How does Fractional Yacht Ownership work?
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 - and is possible due to the sharing of 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 made through an informal agreement between friends, a formal agreement between various private parties or through a dedicated and professional yacht co-ownership company such as MIY Yacht. Should you choose to enter into a company provided co-ownership model you attain an abundance of added benefits, including:
The co-ownership company will take on the responsibility of upkeep of your yacht
A personalised and premium yacht concierge service - ready at your service to ensure your time onboard goes smoothly and stress-free
The option to swap your time onboard your own yacht with another MIY Yacht owners yacht in a vast selection of destinations worldwide
Easy of entry and exit into the boat syndicate
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 share - offering you 6 weeks usage in the case of MIY Yacht - or multiple shares if you wish to spend more than 6 weeks at sea. In fact, you could even buy shares in separate vessels, but have all the organisation for your time onboard done through one company.
Each vessel will have a number of owners. The MIY model allows for eight owners per vessel - or less if some owners decide to buy multiple shares - as each share is an eighth of the outright purchase price of the yacht.
When you will be able to use the boat is dependent on the agreement you come to with the other parties. The MIY Yacht co-ownership model allows you to book your time onboard up to a year in advance, through a fair usage system ensuring each owner has time during the peak season - all done over an easy-to-use online platform.
Your share is yours to own, your name is on the ships register - like a land register 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. MIY Yacht offers luxury motor yachts from the worlds most exclusive and sought after yacht manufacturers that range from 50ft to an impressive 140ft and yacht share prices start at £175K.
The cost of the yacht share will equate to one eighth of the value of the yacht itself, and for that 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, available for yacht share, itself - which is shared among its various co-owners.
Conclusion
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 and exit, exclusive access to the world's finest luxury yachts, and affordable ownership are just a few of the numerous advantages of being a shared yacht owner.
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 really doesn’t come with a catch - it really is a wonderful way to experience and even own the luxury yachting lifestyle, and share the cost with other like minded individuals.
To find out more about the MIY Yacht Co-Ownership model, the services we provide and the vessels currently available for yacht share in your desired location, check out our website here