The Truth About Fractional Ownership vs. Timeshare

How Companies Like Seasons Holidays PLC, Club La Costa, and Diamond Resorts Misled Consumers Into Buying Worthless Products.

In recent years, thousands of consumers across the UK and Europe have been misled, manipulated, and outright deceived by holiday companies such as Seasons Holidays PLC, Club La Costa, and Diamond Resorts.

These firms have intentionally disguised timeshares as “fractional ownership” in order to dupe buyers into thinking they were making a smart property investment – when in fact, they were signing up for high-cost, low-value products with little or no resale value and no real ownership rights.

The Truth About Fractional Ownership vs. Timeshare

The Sales Lie: “You’re Investing in Property”

Under the guise of selling fractional ownership, these companies marketed what were legally timeshares as “bricks-and-mortar investments”, convincing members they were buying a share of a property that would increase in value.

Sales staff used slick presentations and emotionally manipulative tactics to build trust, often during relaxing holiday stays. Prospective buyers were told they were entering the world of luxury second-home ownership – but this was a calculated misrepresentation.

The Truth About Fractional Ownership vs. Timeshare

The truth? They were sold glorified holiday bookings, tied to high annual maintenance fees, inflexible usage terms, and virtually no exit options.

Despite being called “fractionals”, these schemes bore all the legal hallmarks of a timeshare, falling under timeshare law and offering none of the rights or protections of true co-ownership.

The Truth About Fractional Ownership vs. Timeshare

What True Fractional Ownership Looks Like

Genuine fractional ownership – also known as co-ownership – involves a small number of people (usually 2–12) sharing real legal ownership of a holiday home or luxury property.

Each owner has a registered stake in the property, is named on legal documents (like a deed or share certificate), and has a say in how the property is managed. It’s a form of collective property ownership, often well-regulated, and can offer long-term value.

But what buyers received from companies like Seasons Holidays PLC, Diamond Resorts and Club La Costa was not this. These schemes involved dozens of “owners” per unit, no title deeds, no ownership in land or buildings, and no say in how the property was run. In short: it wasn’t an investment, and it wasn’t ownership.

The Truth About Fractional Ownership vs. Timeshare

Key Legal Differences (And How Companies Tried to Bury Them)

Legally, if a product gives a person the right to use a property for a specific period each year – especially when sold as part of a holiday scheme – it is a timeshare under UK and EU law. That law exists for good reason: to protect consumers from the kind of long-term, financially draining contracts that many now find themselves trapped in.

Despite this, companies deliberately blurred the lines. By calling these timeshares "fractionals", they evaded transparency and convinced consumers that they were buying into a secure, appreciating asset – something that could be sold, passed on, or even rented for profit. But in reality, most people now find their interests are unsellable, their fees ever-increasing, and their contracts nearly impossible to exit.

The Truth About Fractional Ownership vs. Timeshare

A Pattern of Mis-Selling and Deception

This is not a case of a few rogue salespeople. The mis-selling was widespread, strategic, and systemic. Internal documents, sales scripts, and the consistency of consumer testimonies show that these companies knew exactly what they were doing. Promises were made about:

  • Investment returns that would never materialise
  • Legal ownership that didn’t exist
  • Rental income that was impractical or prohibited
  • Exit opportunities that were non-existent or misleading
  • Exclusive usage that in fact was shared with dozens of other buyers
The Truth About Fractional Ownership vs. Timeshare

These companies exploited trust, emotions, and a lack of consumer knowledge – often targeting older individuals, retirees, and holidaymakers with hard-sell tactics, false comparisons to real property, and deliberate legal vagueness.

Conclusion: A Scandal in Disguise

The scandal lies not just in the sale of a poor product, but in the deliberate misrepresentation of what that product was. Timeshare companies rebranded their offerings to escape regulation, avoid scrutiny, and fool buyers into believing they were property investors – when in truth, they were simply paying in advance for overpriced, underwhelming holidays.

The Truth About Fractional Ownership vs. Timeshare

Consumers deserve transparency, fairness, and the truth. Sadly, many found only misleading sales pitches, legal traps, and financial loss.

If you believe you were mis-sold a “fractional ownership” product that turned out to be a timeshare, you may have legal grounds to claim compensation or cancellation. It is not too late to seek justice and hold these companies to account.

Contact us today to exit your contract and claim compensation.

The Truth About Fractional Ownership vs. Timeshare

Timeshare Exit & Claims Guide

National Timeshare Helpline are a UK based Timeshare consumer organisation that provide No Upfront Fee Timeshare Claims, No Upfront Fee Timeshare Contract Cancellation and Free Timeshare Exit and Claim Scam Advice. Our No Upfront Fee policy guarantees that no money changes hands until a successful service is provided. Thus, giving you 100% peace of mind.
Contact us on our freephone number if you have any questions 0800 0590 106 . Read our Reviews

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Reviews From Our Clients

Good legal support during proceedings and good following up after.

Mitchell

Just like to thank Mr Hughes and Shiela who kept in contact with me constantly while processing my claim. Fast and efficient service. Thank-you so much, my life's a lot better know.

Mrs Baxter

Just wished we had known about National Timeshare Helpline sooner, would have saved us a lot of sleepless nights!!

Mr Roberts

Hello Donna, May I take this opportunity to thank you and the team for all of your efforts in successfully settling three claims against Barclays Partner Finance on our behalf. In a world where we have been bombarded for years by bogus…

Mrs P

Dear All I wish to congratulate and thank all at NTH for the work you put in to getting monies back from various scamming organisations I unfortunately allowed us to be scammed by. They have a vast knowledge of the legalities…

R&J

I fully recommend National Timeshare Helpline if you need to terminate your timeshare contract or pursue a claim for monies paid to companies who have not provided claim services that you have paid them for. NTH can also help you…

Mr Jones

Excellent Service, very efficient. Extremely pleasant on the phone.

Mrs Taylor

Hi, Just a few lines to say that the service provided by National Timeshare Helpline was very good and we would recommend them to anyone and our many thanks for all your hardwork. We wish we knew about them years…

David and Geraldine

Hi Donna, I found the whole experience with National Timeshare Helpline very satisfying, they always reply to my e-mails and phone calls. The company terminated my timeshare in a very short time. I did get scammed by a British firm…

Michael and Jane

N.T.H got me out of my timeshare mess, painless procedure, thanks.

David

Been contacted by several Timeshare companies you said they would help me terminate my contract with my Timeshare - but wanted 50% upfront. National Timeshare Helpline wanted nothing upfront - quoted all in price on completion which would take 6-8…

Mr Perry

Thanks for your valuable information! The guy Edwardo called me on Monday morning, and the first thing he said was, “Congratulations Mr Pennington on you receiving in your name 21 thousand euros. I let him waffle on about his qualifications and…

Brian

This company have ended all our concerns re our exit from Our Timeshare. Now we can block, say No and put phone down the phone on Scammers who say we’re still “On the list”. We couldn’t add a review through…

Mrs Woodgate

Thank you for your services in helping us get out of our contract with our timeshare provider. We really appreciate your help.

Mr Jones

Where do i start. I got involved with x3 fraudulent so called Timeshare Terminators A.B.C.Lawyers who stole £9000 off me, and J.Foster Associates who stole £10,600 off me. You have got to trust somebody so i phoned National Timeshare Helpline…

Mick

National Timeshare Helpline makes things very simple and easy to deal with. No complicated paperwork and no legal jargon. They are clear, efficient, and always there for you if you need them.

Mrs Chan

I contacted the National Timeshare Helpline because I was worried about the perpetuity clause in my Timeshare contract and all previous attempts the extricate myself from my contract had failed. I spoke to Keith on the ‘phone and…

Mrs Morris

I found this process so easy, everyone explained fully the process and made it so easy for us to get this sorted, a big thank you to the team, they kept me informed with the process and it was resolved.…

Mrs Ellington

A big thank you to you and your colleagues for all your professional practise and help in resolving our timeshare problems. You will never know what a weight you all have lifted off our shoulders and hopefully we can now…

Mr Godman

This team are very professional and client centred.

Mrs George Philip

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