Small boat syndicate

[morrisman]

Hi All
My Father and I are thinking of forming a syndicate with a neighbour, who is a good friend of ours, to buy a small 15' speedboat for watersports. Total cost is about £3500. We have all owned boats in the past. We are all going to put unequal shares into the boat. Have any of you had any good/bad experiences, and do any of you have some standard terms we can incorporate into an agreement etc that you have found worked well? Terms required particularly for selling and use/access to the boat. We have already agreed that the boat is to be kept with my father.

Advice would be appreciated!
Thanks
Tom

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[Joe_Cole]

Try a search on previous threads: this has come up several times before and you should be able to find lots to help you.

Good luck

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[enterprise]

Hi there,

Tried a simillar syndicate that lasted well for 7 years.
But ended prematurely!

Open an account for maintenance costs so each will pay the same amount in maintenance.

Agree on usage,if you all want to use it together it will be cramped if you include friends & partners.

Not everyone will be able to use it for the same amount of time, be mindfull of taking more or less of your share and what this will mean to the yearly maintenance(ie if one of the syndicate uses it for a greater amount of time do they then need to pay more into the maintenance pot etc).

You need to agree on equall share,all put the exact same amount of money in, start with more than is needed to buy the boat as things get tricky if there is equipment needed from the outset.

Agree how the boat will be disposed of when the time comes,this is where our syndicate stumbled,both of us wanted to upsize,we sold the boat in record time,
the other member went & spent his share on a new car!!!!
If I had known I would have bought his share,instead it left me without boat & 3 years without one to recover from the withdrawall of 50% of the funds for the new one.

Lastly agree on the purchase of everything that is connected with it,if you want the latest gadgets but the others say 'not bothered' don't use the pot,buy it for yourself and not the boat.

ps this all sounds grim & you will think that it's not needed but how would you feel if everytime you go to enjoy your boat your neighbour turns up with 6 of his mates who all want to drive the boat while you put the petrol in & are left sitting on the beach? IT HAPPENS.

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