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How timeshares work

With timeshare, you buy a share in a property abroad for a set period of time each year.

You usually pay a one-off lump sum for the number of weeks that you want to spend in your timeshare. You will find certain weeks, eg in school holidays, are more expensive than others.

For example, you may pay £10,000 to buy the first week in April in a one-bedroom apartment in Tenerife.

You will get the right to use each week you have bought for a set number of years, eg 20 years.

On top of the lump sum, you also have to pay:

• maintenance charges every year for your timeshare
• all other travel costs, eg for flights and car hire

If you can't take your holiday during the dates you've paid for, you may be able to 'bank' the time so you can use it later. There will be a fee to do this.

Buying a timeshare – your rights

If you join a timeshare scheme in the European Economic Area (EEA) or sign the contract in the UK, you have the right to:

• cancel for any reason within 14 days of signing your contract – it's illegal for sellers to take a deposit from you within this time
• get key information before you sign the contract, including a description of the property, the contract start date, price and charges like administration fees
• get a copy of your contract – if you don't get a copy, the seller can't hold you to anything in the contract
• get a cancellation form with your contract
• have the contract written in a European language of your choice

The EEA includes all the countries in the European Union plus Iceland, Liechtenstein and Norway.

If you sign the contract outside of the EEA, your rights will depend on:

• the law of the country where your timeshare is (see link below)
• the terms and conditions in your contract

• Buying overseas – your rights

How to cancel your timeshare contract

For contracts signed in the UK and for schemes in the EEA, write to the seller within the 14 days and say you wish to ‘withdraw’ from your contract.

If you arranged with the seller to borrow money to join the scheme, they must also cancel this credit agreement (loan).

If you signed your contract more than 14 days ago, you can't usually cancel unless the seller failed to give you:

• key information before you signed the contract (also known as 'pre-contract information')
• a cancellation form when you signed your contract

If this happens, the time you can cancel extends up to:

• three months and 14 days if you don't get a written copy of the key information
• one year and 14 days if you don't get a cancellation form with your contract

As soon as you receive the missing information, the cancellation period reduces to 14 days.

Sales presentations

Some timeshare companies try to pressure you to sign a contract. They will often approach you when you are on holiday and offer you a gift if you attend a presentation.

Before you sign up to any offer:

• ask to take the contract away with you – get legal advice on the sale
• check flight and holiday prices to the same destination if you didn't have the timeshare
• make sure everything that was promised to you at the presentation is confirmed in writing

If you think the timeshare company is bogus, you can report it to Action Fraud and the police.

• Report a bogus timeshare company to Action Fraud Opens new window

Selling your timeshare

If you own a timeshare and no longer want to use it, you can usually sell the remaining years.

The company that sold you the timeshare may agree to buy it back or you may get a better price from a 'timeshare resale company'. 

The price you will get for the remaining years is usually much lower than the original price you paid.

There are also bogus resale companies that may contact you and claim they have found a buyer for your timeshare. They will ask you to pay an upfront payment to cover administration costs. Once you make the payment, the company will disappear.

If a resale company contacts you, don't pay any upfront fees and do some research on the company, eg by searching online for the company name.

• Report a bogus timeshare company to Action Fraud Opens new window

Complaints about timeshares

If you have a complaint about your timeshare, contact the seller first.

If you don't agree with their response, you can:

• complain to a trade association if your timeshare company is a member (see links below)
• contact Consumer Direct, the government funded consumer advice service

• Check if a timeshare company is a member of Resort Development Organisation Opens new window

• Complain to the Timeshare Association Opens new window

• Disputes about goods and services – ways to resolve a complaint

• Contact Consumer Direct

More useful links

• Foreign travel (travel and transport section)

• Consumer rights - an introduction

• Buying a service - your consumer rights

• How to find a reliable business