For anyone who owns a timeshare, or is thinking of investing in a timeshare, one of the key considerations is likely to be making sure that the purchase and subsequent ownership costs do not become a financial burden. Anyone new to the industry may not be familiar with the way things operate or the extent of the costs involved, so being aware as much as possible can really help to make sure that you are getting the best deal for your money.
Not all companies or resorts selling timeshare are the same, so you do have to look around and compare costs before making any big decisions. A recent report from the Timeshare Consumer Association highlighted that many timeshare resorts and hotels are charging over the top for the transfers of timeshares. When compared to the fees charged by Her Majesty’s Land Registry, the actual charge from many timeshare resorts is often thousands of per cent higher. In fact, on average, selected resorts charge around 587% more than the charges imposed by Her Majesty’s Land Registry.
One of the highest chargers, Island Residence, is said to charge 3,750% higher fees on transfer of timeshare compared to the Land Registry, with other high offenders including Regency Country Club at 2,500% higher, Petchey Leisure at 2,082% higher, as well as Wimpen and Anfi at 2,000% higher. The smallest charger was Melfort Village at 125% higher, with other low chargers including Belton Woods at 150% higher, and both the Harbour Club and El Capistrano Playa at 175%.
At both ends of the scale, the charges are still excessive. For even the lowest percentage difference, this equates to a cash equivalent of around £1,450 – which would make a nice amount of money for a decent holiday. The bottom line is, no matter what the resort or the charges, the actual amount of work undertaken in effecting a timeshare transfer is extremely small and does not warrant such an exorbitant charge.
What can you, therefore, do as a timeshare consumer? The lack of competition within the industry creates a monopoly situation, which makes it hard for the consumer to have much power over the current proceedings. What you can do, however, whether you are buying timeshare for the first time, or have said to yourself, that now is the time to sell my timeshare, is to be as aware as possible about what the different resorts charge in transfer fees, and do your homework to make sure you are getting the best deal that you possibly can.
- Tuesday, 02 December 2014 12:59