Numerous timeshare owners are facing difficult decisions over maintenance fees. What happens if you fail to pay timeshare maintenance fees?
If your situation has altered and you can no longer manage the continuously rising charges, what alternatives are available?
Simply walking away may result in financial liabilities and legal implications, when all these owners want is to terminate their timeshare agreements and not be taken in by more sales pitches.
If you find yourself in a situation where your partner has passed away, 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:
What will happen if I stop paying Timeshare maintenance fees?
We always encourage everyone to seek legal advice before ceasing to pay the fees, as there may be serious financial and legal consequences that could affect your credit rating. There is no one-size-fits-all solution, as every company has different rules regarding exiting a contract, and every situation is unique 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 may have a legal right to pursue you for maintenance fees as well as legal costs if you fail to 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 could inherit the burden of taking over the costs. Even if they don’t use the property, Even if they do not utilise the property, they might still be pursued for legal costs if they do not pay the fees.
A non-deeded Timeshare is usually a points-based membership and is somewhat more flexible in terms of terminating the agreement, as you do not physically own an asset and you are only renouncing 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; 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.” 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 allowing someone else to use the unit. You can simply give them the usage, or rent out the unit.
Check Using Our Claim Calculator to check if you qualify for a Timeshare Release
Our timeshare compensation calculator offers a fast and simple method to determine the amount you may be entitled to receive for your mis-sold timeshare.
Looking to relinquish your Westgate Resorts timeshare contract? Mercantile Claims can help you get the money you deserve for mis-sold timeshares
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