Timeshare is a long-term holiday product purchased for a number of years.
The duration of the product will be detailed in the timeshare contract and in the governing document for the product (the constitution, articles, scheme rules etc.)
Some products are for a fixed period of time (for example five or 10 years), others have a fixed end date (for example the operation of the scheme will end in 2020). Some timeshare products are sold “in perpetuity”.
Perpetuity contracts literally mean, as the name suggests, ‘forever’, or ‘a bond or other security with no fixed maturity date’.
For timeshare this means there is no fixed end date to the scheme. It has the benefit for consumers that the product they purchased will continue ‘forever’, but it also places on them a liability to meet the requirements of the scheme – notably the payment of annual charges, without a fixed end date.
This can present difficulties to owners who no longer wish to own their timeshare and there are some claims by developers that liability must pass on to beneficiaries on the death of the owner.