How does Brexit affect timeshares?
Image source: Getty Images  Brexit hasnt just made driving in Europe a little less convenient. There are consequences for timeshare owners too. Heres what leaving the European Union (EU) means for UK timeshare owners, and what to be aware of if youre considering a timeshare at home or abroad. If youre of a certain age, youll remember when timeshares were at their peak. They were actively (and often aggressively) sold during the 1980s and 1990s. Its estimated that there are between 500,000 and 600,000 timeshare owners in the UK. A timeshare is essentially a product that allows you to stay somewhere overnight for more than one period. It can apply to one or more places of overnight accommodation too. Contracts also need to last for more than a year. Holiday clubs can also count as timeshares. These typically give you discounts or member benefits with certain resorts or apartments. Currently, the most popular destination for British timeshare owners is Spain, accounting for nearly half of the market. One quarter (25%) are outside Europe and 20% of timeshares are in the UK. Plot your path towards financial freedom with our Heros Journey tool! MyWalletHero is here to help you learn about taking control of your money, whether thats paying off debt, working towards a short-term money goal, or investing for your future. This tool can help you understand the next steps on your journey  simply choose a goal that best describes your current interests to get started. Brexits effect on your timeshare will depend on who your contract is with and where your timeshare accommodation is located. If your timeshares in the UK and your contract is with a UK-based firm, then nothing will change. Youll be bound by the terms of your contract but you can appeal any clauses you consider unfair in a UK court. Its essentially the same if you have a contract with a UK firm but for timeshare accommodation in Europe. So long as the timeshare company is in the UK, your contract will be governed by British law, even post-Brexit. However, if your timeshare contract is with an EU-based company, its a bit more complicated and your contract will be bound by the law where the firm is based. Before Brexit, UK and EU consumer laws were harmonised, so rules governing timeshares were broadly in line. British timeshare owners also had the right to enforce their UK consumer rights within the EU. But this isnt the case anymore. Now, if you challenge a clause in your contract and a UK court rules in your favour, getting that decision acknowledged in the EU, against an EU business, could be a lot harder. This might not seem like a big deal. After all, it makes sense that a contract with, say, a Spanish firm will be subject to Spanish law. The problem is that despite having lots of rules and regulations, the timeshare market still throws up some problems that are tricky (and expensive) to resolve. And with Brexit, trying to resolve those problems is now even harder. 4 iron-clad rules for saving money on everything Our Editor Sam Robson has been on a personal cost-cutting mission for years  and its time to share his wisdom. Check out his choicest saving tips and tricks in this free report, Sams 4 Iron-Clad Rules For Saving Money On Everything. Just enter your email below for instant access to your free copy. Click here! What to be aware of when buying timeshares post Brexit  Most timeshare problems revolve around the same few issues. So, if youre thinking about signing a contract with an EU company, make sure you know exactly what youre getting into. Its worth knowing that under EU law, your contract must be written in your own language (if its an official EU contract). You also have a 14-day cooling-off period. This can be longer if youre not given all the information straight away. There are a few common timeshare issues to watch for. Excessive fees  Hefty maintenance fees are a big problem for many timeshare owners, as is a lack of transparency over how theyre calculated. Resale problems  Check youre happy with the resale process. Some timeshare firms make it purposely difficult for you to sell your share, often with high transfer fees. You may also be told to sell through a particular agent. Lifelong contracts  A number of timeshare contracts come with in-perpetuity clauses. This means youre bound for life and cannot sell your timeshare in your lifetime. Some contracts go a step further and are bound to your estate. These contracts mean even after your death, your estate is responsible for paying maintenance fees. Scams  Even before Brexit, timeshare scams were a problem. Although its easy to get caught out whilst youre on holiday and your guard is down, remember, if a sellers promises seem too good to be true, they probably are. Where to get help with timeshares  If youve been mis-sold a timeshare, or feel you were pressured into buying one, you can contact Citizens Advice on their consumer helpline. You can also contact EUROC.org, which supports owners of European timeshares. And dont forget that if you are planning a holiday, you can save money on fees with these top travel credit cards. If you are mis-sold a timeshare, these cards can also help to protect you under Section 75 regulations. Get a free initial review lasting up to 1 hour, plus 50 off any follow-up advice. MyWalletHero has sourced you a 50 discount off the cost of advice when you find an independent or whole-of-market financial adviser through Unbiased.co.uk*. All advisers are FCA-regulated, qualified and give fully unbiased advice. 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