Our Relinquishment Policy

Relinquishment Policy
Adopted 14th December 2021

1. Introduction:
   • The Relinquishment Policy is issued on behalf of Underscar Owner’s Club Ltd (the Company) so when we mention “Underscar”, “UOCL” “we”, “us”, or “our” in this document we are referring to the Company.
   • Timeshare owners and their families have been enjoying wonderful experiences and making special memories at Underscar, since we started in 1998, but we all recognise that experiences eventually have to be enjoyed by the next generation.
   • Underscar is a collectively owned timeshare site, run on a not-for-profit basis by a Board of elected owners, with the assistance of our employees.
   • The UOCL Board has now adopted this Relinquishment Policy to balance the requirements of the Underscar Family with the needs of those owners who sadly find it necessary to leave.
2. What is Relinquishment?:
   • While most owners continue to holiday at Underscar, it is no longer possible for some to enjoy the same benefit. In some rare circumstances owners need the option to relinquish (surrender) their timeshare ownership.
   • Each Holiday Week that a Club member holds provides a licence to occupy a particular apartment at Underscar for a specified week in the timeshare calendar. The contract commits each owner to pay their annual management fee throughout the lifetime of the site lease (i.e., until 2078).
   • The financial viability of the Club depends on every owner paying their annual management fee to cover the operational costs and the continual investment in property upkeep and improvement.
   • Relinquishment means an owner following a clear legal process that enables them to be free of their future contractual liabilities to Underscar Owners’ Club Limited (UOCL).
3. Selling and letting your week:
   • Before UOCL will consider stepping in to offer relinquishment, we expect the existing owner to have tried to sell their Week for a period of at least 12 months at a realistic market rate (i.e.: a rate that is consistent with recent sales achieved by our Sales and Rentals team for a comparable apartment/week).
   • Our Sales and Rentals team will assist an owner to sell as well as let their week – but need good notice of the owner’s intentions to allow time for the Week to be marketed. Naturally the likelihood of an apartment being sold/let depends on the time of year and general market conditions.
   • We cannot market a Week for sale or let without the express consent of the owner, which should be provided at least 8 weeks prior to the holiday start date. The earlier the better for the likelihood of a rental being obtained.
   • If an owner should find a private buyer, they must notify our Sales and Rentals Team who will deal with processing the sale. This is required to ensure that all legal requirements for a timeshare transaction are met before the transfer of ownership can be confirmed.
   • An owner’s liability to pay their management fee continues whether or not their Week is being offered for sale or rent.
4. Applying for relinquishment:
   • The owner of a Holiday Week (or someone authorised to act to their behalf) can apply to the UOCL Board with a request to relinquish ownership at Underscar. They must be able to show that:
     • They have been trying to sell their week through our Sales and Rentals team or other legitimate channels for at least 12 months at a realistic market rate.
     • The owner is up to date with management fees and any other charges owed by them for all Underscar Holiday Weeks that they own (recognising that management fees should have been paid not less than 8 weeks before a Holiday Week).
     • They can provide their holiday certificate and a signed Surrender & Request form.
   • In order to protect the finances of the club as a whole the owner is then required to pay for 2 years Management fees to buy themselves out of their contracted obligation until 2078; this ensures other owners are not subsidising the outgoing owner, while the club finds a new owner to enjoy that holiday week.
   • There will also be an administration fee payable to UOCL, and a legal fee to our solicitors to service the administrative process for change of ownership. (This currently totals £258 including VAT)
   • The application process starts by contacting [email protected] to request an application form. Once completed, this form should be returned to: Underscar Owners’ Club Limited, Underscar, Applethwaite, Keswick, CA12 4PH.
5. Exceptional hardship:
   • The club recognises that there are a small number of owners who face exceptional difficulties and the UOCL Board has given authority to the Chairman to decide such cases in consultation with the Financial Director. Examples of situations where there has been agreement to waive some of the requirements listed above include where evidence* has been given of:
     • Death of an owner¹
     • Chronic illness or disability² such that the owner can no longer travel to Underscar
     • Bankruptcy or serious financial hardship
     • The divorce or separation³ of a couple who jointly own the Holiday Week
   • Each such application will be considered on its own merits. It is for the owner, or those acting for them, to provide the Chairman with sufficient information to justify a hardship exception to the normal relinquishment policy. The Chairman and Financial Director will then decide whether there are sufficient grounds for any of the normal relinquishment requirements to be waived. Their decision shall be final.
6. Background:
   • In deciding to publish this policy the UOCL Board has:
     • relied on its experience in dealing with a small number of owners in exceptional difficulty between 2016 and 2021
     • reviewed what other Timeshare organisations are doing
     • consulted our Trustees and Solicitor
     • and considered the current best practice guidance from the industry body (Resort Development Organisation Ltd).

Notes

1. Death
   • In the event of death of an owner the applicant should provide a death certificate and proof that they act as executor or personal representative of the deceased.
2. Chronic Illness or Disability
   • Permanent severe disability or severe illness should be so serious that the owner is unable to access or make reasonable use of their Holiday Week on an ongoing basis. In seeking the relinquishment, the applicant should provide a letter, at their own cost, from a GMC registered medical practitioner to certify that such a condition exists and that it is likely to last more than 12 months.
3. Divorce or Separation
   • We recognise that Timeshare is of limited capital value but represents an ongoing financial commitment for owners (see 2b) who are jointly and severally liable. A separating couple should decide who will take on future responsibility for the Holiday Week and inform UOCL of the change in ownership – as confirmed in their divorce settlement, or formal separation agreement. If they are seeking to relinquish their joint ownership UOCL will expect to see evidence of the formal Court Order concluding their financial affairs and recording the agreement to relinquish and will take this into account in evaluating whether there are any exceptional hardship grounds that might apply.