Yacht Fractions

[Whitelighter]

I have been considering selling a share in my current boat, as work commitments with a promotion mean that I have less free time for next year than I initailly thought. I know that sharing is a bit more common with Yachts than it is with MoBos so I thought I would ask here as well as the MoBo forum.

I have come across the company Yacht Fractions Limited, who seem very proffessional and specialise in part share brokering. I would like to know if any forumites have dealt with this company, have a share arranged by them or have any advise on this route.

As I understand it, they do not run a management company, mearly introduce likeminded people who both want to share the same type of boat for a fee (5% of share price). They have been running for 10 years (or so they say) with yachts and have branched out into MoBos. Any help and comments about Yacht Fractions would be greatly appreciated.

Jez

 

[Lizzie_B]

Yes, I have had dealings with them. Excellent, professional and gave me lots of useful advice. I was coming at them from the looking to purchase a share direction.

 

[Talbot]

Whatever you do, dont do it on a freind/shake of the hand basis, but as a proper recorded business deal.

Done well, and you end up with new friends.

Done badly and you end up de-valuing the boat, and hating your time afloat.

 

[Joe_Cole]

I spoke to Yacht Fractions a few years ago and was impressed with them, though we didn't proceed in the end.

We spent an evening with a couple at Poole in the summer. They had a quarter share in a Sadler 32 and were very happy with the arrangement. When I asked why it worked they said "Because we don't know the other people"! It was all done on a business basis, they discussed things at an AGM, and everybody knew what was expected of them. Beyond that everyone did their own thing.

The only problem was that nobody was allowed to leave personal possessions on the boat. It made sense, but would mean more kit to lug around everytime they went to the boat.

 

[gjbentley]

Why bother with a middle man to set up a share syndicate for a yacht ?

A simple advert in YM will generate potential share-holders. Next job is the produce a written agreement detailing the terms of the partnership, and how decsions will be made over the use, maintenance and cost of upkeeping of the yacht.

It should be legally binding, but the likelihood of you taking another partner to court is remote. Chances are you will sell your share first if you can not resolve any difference you have with another partner.

So the most important priority is to have good communication between the partners to avoid misunderstandings that can easily develop into a disasterous investment.