Joining/Leaving the Syndicate
Ease of entry and exit are a key differentiator between shared and outright ownership of a yacht.
We are very keen to maintain the comparative ease to buy or sell a share in one of the syndicates. We have found that our shares generally change hands more rapidly, and with less complication than a whole yacht does.
This is because:
A share in a yacht is a much smaller transaction – A £100k outlay on a 5 year old 60ft yacht is much less daunting than a £1m outlay on the same vessel. Buyers can draw comfort from their fellow shareholders in that yacht, who remain happy owners.
A share in a yacht is much less available on the market – There may be 10 or 20 sister ships of any particular model for sale in the western med at any one time, making it hard to sell one’s outright yacht in such a competitive marketplace. Whereas there is probably only ever one share for sale in one of those yachts, meaning the exclusivity generally translates to a quicker sale. (Some of our yachts even have waiting lists of potential new owners)
A share in a yacht is a less risky transaction. – When buying a yacht outright one always wonders what’s wrong with it and why the seller truly wants out? With a share one can fairly safely assume that it’s not the yacht that is the issue, as the majority of other syndicate owners happily staying in the yacht and are not selling her.
A share in a yacht is a less complicated transaction. – When buying a yacht outright one needs to undertake a full survey, make sure there are no liens and that the taxes paid and service history are all as they should be. With a share, the other owners have already vetted all the purchase pitfalls, and the syndicate agreement is the only document of significance. As that is also identical to the agreement of existing owners, it too will have already been scrutinised by the many past and present shareholding owners.