Frequently Asked Questions

Why Villa Fusion

What is Villa Fusion?

We specialise in offering a unique ‘Community of Owners’ product in the Costa Blanca where we bring 6 buyers to purchase the property together in their own names. Villa Fusion offer the ability to purchase a holiday home for a fraction of the cost and you also benefit from sharing the reduced running cost of the property.

Why purchase a 'Community of Owners' property with Villa Fusion?

Clarity, Transparency and Trust.

CLARITY in purchasing the property in your own name. No fancy company structure where you have no idea what you are buying. With Villa Fusion you have the clear Title to the property. Your name appears on the Title Deed of the property.

TRANSPARENCY in running the property. You are in control of the property management and expenditure. You decide what your yearly management costs are and if you want to rent out your usage or not.

TRUST in the simple straight-forward system that we have in place. We fully understand that you want to be able to enjoy a stress free purchase of your property share. We are the only company in Spain that offers you the ability to purchase without any hidden charges or surprises. Villa Fusion have created a very simple, clear way to purchase a luxury property so you can enjoy time in the sun at a fraction of the cost.

Villa Fusion Legal Queries

What is the legal structure used to purchase the individual shares of the property?

The clearest and best way to purchase your share in our properties is to purchase it in your own name. This means your name is on the Original Title Deed to the property itself. This gives you excellent piece of mind knowing that you are purchasing the physical property itself and not part of a company.

How many shares are in each property?

We only sell 6 shares in each property so that the owners have 8 allocated weeks to use as they please. The average Holiday home is used by its owners on average between 17 and 30 days per year therefore when you purchase a share you have double the amount of days a standard Holiday home is used for.

Can I get a mortgage on a Fusion property?

On some of our properties we have prearranged mortgages on the shares already, which will give you the ability to either use the mortgage facility that is in place or have this removed. If you do decide you wish to take advantage of the mortgage facility that is in place you will still need to meet the lenders lending criteria.

Do I need to pay a deposit to reserve a Fusion property?

There is standard reservation fee of 6000 Euros paid when you reserve the property. When you sign the ‘Purchase Contract’ and the ‘Fusion Rules and Regulations contract’ you will then need to pay the first instalment minus the 6000 Euro reservation fee.

What are the payment terms?

This comes down to the individual share offering. Generally if the property is a renovation project then the payment terms are 25% on signing of the Fusion Agreement contract, then a further 25% after three months, followed by a final 50% on completion of the project. However this can vary from project to project.

If the Fusion project is a new build project then the payment terms are generally 6 payments throughout the build, which is standard practice. The first payment would be larger i.e. 50% then 5 other payments of 10% throughout the build.

Am I purchasing a time-share or a Fractional product?

It is very important to understand the distinction between Time-Share or Fractional product and ‘Villa Fusion’. Time-share you are purchasing time usage not specifically for one property or resort. With Fractional Ownership you normally buy shares in a business and these equate to your usage. It is normally designed to be complicated and involves a rental return or guaranteed buy backs etc. These are usually worked into the price you pay at the beginning. With Villa Fusion you are the physical owner of the property with 5 other people. It is your property with your name on the property Title Deeds. Villa Fusion has been designed from the ground up to be crystal clear and as transparent as possible for all the owners. You purchased as a ‘community of owners’ just as if you where purchasing an apartment in an urbanisation. You have the same rules and regulations and ownership of communal parts. The only difference is instead of owning your apartment you own a part of the entire villa.

This is the first time that this product has been designed with the owner in mind. After all is this not the most important person in the entire process.

Administration and Management

Who manages the community of owners on a day-to-day basis?

Each property has an allocated manager/administrator that looks after the running of the property. There is a 15% fee attributed to this running cost. It is essential to us that the owners of our luxury properties do not have to worry about the usual chores normally associated with property ownership. You have the ability to agree the level of service you wish for your properties but the ‘standard’ and expected services can be split between:

Changeovers, cleaning and repair – this should not just include routine cleaning and repairs and dealing with changeovers, including inventory checking, but also liaising with the owners regarding more significant repairs and possibly improvements to the property. The manager should also be responsible for arranging gardening, pool cleaning and air conditioning maintenance.

Accounting – this function should include collecting annual payments from the owners, preparing management accounts and budgets, payment of all bills and arranging all insurances. The manager will also organise and update the usage calendar so they are kept right up to date.

What is the management fee I would need to pay?

The management fees will vary from project to project however they will normally range from 1500 to 2000 Euros per year. This is paid in advance per year so there are funds to pay the relevant bills that come in. The types of outgoings are:

Cleaning, repairs, dealing with changeovers, garden, pool cleaning, air-conditioning maintenance, accounting i.e. collecting annual payments, preparing the annual accounts, payment of bills, arranging insurances; utility bills including electricity, water, gas, oil, telephone, broadband; property tax, rates, waste disposal and general maintenance.

It is very important to understand that in every process there is complete transparency. If you wish to see the expenditures for your property at any time the manager will forward this to you on request.

Is there any storage at the Fusion property for personal effects?

Yes there is a store area allocated in each of the villa where each owner will have a lockable storage box for personal possessions. However we can also organised a large storage unit in Benissa or Denia just as you come off the motorway where you can store further items like bicycles, suitcases, water sports equipments etc.

Rentals

Can I rent out my weeks to cover the yearly management fees?

Yes you are able to rent out your weeks as you wish. Each one of our Villa Fusion offerings has an allocated rental agency Partner to not only manage your rentals however to also organise the changeovers, cleaning etc. Effectively you can have a holiday home where the yearly costs are covered by renting out the property a couple of weeks.

Selling Your Villa Fusion Shares

Can I resell my part at any time?

Yes you can sell your part of the property at any time. First option is given to the other owners to see if they wish to purchase your share and if not then you are free to market your share for sale. As you are on the property deeds it is simple to sell your part to a new buyer.

Is there an exit strategy in place for Fusion owners?

Villa Fusion offers two transparent exit strategies for your shared ownership investment:
Option 1: Since you are 1/6 owner of the property you can simply ask our real estate partner to resell your part of the property. The new owner will buy you out of your portion of the property and they will continue in your place.
Option 2: After an 8 year period all the owners are contractually obligated to sell the entire property and each owner will receive their share including the relevant capital growth of their share. We have set the maximum ownership of the property at eight years since this is when the asset would need to be refreshed and refurnished. It is also a sensible period of time for the owners to enjoy the property and then if you wish to upgrade or move on to a new holiday home or destination you are free to do so.
Both options are clearly defined exit strategies and give you the reassurance that no matter what you are free to sell on your share at anytime and if you wish to use the property for the full 8 years the entire property is sold and you get your initial investment plus the capital growth.

Extra Queries

Am I able to have guests use the property if I cannot use some of my weeks?

Yes you can certainly have your guests use your property during the weeks that you have allocated. There are some rules in place i.e. number of guests, keeping noise down, looking after the asset, payment if your guest damage the property etc however yes you can have your guests use the property.

Who is buying this type of Shared Ownership property?

A typical buyer of a shared property is aged 50+ (often referred to as ‘baby boomers’) who are attracted by the idea of holidaying with their children and grandchildren. It should also be noted that the ‘community of owners’ concept also attracts not only buyers who are unable to afford to purchase a second home outright, but also buyers who could afford to purchase outright but cannot justify the expense and hassle involved in owning an overseas property they may only visit a few weeks a year. Further, from our experience of dealing with this product we have seen an increasing number of buyers are in the 35 – 50 age group.

Why should I consider buying a Villa Fusion Shared Ownership property?

The advantages are very clear to see. You have the ability to either purchase a Villa Fusion small 2 bedroom apartment or bungalow in the local area which would normally be older and in an urbanisation where there may or may not be a pool. You will use it for 17 to 30 days and potentially need to rent it out to cover the running costs.

Or you have the ability to purchase a 6th share in a luxury property, which is far larger with its own pool and use it for 8 weeks a year. All the buying costs are shared with 5 other people; the running costs are shared; and the likelihood of having to rent out the property is diminished since again the running costs are shared; leaves you the ability to invest your funds in a number of international destinations rather than purchasing one luxury villa outright in one resort, you split over a number of properties in different areas.

What usage system do you use to make sure that each owner has the fairest allocation of weeks?

There are 2 types of shares on our properties. You have the ability to pay a small premium and get guaranteed English school holidays or decide to go out of the school holiday calendar and enjoy a saving.

Villa Fusion use a Hybrid usage system to give the very best program available. Each owner is given a specific 2 week summer period which is fixed year on year. This ensuring consistency and predictability. Then you have the ability to book the 2 weeks during mid season on a rotation basis and the remaining 4 weeks in the off peak season as and when they wish.

Each owner has 2 weeks during the peak months of June, July and August, a further 2 weeks during April and May and September, with the remaining months (November to March inclusive) available for owners’ personal use on a reservation system basis, either in advance or on short notice. This shared ownership system strikes an attractive balance between flexibility and certainty. Further it would offer maximum flexibility since we allow owners to swap their allocated weeks with each other.

Villa Fusion Ownership

More queries about your Second Home?

Please contact us at our Villa Fusion email!