Simply walking away may result in financial liabilities and legal implications, when all these owners want is to get out of their timeshare agreements and not be taken in by more sales talk.
If you find yourself in a situation where your partner has deceased, you have retired or been made redundant, you might have legal options which could lead to the cancellation of your contract.
What is covered by maintenance fees?
Due to the tightening of health and safety regulations and tourist licensing rules across Spain and the Canary Isles, many Timeshare Resorts and Apartments have been upgraded, resulting in higher annual maintenance fees.
Here are a few elements covered by maintenance fees:
- Staff wages can make up to 40% of the resorts’ outgoings (e.g.receptionists, cleaners, gardeners, security, back office staff and management).
- Utility bills such as heating, water, electricity, TV and broadband and laundry.
- Insurance and taxes.
- General upkeep and refurbishment of the accommodation and its grounds.
What will happen if I stop paying Timeshare maintenance fees?
We will always encourage everyone to seek legal advice before stopping paying the fees, as there may be serious financial and legal consequences which could affect your credit rating. There is no one size fits all solution, as every company has different rules regards to getting out of a contract and every situation is individual. Although the idea of throwing good money after bad might not sound appealing, an experienced timeshare solicitor is almost always worth the cost as they can protect you from any negative legal consequences. Depending on your Timeshare agreement and ownership type, companies can have a legal right to pursue you for maintenance fees as well as legal costs if you do not pay.
Deeded vs not deeded
A deeded Timeshare is usually in perpetuity, meaning you will be liable for maintenance fees until you pass away and your children could be left with the burden of taking over the costs. Even if they don’t use the property, they might still be pursued for legal costs if they don’t pay the fees.
Not deeded Timeshare is usually a points based membership and is a bit more flexible in terms of terminating the agreement, as you don’t physically own an asset and you are only walking away from a membership contract. The resort can still pursue the collection of payments due or compensation for loss of income and the unpaid fees are usually sold to debt collection agencies who can be very persistent and unpleasant.
Remember, there is always a possibility of your credit rating being affected. If you are finding yourself in this situation, contact Mercantile Claims on 0800 470 3900, we work on a ‘No Win No Fee’ basis; or complete the claim form for a free appraisal of your rights.
Can you write off timeshare maintenance fees?
Maintenance fees. The money you pay to maintain the property may be tax deductible, but only if you rent your timeshare. If you own the timeshare outright, however, you can’t deduct the maintenance fees
Can you inherit a timeshare?
Most timeshare agreements contain a “perpetuity clause.” Basically, the clause requires you to pay the associated costs of owning the timeshare for the rest of your life. When you pass away, the timeshare becomes part of the estate. The obligation is inherited by the designated beneficiary or next-of-kin.
Can you let someone else use your timeshare?
Letting others use your timeshare. If you don’t use your timeshare in a given year, you have the option of letting someone else use the unit. You can simply give them the usage, or rent out the unit.