In recent years, there has been a surge in people choosing to join yacht share networks, or fractional yacht ownership models, as opposed to purchasing a yacht outright. Fractional yacht ownership is a means of owning a vessel at a much lower cost - due to sharing this cost with one or more other yacht owners. The reason why? You benefit from all the advantages of the luxury yachting lifestyle - but do so at only a fraction of the cost.
How does fractional yacht ownership work?
Anyone looking to enjoy the unique experience of owning a yacht for less should consider fractional yacht ownership. It can be through an informal agreement between friends, a formal agreement between various private parties or through a dedicated yacht co-ownership company. Should you choose to enter into a company provided co-ownership model, you could attain an abundance of added benefits, including:
1. The co-ownership company will take on the responsibility of upkeep of your yacht
2. A personalised yacht concierge service - ready at your service to ensure your time onboard goes smoothly and stress-free
3. The option to swap your time onboard your own yacht with the company’s other yacht owners to open up a vast selection of vessels and destinations worldwide
All you have to do is browse the various vessels available for yacht share, and choose the one that best suits your needs and budget. You can choose to buy one or more shares if you wish to spend more time at sea.
Each vessel will have an agreed number of owners and each share will cost the corresponding fraction - for example, if there are eight owners of a £1.4M yacht, each owner’s buy-in will cost them only £175K.
When you will be able to use the boat is dependent on the agreement you come to with the other parties. Dedicated yacht co-ownership companies will generally offer a structure to allow you to choose your desired weeks and should allow for a fair usage system in which each owner is guaranteed time onboard during the peak season.
Your share is yours to own, your name is on the ships register, just like a land registry for property, and your time onboard is yours to do as you wish. You can use your yacht as a floating apartment and stay in a certain location for weeks at a time, or set off and explore multiple destinations and countries - the choice is yours.
How much does fractional yacht ownership cost?
This varies from the type, size and quality of the vessel, as well as the number of other owners. The cost of each share will be the outright cost of the vessel divided into the number of owners.
Small luxury yachts will cost upwards of £1.4M outright - if such a yacht was to be split between eight other owners, for example, each share would cost £175K.
For this reason, fractional yacht ownership is much more financially attainable than sole yacht ownership.
In addition to this, the cost of the upkeep and maintenance will also be split among the syndicate owners. So while this would normally cost a yacht owner 10% of the price of the yacht in its entirety, it will cost a yacht share owner only 10% of their share price.
Can you timeshare a yacht?
Yes - you can timeshare a yacht. But this is a separate model to fractional yacht ownership. While it can sometimes be referred to as yacht timeshare ownership - as well as yacht co-ownership, boat or yacht syndication, and yacht share - fractional yacht ownership has one main difference. It comes with the property rights to your portion of the yacht, and offers the ability to sell on your share and receive a financial return should you ever decide to opt out of the agreement. Yacht timeshare comes with no such benefit - it is purely an agreement to share the usage of the yacht for a certain period per year with no financial return and could potentially cost more in the long run. The property rights remain with a third party.
What is a fractional boat?
The fractional boat is the vessel itself - which is shared among its co-owners.
It is clear, therefore, that fractional yacht ownership has found its place in the world of yachting and is here to stay. Ease of entry, exclusive access to the world's finest luxury yachts, and affordable ownership are just a few of the advantages of being a shared yacht owner. Check out all the fractional yachts available.
The world is constantly evolving to discover innovative new ways to experience life by means that may once have been unattainable and fractional yacht ownership is one that doesn’t come with a catch - it really is a wonderful way to own the luxury yachting lifestyle, and share the cost.
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