Own a ‘fraction’ of a new home

A fractional new home development in North Devon is proving popular with homebuyers despite the fact that the scheme has not yet been built.

Located 50m from a two mile stretch of sandy beach, 70% of phase one of Green Parks, Westward Ho! has been sold in just two weeks.

The popularity of this development reflects the strong demand holiday property in the region. Given that the South West accounts for around 20% of the UK's tourism market and with ‘staycations' becoming ever more popular, it's easy to see why.

New apartments at Westward Ho! start from £132,000 for full purchase or just £16,500 for a 1/8th fraction.

The fractional shared model of homeownership is an increasingly visible and popular way of buying a holiday home. It allows people to own a share in a holiday home, rather than own the whole property outright.

Fractional properties must offer a minimum 1/13th ownership share to qualify as a fractional purchase, while having a maximum of three months ownership share.

The purchase, unlike timeshare, is often a deeded ownership - fee simple or a deed of entitlement to the purchased share of a property at a single location.

Although the fractional property ownership concept in Britain is still in its infancy, the concept is extremely popular in some other countries, particularly in the USA.

Uniquely, the new home developer behind Green Parks is offering a 150% buy-back deal, 5% cashback and 5% guaranteed rental returns.

Green Parks' popularity has surprised the sales agent, Barrasford & Bird Worldwide.

Managing director Robin Barrasford comments: "We knew we had an exceptional investment opportunity but the speed at which the property investors have bought has surprised us. Both overseas and UK investors are incredibly enthusiastic about this seaside village. As an investment it makes clear financial sense; the figures stack up."