Brexit: The effects on your timeshare
Brexit is the word of the moment, and despite uncertainties of the final terms of our long, drawn-out exit from the EU we wanted to take a look at the potential implications of Brexit on your timeshare. A large majority of timeshare memberships belong to resorts that reside within the EU region. Spain, Malta, Greece, Portugal and resorts within the Canary Islands are among the most popular countries for timeshare ownership, but the big question is: where will you stand as a foreign national with your consumer rights once we leave the EU?
Other concerning questions include how the EU nations might apply the recent EU directives relating to timeshare products and how that could affect British citizens after Brexit. The general uncertainty surrounding issues about Brexit generally and concerns about what may or may not happen post-Brexit is understandably giving timeshare owners real worries over potential rising costs that they no longer feel in control of. With a snowball effect of many owners using professionals to help them exit their contracts, this means there are fewer owners to share the maintenance fees. Fewer people to share costs, in turn, could result in your resort either not being kept in the high standards or quality that you are accustomed to, or it could impact on your payments and mean that your fees increase significantly.
The drop in the worth of sterling could also have severe implications for your maintenance fees. Since the EU referendum, the pound has plunged losing around one-sixth of its value against other major currencies. With sterling becoming one of the worst performing currencies in the world the knock-on effect is that prices abroad have substantially risen. The fall in the pound is at almost 20% against other foreign currencies such as the US dollar and the Euro. This essentially means that any bills calculated in the Eurozone will also increase by 20% on top of annual increases to maintenance fees. RCI, one of the leading timeshare companies, is based in Ireland. All of their annual fees and costs are worked out initially in euros and then converted by an exchange rate into sterling. It would be reasonable to assume that with the pound showing little sign of a strong comeback the associated costs with timeshare will be set to increase steadily after Brexit.
Unfortunately, the impact of the dip in the pound doesn’t just affect maintenance costs. In fact, all holiday costs from flights to airport food and drink and even airport transfers could very likely increase exponentially which will significantly impact on the average holiday spend meaning, in short, much more expensive holidays. Regarding timeshare, this means more pressure on timeshare owners who may have already been stretched by rising fees in the past. With a low exchange rate added into this toxic mix, maintenance fees are projected to grow considerably higher than they have annually, and this will mean a profoundly negative impact on the bank balance of those who own a timeshare.
Understandably, as a result of this general uncertainty and the potential for a massive rise in holiday costs, we are seeing more and more clients who are looking for help and guidance of how to best release themselves of their timeshare agreements. If you are among those who have concerns about the effect of Brexit on your timeshare, then do not hesitate to get in touch with us for help and advice about your options.
At Athena Law, we work closely with all of our clients to understand their unique situation and frustrations so that we are placed in a strong position to advise you on the next steps you can take or help you better understand the implications of Brexit on your personal situation. We have many years of experience in the timeshare industry, and we would be happy to help.
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