Fractional Property Investment

Co-own a luxury vacation home in London

LCP Private Office makes co-ownership simple — you own a spectacular second home in London for 1/8 of the cost, and we manage it.

In this blog, learn how fractional property investment lets you own shares of prime UK real estate with lower entry costs, providing a unique opportunity to diversify your portfolio. Discover pros & cons and get started with LCP Private Office.

An Introduction to Fractional Property Investing 

Fractional property investment allows you to co-own a luxury second home by purchasing 1/8 (or more) share of the property, with exclusive access to your home for certain periods of the year.

Unlike a timeshare, fractional investment is true ownership, with the ability to use the property when convenient for you and your loved ones. Our fully managed service enables you to own a bigger and better holiday home to make memories in – for less hassle and cost.

You choose the amount of ownership that works for you and enjoy a luxury property that might be out of reach if you were purchasing on your own. You also choose when and how long you stay within a certain annual allowance and allocation throughout the year, dependant on your ownership share.

This model of fractional investment blends luxury real estate with the ease of co-ownership. The interior-designed and professionally managed homes are ready and waiting for you to create once in a lifetime experiences. There is nothing like sharing your second home with friends and family in one of the most sought-after locations in the world.

Is fractional ownership in real estate the right investment option for you?

Exceptional, turnkey homes

The luxury homes you can purchase are refurbished to a high-end specification and comprise premium furnishings, to make your stay feel as luxurious and comfortable as possible. They reflect the heritage and character found within London, allowing you to own your own piece of this history.

London’s most desirable neighbourhoods

The homes are located in London’s most desirable neighbourhoods, to allow you to make the most of the fantastic array of amenities on your doorstep. You will have access to the best shopping, culture and green spaces the Capital has to offer.

Fully managed service

You will be supported by a dedicated Property Management team who provide service before, during and after your stay. We fully manage every aspect of your home, from cleaning and maintenance to security, so it is always ready for you to enjoy and you don’t have to worry about it being looked after when you aren’t there.

Simple booking system

Booking a stay is easy via our booking App. You can enjoy your home for an average of 6-7 times during the year. It’s your home, so you choose when and how long you want to stay. Book stays with short notice, or in advance. The system makes it flexible and fair for all co-owners.

Selling your share

At any time, fractional property owners can engage LCP to sell their share in the property holding company in line with the corporate structure and fractional ownership agreement. To ensure transparency in your investment strategy, annual red book valuations are taken on the property and the company to determine an up-to-date valuation of the shares. Given the structure of the company, there will be no Capital Gains Tax payable. All buyers should consult with a tax advisor to understand how this ownership structure affect them as an individual.

The advantages of Fractional Property Investment

Less upfront costs

Because you will be a co-owner, you only need to fund 1/8 of the property value, giving you access to an array of luxury homes that you may not ordinarily be able to afford if you were buying alone. You can co-own a high value holiday home in a highly desirable location in London. You will also avoid the high SDLT rate for a residential purchase and are unlikely to be subject to Capital Gains Tax, providing less than 25% is owned by one individual. There is only a 0.5% buyers’ premium on the purchase of the initial shares. Afterwards, you are a co-owner of the company who own the property.

High-end interiors

The properties owned by our clients with have the usual LCP Private Office Design and Refurbishment service. We ensure the property is spatially optimised for the best flow of the space and ensure creative storage solutions allow for the most comfortable stay. The property will also benefit from the best-in-class amenities, appliances and entertaining spaces. Luxurious furnishings will be supplied by the usual UK suppliers LCP have relied upon for decades with trademark styling and features. It will be a home to remember and share with your loved ones.

Shared maintenance costs

The properties owned by our clients with have the usual LCP Private Office Design and Refurbishment service. We ensure the property is spatially optimised for the best flow of the space and ensure creative storage solutions allow for the most comfortable stay. The property will also benefit from the best-in-class amenities, appliances and entertaining spaces. Luxurious furnishings will be supplied by the usual UK suppliers LCP have relied upon for decades with trademark styling and features. It will be a home to remember and share with your loved ones.

Use your home as you wish

As an equitable co-owner, you will have access to use your home when you wish for an average of 6-7 times during the year. The simple booking system makes it easy and fair for all co-owners. There will always be plentiful time for our owners to use and take advantage of their piece of Prime Central London in a fair and equitable way.

Management taken care of

You don’t need to worry about any of the usual responsibilities that come with owning and running a home, such as cleaning, maintenance and security, because our Property Management team take care of it all. You can relax and enjoy turnkey convenience, knowing your home will always be ready for you and looked after when you’re not using it. Your dedicated property manager will ensure that there are no contractors and builders in the property when you are trying to relax and unwind on your trip to London.

Cost-neutral home

You will also benefit from a rental income strategy whilst the property is not in use. The home will be rented out for periods of time in order to generate property returns to build a fund to pay for upkeep and proactive repairs. This process will be fully managed and aligned with the wishes and expectations of the co-owners. The home will only rented out on a short-term basis to a select group of corporates and HNW tourists. Alongside choosing the right tenants, we also vet all other owners, to ensure that we have a like-minded group interested in real estate investment.

Is now the time to consider Fractional Investment in real estate?

With the Central London property market experiencing a challenging time over recent years, we have seen a reduction in the volume of transactions, high borrowing costs and global uncertainty. Prior to 2015 (considered by many to be the peak of the market), values doubled every 8 years and the market was showing no sign of slowing down. Buyers entering the market now can access property for around 15% – 20% below these 2015 peak values, providing a willing seller can be sourced.

LCP have experience over decades of asset acquisitions for Private Clients in central London. In this low transaction market, we have only seen marginal changes in property values since 2020 and therefore property bought at a discount, with the need for complete refurbishment, tends to have the best chance of success over the years.

London continues to be a scarce market and that scarcity allows for long term appreciation. Is now the best time to call the bottom of the market and hold a piece of top end London real estate for yourself and future generations?