Charter Ownership
Cruising the inland waterways of France and Europe in a first-class boat is a dream for many people. However, paying for maintenance, insurance, mooring, new equipment, and other bills can be a significant – possibly terminal – dampener on the dream.
Charter ownership is one way to make it more affordable and help keep costs low while owning a new or nearly-new boat.
August 2021: Le Boat have postponed offering new and ex-hire fleet boats until mid-2022
Guaranteed Income Schemes – Example Details
- Guaranteed Income of 5-10% of purchase price, for 5-10 Years
The charter fleet or operator pays the boat’s owner between 5-10% of the total boat value at the time of purchase each year, for the duration of the contract, which is usually 5 years, sometimes more. - Income might match Finance
The guaranteed income can cover finance payments, but viewed prudently, loan or mortgage durations should not significantly exceed the charter contract period. After (say) 10 years or more the value of the boat asset may be outweighed by continuing finance costs. - Operating Costs Paid by Fleet or Operator – No Additional Costs to Owner
The charter fleet or operator pays for all expenses, including insurance, marina fees, and maintenance during the contract. - 5-10 weeks holiday cruising use of the boat
The boat owner, and/or their family and friends get to use their own boat or another fleet boat at any of their bases for between 5 and 10 weeks per year.
Based on historical data, a high quality new boat is worth approximately 60-65% of the original value after five years in charter.
The owner then has several options:
- Pay off any loans and sell or trade in the boat
- Pay off any loans and use the boat full-time
- Renew the charter ownership contract and arrangements
Locaboat
Locaboat proposes an ownership programme based on the innovative Pénichette P950 E, developed jointly by Locaboat and Linssen and made by Linssen at their Maasbracht boatyard.
Nicols
The Nicols Rental Management Programme combines the pleasures and opportunities of boat ownership with an attractive price incentive, income from Nicols’ use of your boat and no-cost all-inclusive professional maintenance.
Linssen
Charter Management gives you the opportunity to own a superb Linssen boat, to enjoy annual holidays on this boat and to be safe in the knowledge that not only are there no running costs for the vessel, but that you will also be receiving an income from your investment.
Fractional Ownership
Private Shared Ownership
Given that many boats spend significant periods of time unused on their mooring, it’s perhaps not surprising that boat sharing has grown in popularity over the years, as many people turn to joint or co-ownership arrangements to get them aboard. This can prove to be an excellent means to enjoy the benefits of sole ownership whilst sharing costs and making the best use of available time.
“ . . Boat sharing is a great model for those who’d like a boat, but know they don’t realistically have enough time to make the most of full, outright ownership. There are many common myths about boat sharing, which usually involve unsuccessful syndicates with poorly maintained boats and friendship or family feuds. While there are undoubtedly some syndicates that go wrong, most are successful, with well-maintained boats whose owners get more time afloat than many who own their boat outright . . “ (RYA Legal Manager, Mandy Peters)
A written agreement is crucial, even for boats shared within families, and will help to ensure that all parties consider the various aspects of how the boat will be operated and maintained.
Fully Managed Syndication
There are a small number of schemes providing a fully managed service for syndicated ownership. The boat’s ownership is shared by the members of the syndicate but responsibility for booking time, maintenance, preparation between bookings, etc. is passed to managing agents. The agent can also manage or arbitrate between owners and resolve any difficulties. Naturally, there is monthly fee for the service and each shareholder-partner receives a monthly report regarding the boat and its financial situation.
The syndicate boat can be chosen and commissioned brand new, with member owners (shareholders) agreeing details, purchase price and specifications, or an existing boat’s ownership can be syndicated, or some syndicate managers have a portfolio of boats where ownership shares can be purchased. The managing agent can also introduce new or replacement shareholders into the syndicate. Co-owners book time online using an app and can have as much or as little to do with each other as they want – they may not know each other at all.
