How to sell part of your holiday home
A second home is the perfect escape. But it can also mean extra responsibility and a substantial financial commitment. If you are only able to use your vacation property for a few weeks of the year you may feel it isn’t worth the expenditure – but still, is the prospect of selling it altogether too much to contemplate? If releasing some capital from your real estate investment – as well as being able to share some of the running costs with others – sounds appealing, you may wish to consider a partial sale and co-ownership.
Partially selling your holiday home will enable you to optimize the ownership of your home. Not only will you share the costs with like-minded owners, but you will also get to enjoy the carefree experience of a fully managed second home. We’ll take care of all the details, making sure it is a smooth transition.
How does the selling process work with Lazazu?
We will meet with you to answer any questions you have on our offering and confirm that this option is without doubt the right fit for you and your setup. It is not in our or your interests to have any regret later on.
We then consider the details of your home and whether or not it fits our offering and what our customers are looking for when buying a holiday home. We visit the property with you and agree on the price point at which the shares in the home will be marketed, and then show and market the home to our customer base.
We vet the potential buyers, who are like-minded second home owners who will take good care of the home just as you do. They all sign a code of conduct upon the purchase of their share.
We proceed with the acquisition process if there is sufficient interest in the home, and transfer the home ownership from you to a company. Ownership of the home is divided in increments of 1/8 and you can chose to retain anywhere from 1/8 to 4/8 of your home. Each 1/8 share equates to 45 days of exclusive occupancy of the home per year.
What happens to the furniture decor currently in the home?
We make use of professional interior designers who will discuss the homes interior design and any upgrades with you in detail. We will retain and purchase any items from you that fit well with the targeted design.
Can the remaining shares in the home be sold in the future?
After a period of 12 months you are free to sell your remaining shares in the home if you wish to do so. Other owners of the property have a right of first refusal to purchase the shares.
What information do we need ahead of the sale?
The more information we have upfront, the faster and more efficiently we can work, and the less you will need to think about. The following information is what we need at the beginning of the process:
– The location of the home, ideally with the specific address.
– The basic details of the home: the size of the home and the land, the number of bedrooms, whether there is a swimming pool and any other significant features (such as a tennis court), and the condition of the home (for instance, when it was last renovated)
– The asking price of the entire home, if this is something you know already
– How many shares in the home you would like to retain, in increments of ⅛ up to a maximum of 4/8
– A link to the advertisement if the home is already for sale
– If it is not already on the market, any initial pictures you are willing to share of the home
– How the home is owned – directly or indirectly via a corporate structure and if the latter, the details of the type of holding company, its ownership and whether it holds any other assets besides the home.
What needs to be prepared for the sale?
The answer to this is very little from your side. We will create the relevant marketing materials, arrange viewings and follow up with clients, and we take care of the legal procedures of the sale.
What happens after the sale?
After the closing we make any necessary repairs and design adjustments to the home, and you continue to use and enjoy it, with the only difference that you will use our booking system to reserve the stay nights allocated to you based on the number of shares you chose to keep.
Owning a holiday home should be a pleasure and a joy. If it’s anything less than that, consider talking to our team at Lazazu about helping you to find the perfect co-owners and manage all operational and administrative aspects of your home for you.
Discover more about Lazazu:
How Lazazu co-ownership works | Frequently asked questions about shared holiday homes | The benefits of fractional ownership | Browse Lazazu’s selection of second homes | The difference between timeshare and co-ownership