Shared ownership
Shared ownership of boats is becoming increasingly popular due
to its flexibility. You can now share ownership on a number of
different boats including a narrow boat, yacht or motorboat.
There are a variety of schemes available:
Some offer the chance to buy a share of a boat in a syndicate.
You all own the boat equally and have a specific time on the water
each year, decided annually, it’s a bit like a holiday home
time-share.
The boat purchase and the ownership of the boat itself is
usually managed by a Shared Ownership company.
Costs for this type of scheme vary on the type of boat, where it
is kept and how much time you get on it. You pay an initial shared
purchase fee and then an annual management fee. It really pays to
do your homework on costs and read any small print. Always consider
what happens if you want to upgrade or leave the scheme.
Relatively new to boating is fractional ownership. It’s been
around for planes for a while.
Here one person buys the boat and other members of the shared
ownership scheme are guaranteed a certain amount of usage each
month for a fixed monthly charge.
The company offering fractional ownership looks after the
maintenance of the boat for everyone.
Another form of shared ownership if one you arrange yourself. If
you have friends or family who are looking to do similar boating to
you then consider a joint purchase. It can be a sociable and cost
effective way of getting on the water. Just remember to get your
purchase paperwork done legally and work out all of your boat
“rules” in advance.
Benefits of Shared Ownership:
- Depending on the scheme you may enjoy a better standard of boat
for your total financial outlay
- You just step aboard – someone else looks after the
maintenance
- You may be offered the opportunity to use other boats in other
locations
- The company looks after the purchase of the boat and may enjoy
the costs advantages of buying a number of boats from one
source
It should be easy to upgrade to a bigger boat
Possible pitfalls:
- May not be cost effective. You need to check the annual costs
and any possible increases. If they rise steeply due to heavy usage
of the boat you may end up paying more than you expect, and it
might be more cost effective for you to own your own boat.
- The boat is only yours for specific times of the year. Some
companies are offering more flexible deals now though.
- Some schemes mean long commitment. You may want to change your
boating type and it may be difficult