in their vacation home and don’t want to pay any more than necessary to enjoy it. However, they do want the value, equity, capital gain and other benefits of second-home ownership. Shared ownership provides just that.
These benefits include:

· An Appreciable Real Estate Investment
· A Fraction of the Price!
· A Superior Location and Superior Amenities
· No Maintenance Responsibility
· Frees funds to purchase other shared properties in other locations.

Many shared ownership purchasers could easily afford full ownership but choose a shared property because it fits their needs so well — especially for those that have limited time to spend at their holiday home. The cost-benefit ratio is very appealing.


The Benefits of Shared Ownership with Vivid Homes
· You have legal ownership of the property
· Your property will be fully furnished
· Your property will be fully managed each year
· Your property will be managed by Vivid Homes the company that owns the property enabling you to buy with confidence
· Shared annual ownership costs
· Fully transferable title through company shares to sell or pass on to future generations
· 4 Year construction guarantee
· Vivid Homes retains a share equivalent to four weeks for maintenance downtime ensuring we have a vested interest in the property. We are always available on the end of the telephone.
The “Use Plan”
With an 1/8th plan, you are entitled to 6.5 weeks per year. Vivid Homes retains 0.5 weeks from each shareholder to carry out annual maintenance and deep cleaning. The Use Plan will be provided on initial contact.


5 Questions & Answers

Q. Is this a ‘Timeshare’ Scheme?
A. Lets get this one out of the way - No is the straight answer and here is why.
A timeshare is an asset sharing scheme whereby one parts with their hard-earned cash in return for time in a particular holiday resort, you are only buying the use of the property and in comparison to fractional luxury properties they are often of a lower standard. The main reason for timeshare horror stories is that when it comes to reselling the share and recouping the original investment (assuming that one has not been pushed into buying a dingy broom cupboard in the back of beyond where no one wants to go!) is that the small-print dictates a remarketing cost that often wipes out a large percentage of any possible return.
On the shared ownership side it is generally only the usual estate agents fees apply as per any regular real estate transaction. Furthermore, shared ownership is a real property ownership right rather than just a usage right as with timeshares. In short this means that if the property price increases then you reap the benefit of any capital gain.

Q. Who looks after the property?
A. Vivid Homes are a small shareholder. Vivid Homes are based inBournemouth & Poole and will always be on hand.

Q. Who designs the interior and furnishings?
A. Every house and apartment is furnished under the direction of our in house interior designer. Your property is meticulously appointed with hundreds of items ranging from plasma flat screen TV's to toasters. Forget the time and expense needed to furnish your holiday getaway – Vivid Homes ensures that it's all complete, and can even include cars and transport if required.

Q. What management services come with the package?
A. Vivid Homes is available to contact 7 days a week 9am – 7pm and there is also a 24-hr emergency call-out available to fix any household problems. Our staff provide an on-the-spot service to make your stay as enjoyable as possible. The property will be ready on time and properly cleaned. You will have fresh-cut flowers arranged in the house. We can recommend a range of local services and point you in the right direction for the latest and best places to eat, hire a boat, anything you may need. This pack will be found in the property on arrival.

Q. How many cleanings does the fee include?
A. It varies. We clean the properties after every stay and as required. The cleaning is included in the annual maintenance charge.

Q. What happens if I decide to sell?
A. The value of your share would be the percentage relating to the number of owners and this would equate to a percentage of the property value. You would of course be entitled to sell your share to whoever wants to buy. This is a basic principal of our scheme as we expect owners to build a portfolio of investments with several properties in several hotspots.

Q. How are the operating costs split between the owners?
A. Running costs are shared equally between the owners. This reduces the financial burden of owning an expensive property on your own. The annual service which includes, cleanings, maintenance and community fees are paid in advance and the charge is set by each group of owners on the advice of Vivid Homes, and then split equally and paid in advance. Only electric is paid as per amount consumed. Our function is to ensure that the house is properly cleaned after each use and prepared for the next owner. We also pay bills, schedule repairs and through the management company and company solicitor keep the books on your behalf.

Q. Do we pay Vivid Homes a monthly fee?
A. No. The annual service charge includes all fees payable. As mentioned previously only electric costs pertaining to your period of time will be billed.

Q. Can we own more than one share?
A. Yes you can own as many as you like with the corresponding number of entitlement weeks.

Q. Do you expect price increases to match traditional home increases?
A. Absolutely yes. Owners hold a share or shares in a company and that company's asset is the property. As the value of the property rises, so does the share price. Sandbanks has exceptional historical growth and is expected to continue as one of the hotspots of the world.

Q. Can I rent out my weeks?
A. Yes, you own your share.

Q. How much rent can I charge?
A. What ever the market rate is for your property. Obviously in peak season the income will be higher. Importantly your investment property should take into consideration the local amenities such as entertainment, shopping, access, facilities which will determine the rental value. Vivid Homes can handle all rentals for you through a local lettings agent in Sandbanks.

Q. Can you recommend a solicitor to oversee conveyance who is familiar with Fractional Ownership?
A. Yes we have a partner who can deal with this for you.

Q. Must the owners know each other?
A. Unless you are thinking of bringing friends in with you to buy the property, it's unlikely that you'll know your co-owners before you purchase. The rules and management services keep the property in smooth running order. There is no need to meet the other owners unless you want to. However, we are careful not to introduce unsuitable or incompatible owners into a purchase.