Shares in a property

Has anyone successfully sold shares in their property? I have a beach side apartment and although I would lik rto keep it I cannot afford to keep the whole apartment. I thought of offering quarter shares in it which would generate enough for me to keep a quarter share in it. The property has a mortgage attached to it so this is another way of removing this.

Any advice, information greatly appreciated.

Brian

Hi Brian and welcome to Eye on Spain.

I don't know anyone that has done this although it's a form of fractional ownership which a few agents were pushing for a while here.

You would need a legally binding agreement between all parties concerned regarding who could use the property and when, payment of bills, getting stuff fixed, etc.  What if someone doesn't pay their share of the community fees or maintenance costs?

It could be a lot of hassle to be honest.  I would give it some more thought if I were you

Justin

thanks for that Justin. I need to sort out quite a few things from your reply. I am advertyising it at present either as an outright sale or fractional ownership with another avertising medium.

Thanks so much for your reply, I need to do some more homework!

Brian

Hi Brian, please be careful and do as much research as you can.  It can be horrible when people sharing a property fall out as well as all of the points that Justin has raised.

A few other things to check out are the additional charges for changing names on mortgages.  Sometimes the provider will insist on cancelling the existing mortgage and applying for a new one - at a % of the total cost - more money.  Tax implications on each person and what happens in default.  All debts in Spain remain with the property not the person, so it could be quite precarious without the legal binding agreement. 

Maybe Smiley or one of EOS other mortgage experts can help you more.  Good luck.