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Thinking of purchasing a holiday home with 3 other families - what will we need to consider

5 replies

knakered · 16/10/2007 15:50

WE are thinking of buyinga share of a holiday prpoerty with other families ...what practical and legal issues should we consider

OP posts:
purpleturtle · 16/10/2007 16:02

What would you do if one family wanted to sell their share?

Who's responsible for it overall? Does this give them a larger share?

These are just my first thoughts, based on no experience. I'd want to be cautious though.

ninedragons · 17/10/2007 05:20

If one family wants to sell their share, do the other two families get first refusal, or right to veto another party?

How is the valuation done if one family does need to sell its share?

Who gets what weeks - Christmas, school hols etc? What happens if those weeks aren't used? can they be rolled over to the next year?

If it's overseas, it could be the case that you'd need to consider whether disputes would be settled under English law or the law of that country (I don't know whether you can even choose your own jurisdiction, but I'd check).

Who is liable if someone f**ks up and it turns out that the place was built illegally, doesn't have proper title deeds etc? There are an awful lot of sob stories around about people who bought places in Europe and have had them confiscated or bulldozed.

Personally I wouldn't - nothing sours a friendship like money. If you do, each party must get its own lawyer involved from the outset. It's definitely not something that can be arranged over a dinner party.

ninedragons · 17/10/2007 05:25

A few more:

Who is liable for breakages/damage? All three parties or just the party that did it?

Can time in the house be passed on to other friends or can it only be used by the three owners?

Can the families bring other people with them?

I'd set up a fund to pay for maintenance, legal, insurance, etc, and make it clear from the outset how much each family had to contribute and make it a direct debit on a set date. Could get awkward chasing people for money when the garage suddenly collapses.

What do you do if there's a very expensive problem (e.g. subsidence, flood)? Can everyone be sure they'll be able to find an extra load of money at short notice?

dooley1 · 17/10/2007 07:41

It sounds a bit of a nightamre tbh
After you've decided who has what weeks someone is bound to change their minds about wanting a different week
If you go on holiday with your family then one of them won't be able to make the week you've got and the other family won't want to change their week etc etc
Are all the kids school age? Because if not circumstances will change when everyone has kids at school and are restricted to school holidays only
And eventualy one family will out grow the holiday or just become bored with going to the same place every year

TwigorTreat · 17/10/2007 07:49

you will all want to holiday at exactly the same time .. particularly school holidays

god I wouldn't do this if you paid me .. not even with family

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