Frequently Asked Questions
- What am I buying?
Each apartment is owned by a new company limited by guarantee, which has 50 Membership shares. One share, for each week of the year. (Leaving two weeks for maintenance) By purchasing one share you own one week and 1/50th share of the leasehold interest in the apartment. (Each flat has a lease of 125 years) and automatic membership of The Cove Club. You buy a specific week, which will be priced differently depending on whether it is peak, shoulder or off peak. See the availability chart for more information.
- Can I buy more than one week?
Yes you can buy as many weeks as you like entitling you to a larger share of the leasehold interest.
- Am I stuck with the same week each year?
You buy with your share of the apartment a specific week of the year, but you may swap your week for a different week or even rent your week out through our management office. There will be a small commission charged for this and our web site will incorporate an interactive calendar for each flat so that you can always view what weeks are available for exchange.
- Will my week vary each year with the changing yearly calendar?
All weeks start on a Saturday and all the weeks are numbered from one to 52 for each week of the year. So for example if you want to buy week 36, starting this year on a sat 30th August for the subsequent years it will always vary slightly by a day or two.
Click here for the calendar of all weeks and which weeks are peak etc.
- Is there a service charge?
Yes from £275 to £400 depending on the size of your apartment per annum; which pays for the utilities, insurance, council, tax, maintenance, management, concierge, sinking fund, linen and cleaning. This is fixed for 3 years and index linked after that. The exact amount depends on the size of the apartment and the actual figure is included in the price list schedule.
- Who will manage the apartments?
The apartments will continue to be managed by the same staff and owners. The operating company is Seaside Hotels Ltd and will be run no differently to how it has during your previous stay. Each year the apartments will be checked and refreshed for the next year during the 2-week maintenance period.
- Will there still be a restaurant on site?
Yes. In fact, next year we are opening a new conservatory restaurant on the outside terrace, next to the pool and as members of The Cove Club, you get a membership discount of 10% on all food and beverage.
- What security do I have if the operating company goes bust or doesn’t manage properly?
Firstly, you own the apartment with your fellow members, so nothing can take this away. If nothing else, it’s a great investment in a superb location that will never depreciate and is more likely to gain value as The Cove becomes even more of a hot destination than its already become. Its in our interest to continue the same high level of service through our management company, but in the unlikely event that this wasn’t the case, there is a way to have a say in the running of the management through the management agreement.
- What’s the legal framework for ownership?
Each apartment is transferred to a new company limited by guarantee, so there can be no liability on any of its members. It’s a new company set up strictly for the purpose of owning and running the property and there are 51 memberships. One founder member who simply procures membership to the company, but has no rights of occupation and 50 ordinary memberships who each are entitled to one weeks of occupation and 1/50th share of the property.
- What documents do I have to sign?
Each member signs a reservation form to first reserve their share and specific week and pay a refundable deposit of £500. When the founder member has procured the reservation of a sufficient ** number of the members for any particular apartment, the property is transferred to the company and a notice of completion is then sent requiring you to pay the balance of the membership fee on production of ; one signed membership certificate; proof of ownership by the company of the apartment, with a clean search showing that it is free of mortgage or encumbrance. In addition there are a set of rules of membership, Memorandum and articles of association regulating the running of the company, together with the allocation of the specific weeks. All these documents are available for inspection on request.
- Isn’t this just time-share?
No this is fractional ownership. With time-share you only own the time. With Fractional ownership, you own a share of the apartment, which over time will increase in value and can be used for the rest of your life and passed onto your children.
- Can I sell my shares?
Yes after the first year, you may sell your shares through our management company or privately.
- Can the property be sold and how can it be valued?
If a majority of shareholders wish to sell there is a clause in the memorandum of the company that they may sell the property. The value of the property and therefore each individual share will depend very much on the rental achieved. As this appreciates with the success of The Cove, so will the value of the asset, so therefore the value of the asset is linked not just to the property market but also to the UK tourism, which is set to soar even in the face of an economic downturn.
- How do I reserve my share?
We have a very simple reservation form which we can send you or you can download here. All you need to do is to fill in the form and send us a cheque for £500 made payable to Seaside Hotels Ltd/Client Account or pay by credit card. Upon reserving the week, we undertake not to market that week, to reserve this specific week for 2009. If the week has already been reserved by a non member then we will attempt to ask them to change to another similar apartment, but if not possible, you will have the choice to take the benefit of the rental income less our commission.
** Sufficient number of reservations will generally amount to 17 members per apartment