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Types of Contract

Fractional/Private Residence/Destination Clubs

Fractional Ownership within a Private Residence/Destination Club means that clients are buying a partial ownership. These resorts tend to be more upscale and pricey. Told its not timeshare but it sounds like Timeshare… Guess what…it is! The main difference with this type is the quality of the property and the number of weeks sold. These type of ownership shares can be divided from anything into 1 person to 20. The amount of share is lower than usual fractional timeshare, but can vary completely dependent on contract. Each owner will have equal shares of the property.

These are usually divided up by the ‘management company’ which deals with the resorts schedules and maintenance fees. Another huge difference between this type of timeshare and normal ones is the price. While usual timeshares are bought for a few thousand pounds, these type of timeshares are purchased for £10,000+. This does not include the hidden maintenance fees and financing fees.

For example: 6 Couples buy into a Fractional Private residence, costings, amount of time spend there and access to amenities will all be exactly the same for each of these couples. They will own the exact same amount of the property.

Destination Clubs can vary in places, this is usually a variety of different locations which the buyers have access to, therefore they do not physically own a piece of the ‘destination’.


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Destination Clubs tend to be sold as ‘exclusive destinations’ which isn’t always true for some of the destinations on the portfolio. As always these destinations are ‘Subject to availability’ which means the destination which was promised upon selling might not be available at any point. Many clients come to us with unused and unwanted timeshares, which have caused more issues for them than pleasure.

For Example: You have a Timeshare within a Destination Club/Holiday club in a portfolio of ‘luxurious’ resorts all around the world. You do not own any of these, you have access to these, for a set amount of time. Subject to availability.


Leasehold Ownership is the same idea as Inperpetuity, but with leasehold it isn’t in perpetuity. Usually this has a specified expiry date, these dates are usually a large amount of years which clients aren’t happy to have. This type of Timeshare has been very popular in the past, with clients not realising just how long they were tied into a timeshare for with associated factor fees and other running costs.

Right-to-Use (‘RTU’)

With Right-to-use Timeshare, you have exactly what it says, just ‘the right to use’ a specific apartment/unit or unit size. You do not own a part of this property at any point. The length of these contracts will vary but mainly consist of 20-30 years. There after the volume of weeks you have ‘purchased’ are reverted back to the owner/developer. The legal ownership is typically vested in a trust company. This type of timeshare has been an issue for many of our clients as they soon realise that what they have been sold, no longer suites them, isn’t as accessible as first thought, unable to keep up with costs and many other reasons.

Points/Club Membership

The points system varies within each club and contract. The volume of points you have depends on which club you can go to and for how long. These points are saved and spent like currency. Volume of points for each unit/week vary and depend on factors such as: Location, desirability, time of year, size etc. These points can be used in days/weeks/places all depending on the amount of points accumulated. Many clients have been unaware they are buying into a ‘club’ where there are many other resorts. Usually sold at specific destination which they are told they can holiday at, only to find out they don’t have enough points of the resort they were promised.

An Example of Points Club would be that you chose a 2 bed apartment in a popular area of Spain in the summer. This would be converted into value in points. You will receive these points yearly and can be accumulated. Usually the value of points is less than the ‘worth’ of the stay which means clients usually have to miss a year to accumulate points to go to the better resort/resort of choice. This means that clients are often disheartened as the great points system they were sold, actually turns out to be a disappointment when they don’t have enough points to go to the resort which they were promised on a yearly basis. This is also ‘subject to availability’ which means it is never guaranteed that after saving up your points that you will then get where and when you want to go.

Holiday Clubs

Being part of a Holiday Club means that you pay a large one off joining fee to become a member of these types of clubs. Normally these are sold with the promise of discounted prices cheaper than anywhere else, high availability and high quality accommodation. In reality, high street and internet prices can very often beat the price you are receiving from this holiday club. They are also subject to availability. The accommodation standards vary and cannot be guaranteed in all places. After spending thousands to become a member of these types of clubs, clients are almost always left disappointed and angry with the way these were sold with no guarantee of anything the salesperson originally promised.

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