Timeshare fees: trapped in a holiday that lasts for life

Of the 600,000 Britons who still own timeshares, 250,000 want to dispose of their investment.

A Telegraph investigation has found that many of those who bought timeshares in the 80s and 90s are struggling to sell or even give back these “investments”. Although they do not use the property, they are liable for "maintenance fees" and will be pursued for legal costs if they do not pay.

Timeshares – a form of ownership where multiple people have a right to use a property for a period of time every year – were often sold aggressively and without any legal advice. Figures from the European timeshare industry show that 590,000 Britons still own timeshares, while thousands are up for sale on websites and forums.

If owners can't pass the properties on, the contracts lock them in for life. And the management companies that run timeshares often refuse to buy them back. Most recommend the use of costly middlemen, who take a fee for handling your timeshare with no guarantee of a sale.

Some estimates say as many as half the 1.5 million timeshares in Europe are being kept "under duress".

Timeshare owners may be continuing to pay maintenance fees because they have little choice legally. 

Some pensioners are being forced to pay fees until they die, even if they are too old or ill to use their holiday properties. Some even opt to bequeath them back to the companies in their wills, so their children won't be lumbered with ongoing fees.

Many timeshares were bought on holiday, in currencies other than sterling, meaning fees have risen as the pound has weakened.

Yvette Grant bought her husband, Michael, a timeshare as a surprise present for his 50th birthday 14 years ago. It gave the couple access to a two-bedroom apartment in Tenerife for one fixed-date week in April every year. They enjoyed several holidays in the resort, even buying an extra week and upgrading to a larger apartment.

They say the trouble started when the timeshare company, Paradise Club, was taken over by a larger firm, Club la Costa, and fees started rising.

"The annual maintenance costs soared," said Mr Grant. "When we initially took out the timeshare, we paid around £200 a year. This rose to £400 after we'd upgraded and took a second week. But after the new company took over, it doubled the maintenance fees, and with the weakened pound we now pay nearly £1,000."

After going into semi-retirement five years ago, Mr Grant decided he no longer needed a three-bedroom apartment, nor could justify spending so much a year, and he approached Club la Costa to discuss selling.

Club la Costa gave him a list of companies that could sell on his behalf but most asked for upfront fees with no guarantee of results. "After I refused to pay without results, many of the companies lost interest," he said. 

The couple advertised on timeshare websites but to no avail. Frustrated by the difficulties, Mr Grant offered to give the timeshare back to Club la Costa for free, so he could stop paying the annual charges. "I was told in rather firm tones by Club la Costa that if I stopped paying my maintenance charges they would take legal action for breach of contract."

Mr Grant returned to Tenerife for what he was determined would be the last time.

"I saw a family being shown around the apartment block by a salesman, enjoying their free week's holiday while they listened to the hard sell. I waited until later that day and approached them. The company was going to charge the family £10,000, so I offered my week for £1,000. They bought it then and there."

The Grants' story is familiar. Of the 1.5 million timeshare owners in Europe, more than a third are from the UK and Ireland. Most resorts are in Spain; three of Club la Costa's 28 resorts are in Tenerife, while it also has a resort in the Costa del Sol, where holidaymakers must cross a dual carriageway to reach the beach.

Diamond Resorts, the largest UK timeshare supplier, has 18 resorts in Spain and the multinational timeshare companies Disney and Marriott own more than 100 between them.

Elisabetta Sciallis of the Trading Standards Institute said that although the lifetime contracts might seem unfair, the timeshare companies were within their legal rights to demand annual payments.

"Many people were very happy with their timeshares, and continue to be so," she said. "If, however, you can no longer afford maintenance fees – because you have been made redundant, you have retired or your partner has died – you have legal options that can lead to a discharge of the contract. Unfortunately, those who simply do not want to own the timeshares any more have to find a buyer."

Timeshare selling tactics were notorious in the 80s, with companies offering inducements to anyone turning up to their presentations. Resorts also use touts to lure people when they are already abroad with offers of an extra week's free holiday.

Carole Humphries is all too familiar with these tactics. Mrs Humphries bought a timeshare with her husband, Glyn, while on holiday in the United States in the 90s. She said: "We only meant to pop in for an hour to see what it was about. Before we knew it we'd spent a lot of money. We felt under pressure to sign. That night we lay awake in bed thinking, 'What have we just done?' "

Although her family currently use their timeshare, she worries about the future. She said: "I don't want to have to leave this financial burden to my children. What if they don't want it?"

Complaints about the hard-sell tactics have led to a change in the law. In February, the EU ruled that any new timeshares or long-term holiday products with contracts of more than a year must be sold with a 14-day cooling-off period giving buyers the right to cancel. The seller cannot ask for any money within the 14 days.

read the full article here

Over the past 3 years ITRA has invested in seeking financial restitution on behalf of timeshare owners, past and present who maintain and believe that they have been fraudulently misrepresented by various organisations in respect of the purchase and
ongoing use of their timeshare so as to render it virtually valueless and untenable.

For a FREE no obligation consultation, contact us TODAY