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Luxury residence for a fraction of the cost

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Conceived in the United States, fractional ownership schemes are slowly establishing themselves in Britain.

Fractional ownership is not the same as timeshare. Under fractional ownership, a share of the property is purchased which entitles the buyer to use it for some of the year.

Normally, a fractional property has between four to eight owners, though sometimes it can be dozens. Fractional owners are sometimes called members. The amount of time a fractional owner has at a property depends on the size of their fraction. Members can rent out their property during weeks they don't use it. A management company maintains the property.

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In London, Hong Kong investors are buying fractions at 47 Park Street, Grand Residences by Marriot. The Edwardian-style townhouse in Mayfair has 49 residences which will be owned by a maximum of 637 members - 13 fractional owners per residence. Marriot provides a concierge, room service, in-house florist, valet and twice-daily housekeeping.

Ten per cent of members at 47 Park Street come from Hong Kong and Singapore. Christian Jensen-Broby, vice-president at Marriott Vacation Club International, says most Hong Kong members are businessmen who stay a few days at a time.

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'We found there was a demand from the travelling public for something that could provide more than a flat, but at lesser acquisition costs than buying a flat,' Jensen-Broby says.

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