fractional yacht ownership uk

Yacht Share Legal Documentation

The core of fractional ownership is the syndicate agreement that all the owners sign up to and abide by.

The Fractional Association’s shared yachts’ operational management programme has evolved over many years, and their syndicate agreement has been updated and amended over those years to remain relevant and to always run in tandem with evolving operational experiences derived from the ever growing numbers of yachts syndicates and new fractional owners around the world.

The objective of the agreement is to outline the expectations and provide a robust but ‘plain English’ understanding for all parties. It should be read in conjunction with the Fractional Association’s Code of Conduct which underpins the Syndicate Agreement.

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Fractional Yacht Ownership

The freedom to indulge in the luxury boating lifestyle aboard your very own Sunseeker: what our innovative yacht share programme is all about.

Inviting you to sample a slice of the boating high life, Azure Ultra offers you the possibility to part-own a luxury motor yacht at a fraction of the full cost. Complete with a first-class yacht management team to take care of the finer details, our fractional yacht offering takes all the hassle out of ownership, guaranteeing a seamlessly memorable experience each time you step aboard. From impeccable year-round yacht maintenance to making all the necessary arrangements prior to your holiday, our team will continuously ensure that your yacht ownership with Azure Ultra remains a stress-free affair.

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Sole ownership.

Going it solo can prove costly and time-consuming, with ongoing maintenance expenses adding up every year.

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From €1,500,000

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Annual berthing fees

Fractional Ownership

An innovative boat sharing programme designed to render yacht ownership affordable and hassle-free.

Complete personal captain and steward/ess service on board

Yacht maintenance

Boat upkeep and operational expenses taken care of, all year round

Berthing fees

Moorage at the world-class Grand Harbour Marina

Insurance fees

Efficient handling of competitively sourced policies and costs

Land-based exchange options

A choice of thousands of prestigious holiday properties worldwide

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Exclusive service offering you the flexibility to charter your on-board entitlement

Europe's Leading Fractional Yacht Ownership Programme

Based in the UK, Fractional Life is the world’s leading expert in the fractional ownership and asset-sharing industry. The Azure Ultra brand received the prestigious title of Europe’s Leading Fractional Yacht Ownership Programme by FractionalLife.com, the authoritative online portal for the global fractional ownership marketplace.

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YachtQuarters Introduce the Princess Yachts Y72 to Fractional Yacht Ownership

Monday 4th March 2024

With the ever-growing demand for fractional yacht ownership – the ultimate turnkey solution to yachting, Princess have added the refined Y72 to the fleet.  The largest yacht to join the Princess Yachts fractional programme, she exudes elegance through sophisticated lines and a meticulous finish and can accommodate eight guests.  Shares are available now for cruising in 2025.

Why choose YachtQuarters – Princess Yachts fractional yacht ownership?

Sharing a yacht allows you to enjoy owning a yacht whilst giving you the freedom to engage in other pursuits too.  If you love to charter, but would prefer the familiarity of your own yacht whilst still benefiting from the services of an attentive crew of two and concierge service, then this yacht shared ownership programme could be for you.  You can enjoy the comfort of having your own interior style on board and the convenience of a friendly crew, who already know exactly what you, your family and friends like so you can just enjoy your trip.  And all at a fraction of the cost of chartering.  Furthermore, YachtQuarters’ yacht shares are tax free.

The new fractional ownership yacht, the Princess Y72 will be based in beautiful Mallorca with her home berth either in the prestigious Puerto Portals or Club de Mar.  And when it’s time to drop the lines, you can enjoy the freedom of cruising on board your own yacht in the Balearics, along with a tender and choice of water toys to discover secluded bays for complete escapism.  Explore new adventures and create special memories with your loved ones on board your exceptional Princess Y72.

YachtQuarters shared yacht ownership program allows you to still own a yacht in the Mediterranean but without the hassle that long-distance yacht ownership can entail.  Full management is included from the service and maintenance of your yacht to bespoke passage planning and provisioning and even booking your favourite restaurants.  From the moment you step on board, you can sit back and relax as the experienced captain takes the helm to sought-after destinations plus a combined chef/steward/deckhand to ensure your life on board is easy with Princess Yachts fractional ownership.  And as a co-owner, you are owning a share in the asset that is the yacht itself; which means when the time does come to sell, you will receive an equal portion of the proceeds too.

Your home from home – the Princess Y72

Her elegant form and extensive glazing allow light to flood the open spaces throughout.  Flexible living is key with fixtures and fittings to suit.  Her sociable layout within the main saloon combines a bar area to the open plan galley with glass sliding doors and galley window that open to the convivial cockpit dining area, perfect for cosy sundowners.

Contemporary tones co-ordinated with light woods and panoramic windows create an enviable onboard space to while away those long summer days and spend quality time with family and friends.

Below deck, eight guests are comfortably accommodated across four ensuite cabins.  The full beam owner’s cabin takes pride of place with its private entrance via a spiral staircase from the saloon.  With ample storage space, a large ensuite bathroom plus a 49″ LED TV with Naim audio, the sophisticated owner’s cabin is furnished with a sofa, dressing area and vanity desk wrapped and stitched in Livorno Stone leather for a contemporary finish.  Further aft there is a crew cabin featuring two single berths and a private ensuite.

Externally, the Princess Y72 has a fantastic choice of outdoor spaces within the cockpit, bow seating and sunpads and expansive flybridge.  Generous seating arrangements and wetbar facilities enable you to make the most of al fresco dining and balmy evenings in the Mediterranean.  Enjoy water sports with ease with her large transom featuring a foldaway swim ladder and shower, along with a tender and water sports toys.

Expect speed and efficiency during your cruising, thanks to Princess Yachts’ signature design, ensuring comfort on the ocean.  Sit back, relax and enjoy your surroundings, as your experienced captain takes the helm.  A sophisticated experience and power to thrill.

‘ Our YachtQuarters shareholders have a dedicated Yacht Manager and access to our Concierge team. We take care of the calendar, the maintenance, the insurance, the berthing and the hiring of the crew. That means you get to walk on and off with zero hassle – and that makes the yachting experience all the more special.’

Joshua Cleaver, Princess YachtQuarters Manager

‘The YachtQuarters programme offered the perfect solution – a unique kind of yacht ownership that is less financially demanding than buying outright to see if I like the idea of owning a yacht.  The Princess brand gave me confidence that it would offer great service, and would make everything as easy as possible having the back-up of a concierge, team of experts and a yacht manager, and even crew.  It gave me great peace of mind and a really tailor-made walk-on, walk-off yacht ownership experience.’

James Swift, Princess 68 YachtQuarters Owner

New cruising destinations to discover

Princess Motor Yacht Sales’ YachtQuarters boats are primarily based in Mallorca for exploring the beautiful Balearics, but the new Princess Y72 will also enjoy cruising to St Topez in the second year and potentially Italy in the fourth year.

For further information about the new Princess Y72 and the Princess Yachts fractional ownership programme, YachtQuarters, visit: www.princess.co.uk/shared_yacht_ownership/princess-y72-shared-ownership/ or call Joshua Cleaver on: +44 (0)1489 557755.

*destinations correct at time of posting

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Fractional Ownership Guides

The 2023 definitive guide to fractional ownership.

Fractional ownership gives those looking to invest in a vacation home the power to purchase next-level luxury for less investment. The same co-ownership model applies to many high-end assets aimed at the aspirational consumer. But how do you know if they are legitimate fractional ownership or not?

Here, we investigate the true fractional ownership definition. We check out the benefits so you can decide if it’s right for you. Read on for an in-depth, updated 2023 guide to everything fractional ownership.

What Does Fractional Ownership Mean?

The definition of fractional ownership is quite simple. If you break down the words, then you have the answer instantly. ‘Fractional’ refers to the asset being equally split into fractions so that the costs can be shared. ‘Ownership’ is the owned interest of the fractions.

Fractional ownership is where two or more people choose to co-own an asset benefitting from shared costs and benefits.

The vital part of this definition is the word ‘ownership.’ Always make sure that you own part of the asset when looking at anything sold through a fractional ownership model.

The fractional ownership method is not something new; you only need to look at the stock market for another example. An investor can buy shares of a company. Suppose, for example, you purchase 50 shares in your selected company. In this case, you have partial ownership of the company with those 50 shares until you decide to sell them. In the meantime, you and all the other company shareholders will benefit from any dividends and share growth over time.

How Fractional Ownership Works

Interested parties enter an ownership arrangement whereby they agree to co-own a property (or another asset) with several like-minded individuals. Owning a property abroad is a dream shared by many. Let’s look at how the fractional ownership agreement would typically work for co-owning a property through a reputable developer, step by step.

• The real estate property is usually purchased through a Limited Liability Company (LLC).
• The property is then divided into equal fractions, with buyers typically able to purchase 1/8 or 1/12 fractions.
• These fractions are freehold, and each co-owner holds a deeded share of the asset’s title for each share purchased.
• Investors can purchase one or more shares in the property, dictating the amount of time spent at the property. The exclusive usage per year is generally four-five weeks per 1/12 fraction, depending on the original agreement.
• The properties are typically taken care of by a property management company that deals with the property’s upkeep, maintenance, and repairs. The associated and annual running costs are split equally between the property co-owners.
• You will own the deeded fraction in perpetuity if it is actual fractional ownership. Your titled interest should also be sellable and willable.

There are many fractional ownership properties for sale. The Fractional Group will thoroughly vet any potential developers, ensuring you see the best, high-quality fractional homes on the market.

Is Fractional Ownership the Same as Timeshare?

No, real estate fractional ownership is NOT timeshare. Timeshare is what it says—you buy a share of time to use each year. You don’t possess ownership rights to the physical accommodation you stay in each time you visit. You are paying to stay for a set amount of time each year, usually at a resort or hotel. There will be a maintenance fee to pay to the resort where the timeshare is based. There will be no ownership of the physical property asset.

As we explained earlier, true fractional ownership allows you to purchase a share of the freehold property. Owning a slice of the asset. Each fraction typically comes with four-five weeks per share (allowing all co-owners exclusive annual usage). You hold a deeded share of the property title and will profit from any capital appreciation over time. The asset is owned outright by a definitive number of the fractional property owners. The number of owners generally doesn’t exceed twelve.

Many timeshare resorts also use other terminology to talk about their product. You’re likely to hear phrases like private residence clubs, fractionals, destination clubs, and condotels, to name a few. The use of the word fractional can understandably be confusing when applied to timeshare. Especially as the purchaser is not typically given anything other than the usage of time.

Check out our latest article, Fractional Ownership vs Timeshare: What’s the Difference . This will give you a thorough understanding of how actual fractional ownership is very different to timeshare.

Popular Types of Fractional Assets

Owning a fraction of something allows you to join others and share the cost of an asset. Ultimately, investing less initially will prove a more cost-effective option.

Many business sectors are realizing the appeal of this model. This is why fractional ownership operates in and beyond the real estate industry, as you can own a fraction of most tangible assets. Art, a private jet, aircraft, boat, yacht, supercar, or house—all of these can be fractionalized.

The fractional ownership model is prevalent throughout the luxury market. The main reason for this is that it gives one the opportunity to co-own a luxury asset like a high-end villa, a private jet, or a supercar that may have otherwise been out of financial reach.

Fractional Ownership of Aircraft

Popularity in fractional ownership of private jets has rocketed over the years. We are seeing businesses primarily using the method to potentially lower corporate travel costs. The program could prove cost-effective to regular private aircraft users as they effectively only pay for the time they fly.

How it works

The fractional ownership aircraft programs will offer multiple owners shares in aircraft ownership via fractions. These shares will guarantee a certain number of flying hours or days for a particular aircraft type throughout the year. And are generally sold in 1/16 or 1/8 fractions.

Some well-known management companies offer fractional ownership programs for aircraft, including NetJets, Flexjet, Planesense, and Airsprint. Each company gives its fractional owners the right to use a choice of similar aircraft from their fleet. This usage comes with an agreed number of hours. NetJets owners typically own shares sold in 25-hour increments. The minimum purchase is of 50 hours for ownership of the aircraft asset for three years upwards.

Fractional Ownership Aircraft Costs

Hassle-free is the name of the game once again, just like with fractional ownership homes for sale. The owners eliminate the worry of actually looking after the aircraft. No maintenance or insurance to arrange or other services that come with owning a plane like the hangarage and catering.

You will pay extra costs such as a monthly management fee and a shared percentage of the costs with other owners. There are no operational issues to be concerned with. Simply turn up and fly in a fully prepared aircraft—often with just a few hours notice!

Always check the small print regarding the length of aircraft ownership time. Some companies can stipulate this to be a minimum period of five years before you can sell. Also, with fractional jet ownership programs, there are additional costs to be aware of. These include a charge for each hour you fly, along with fuel surcharges, to name a few.

Unlike bricks and mortar, aircraft–even the most high-spec jets, will suffer from capital depreciation over time. So be sure to factor this into your costs. Some operators will guarantee to buy back your share after a certain number of years. Good to know that if you stop flying, there is the option to recoup a percentage of your investment.

Ultimately, if you travel by private jet and want to own your own aircraft minus the hassles that come with it, then owning a fraction could be right for you. Co-owning will eliminate the necessity for a considerable capital outlay. And selecting a renowned company with a large fleet will give you access to your aircraft or similar in which to use your flying hours—potentially giving you access to a whole fleet!

Fractional Ownership Boats

The thrill of being on the open water is a big enough lure for most potential boat owners. Thoughts of crystalline waters and packing up the diving or snorkeling equipment, some quality family time, and relaxation are things we’ve all dreamed of at some point in our lives. But what about the reality? Let’s explore why fractional ownership of a boat might be a good thing.

For starters, there’s the high price tag of a quality yacht, and then there’s all the boat maintenance to consider. The cost of mooring, staff costs, fuel costs—the list goes on. More than the cost, we’re realizing more and more that people have a finite amount of time to enjoy their time away and just don’t want the hassles that come with owning outright and which eat into this precious time away. Cue fractional boat ownership—the flexible way to part-own your very own boat minus the large outlay and ongoing responsibilities of looking after and maintaining it.

As with all true fractional ownership, you will jointly own the physical boat or yacht asset. For fractional or shared ownership of a boat, you’ll enter into an agreement to purchase a part-share of the boat with a number of other owners. This number can vary from two, three, four, or more—so check your budget. Each owner is assigned a set number of days’ usage each year proportional to their investment.

Boat Ownership Costs

As for costs—you will pay for your share or fraction of the yacht followed by your percentage of the ongoing running costs, which cover insurance, berthing, maintenance, and maybe crew, depending on the agreement. With all this taken care of for you, you’re free to simply turn up and enjoy the boat during your exclusive usage time and leave the hassles of yacht admin and the general ‘looking after’ of the boat to the managing agent. You will get to enjoy all of the fun of owning a boat without the stresses that come with owning one outright.

Another advantage of co-owning a boat is that it allows you to move up to the next-level yacht for less. While the plus points are many, you need to ask yourself a few questions before deciding if investing in a part-share of a boat is for you. For example, while it is possible to move the fractional boat to another location, this is something that all fractional owners must agree upon and will need to be planned well in advance.

You will also need to book ahead to secure your time on board, so this probably wouldn’t suit those who prefer to book things last minute. A fractional boat program can save a lot of time and stress, proving a perfect choice for those that don’t have the time or funds to own a boat outright.

Fractional Ownership of Real Estate

We all have that property on our wish list, whether written down or in our heads. Some of us will eventually own the vacation home of our dreams, while others will compromise, looking for something within budget or opting to keep it on the list to look at again one day in the future.

Let’s face it, buying property is expensive, but purchasing through fractional ownership is becoming more commonplace nowadays, especially among those looking to invest for less.

Hailed as the intelligent way to own that dream vacation home, this refreshingly uncomplicated way to co-own a luxury second home makes dream vacation home ownership accessible to those who previously deemed it out of reach. With more and more fractional ownership luxury homes entering the market, there are more opportunities than ever before. Buyers are seeing that they can make their investment (and exchange rate!) go further by investing less in a high-end property that can be enjoyed each year whilst leaving the stresses of running it to someone else!

Whether you’ve got your eye on that luxury villa in Italy with sweeping views of the coastline and the sparkling Mediterranean Sea, or the uber-modern condo in the historical town center, it’s fair to say that these price tags will be on the high-to-incredibly-expensive side. But that doesn’t have to stop you from landing the property of your dreams.

Suppose you were to purchase the whole property, then yes, in this high price bracket, a lottery win could prove more than helpful! Even after such a windfall—if you have four weeks’ vacation time a year, it might still prove too time-consuming to maintain or deal with the possible rentals or vacant time. The simple solution is to buy some of the property and not all of it, thereby giving you some of the running costs to pay but not all of them.

Typically, high-quality vacation homes are divided into fractions and sold to a group of co-owners, as we explained earlier. Popular with investors from Europe, the US, Canada, and, more recently, the UK, the best fractional ownership properties come from trustworthy and legitimate developers who offer an easy way to access next-level luxury through purchasing and owning a fraction of freehold real estate and equity in a stylish home that could be straight out of a magazine!

Is Fractional Ownership a Good Investment?

Fractional ownership has become a fast-growing space and is being seen as a good investment due to its lower acquisition cost for a higher-value product. Fractional vacation home ownership makes properties in the higher price brackets more accessible and more appealing to anyone looking to own a slice of a luxury second home.

Whether fractional ownership is a good investment for you or not will depend on the reasons you are investing in the first place, so it’s wise to ask yourself a couple of questions.

• How often will you visit the property?
• Will you be managing the property upkeep or know someone locally when you’re not there?
• Will you be renting out your vacation home?
• Are you aware of the country’s local laws regarding owning property?

Uncomplicated Property Ownership

As so many people get carried away with the dream of owning an abode abroad, the cold hard reality often stops them from going ahead with their plans. Additional unexpected costs can scupper even the most thought-out plans.

If you want somewhere, you can visit for two weeks here and two weeks there; fractional ownership might be right for you. As you literally are paying for the amount of time you are using, you can move up the property bracket to that property of your dreams and purchase a fraction of it with other prospective owners. Not only do you have co-owners with whom to share the running costs, but you have the developer’s knowledge to assist you in navigating the purchase process.

Are fractional ownerships a good investment? Well, If you’ve always aspired to own that beautiful villa with a stunning infinity pool where you, your family, and friends can enjoy spacious rooms and relaxing spaces, why settle for an apartment with no view? Your fractional ownership vacation home could be more accessible than you first thought. Also, owning a fraction of a high-quality built property in a salubrious area could allow you to benefit from any capital growth. It could also enable you to generate a rental income on any property time you decide not to use, making fractional ownership a good investment for your lifestyle choices.

Advantages and Pitfalls of Fractional Ownership

Unless you move permanently to another country and buy a house where you will spend all of the year, the likelihood of using a second home abroad for much more than one to two months a year is pretty slim. This factor, along with getting a more luxurious property for less, raises the question of “why pay for more than you will use?”

Five advantages we see of buying a fractional ownership vacation home are

• Enjoy a more expensive property for less investment
• Less burden by being able to share all the running costs with your co-owners
• Fewer worries over the property remaining vacant for periods of time
• Less hassle as the property management company takes care of the running of the property, leaving you to enjoy quality family time from the minute you arrive.
• Enjoy asset appreciation on your fractional ownership vacation home

Fractional ownership pitfalls will vary depending on your property search requirements and intention behind purchasing a property. Every buyer has prerequisites when selecting a location and making a second home purchase. There’s more to read on fractional ownership pros and cons . It is worth doing the homework first to see whether buying fractional home ownership is a better option for you than purchasing a vacation home outright.

What to Look for When Choosing Fractional Ownership Real Estate Companies

As with any investment, you must do some homework to ensure you are dealing with a legitimate company. As you begin your research, ask a few basic questions to help you find the developer or real estate company that is right for you.

• Do they have a successful track record of fractional ownership properties?
• Are the fractions freehold and deeded?
• Are the properties purchased through a Limited Liability Company?

Suppose the location of the fractional vacation home you are interested in is in a country where you are unfamiliar with the language and local tax and property laws. In this case, it is prudent to check out the support offered to you during the buying process to prevent you from becoming frazzled and out of pocket. Remember, buying a fractionalized property aims to eliminate the stresses of owning a whole property and save money!

We cover some of the benefits in 5 Reasons Why Fractional Ownership Vacation Homes Make the Best Second Homes.

Any fractional ownership companies serious about their properties will be able to arrange an Inspection Visit. This gives you an opportunity to check out the location and properties first-hand. And allows you to familiarize yourself with the area while asking questions about the buying process.

We will continually add new developers and properties to our website at the Fractional Group. They will only appear online after we thoroughly vet the developer, saving you time and energy searching the internet.

How many weeks are typical of fractional ownership?

This depends on the company and agreement. As a rule of thumb, you can usually expect 4–5 weeks of exclusive usage per year per fraction.

How to sell fractional ownership?

With a fractional ownership property, you can look at it the same as you would if you purchased a property outright. The attraction would still be the location, style, exceptional finish and design, and property value. These factors remain the same when you come to sell your share of the property. The apparent difference is the number of fractions you purchased in the property to sell. The first refusal will usually always go to the other co-owners of the property, thereby creating a pool of possible interested parties. We’ve collated many more answers to the most frequently asked questions about fractional ownership so you can be more informed when searching for your dream property. Check out our FAQs page for more top tips.

Luxury Vacation Homes for a Fraction of the Cost

In this article, featured property.

Villa Velius

• Ogliastro Cilento, Salerno

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The Positive Impact of Fractional Ownership On The Sharing Economy

The Secret to Affordable Luxury Property: Why Co-Ownership Vacation Homes Are Taking Off

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• February 17, 2024

Fractional Yacht Ownership: Everything You Need to Know

Thinking about getting into yachting but worried about the cost and hassle? There’s an option you might not have considered: fractional yacht ownership. This guide will explain what it is, how it works, and why it could be a great choice for you.

What is Fractional Yacht Ownership?

Fractional yacht ownership means you share the cost and access to a yacht with other people. Instead of buying a whole yacht by yourself (which can be pretty expensive and a lot to look after), you own a part of it. It’s like owning a slice of the pie. You get to enjoy the yacht for certain times of the year without dealing with all the headaches of full ownership.

• Saves Money : Sharing the costs means you spend less money but still get the luxury experience.
• Less Work for You : There’s a company that takes care of maintenance and everything else. You just show up and enjoy.
• More Options : You’re not stuck with one yacht or place. You can try different yachts and locations over time.

How Does It Work?

Fractional yacht ownership isn’t complicated. Here’s a quick rundown of how most people do it.

Choosing a Program

There are lots of different options out there, so you’ll want to find one that fits what you’re looking for in terms of yacht type, location, and how often you’d like to use it.

The Agreement

You and the other owners sign a contract that spells out everything important, like who gets the yacht when and who pays for what. This helps keep everyone on the same page.

Time to Sail

You book your time on the yacht based on the system the managing company sets up. It’s designed to be fair so everyone gets their turn without any fuss.

Why Consider Fractional Yacht Ownership?

Here are some of the big reasons people like fractional yacht ownership:

• It’s Affordable : You get the luxury yacht experience without the full cost.
• It’s Easy : The managing company handles the hard stuff. You enjoy the sail.
• You Have Choices : Try different yachts and visit different places without being tied down.
• Meet New People : You’ll be part of a community of yacht owners. Great for networking and making friends.

Is It Right for You?

If you love the idea of sailing on a yacht but don’t want to deal with all the expenses and hassle, fractional ownership could be perfect. It’s all about whether you want the perks of yacht life without the full commitment of owning one outright.

• Ideal for people who want to sail part-time.
• Great if you love trying new experiences and locations.

In the end, if getting onto the water in a hassle-free, cost-effective way sounds good to you, it might be worth looking into more. And if you’re looking for a trusted partner in your yacht ownership journey, Fly Yachts is here to help. We know the ins and outs of fractional ownership and can guide you through the process, making sure you find the right fit for your sailing dreams.

Fly Yachts offers everything for those interested in yachts, from buying and selling to planning a yacht trip. If you’re looking to buy a yacht, theirs  Yachts for Sale  page lists numerous luxury options. For custom yacht enthusiasts, the  Build a Yacht  page details how you can create your dream yacht. Sellers will find the  Sell Your Yacht  page helpful for navigating the sales process. For those dreaming of a yacht vacation, check out yacht rental choices on the  Yachts Charter  page and discover beautiful travel spots on the  Charter Destinations  page. Learn about Fly Yachts’ experience and services by visiting the  About Us  page. The  Compass Articles  page is great for reading up on yachting topics. Aviation fans might be interested in the luxury  Aircraft for Sale . For the latest yachting updates, swing by the  Gulfstream News  page. To get in touch or for more inquiries, the  Contact  page has all the details, or you can simply dive into their  Homepage  to see all that Fly Yachts has to offer.

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The Monocle Advantage

• Monocle’s program is the only comprehensive Fractional Yacht Ownership program in existence today.
• We have the largest Fractional fleet available in the world.
• Our worldwide resources and fleet purchasing power save our owners time and money.
• The ability to “exchange” your time with other yachts around the world is available.
• Conscientious and complete management expertise since 1964.
• Our passion is to make your yacht ownership experience both affordable and enjoyable.

What does this mean to you?

• You no longer have to spend millions of dollars to enjoy the pride of ownership and the prestigious yachting lifestyle.
• We remove you from the daily frustrations and hassles incumbent with yacht ownership, allowing you total relaxation and enjoyment.
• Because of Monocle’s net pricing policy and fleet purchasing power, it is impossible for you to obtain or operate a yacht for less money than Monocle.
• Your cost per day, per person, is significantly less than a land-based resort vacation and, because you own the asset, you get the benefit of residuals when it sells.
• Monocle has made yacht ownership easy, affordable, and hassle free leaving you only four things to consider:
• What size yacht and how many staterooms do I want?
• How much money is in my budget?
• Where do I want to cruise?
• When can I go and who do I want to invite aboard?

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Yacht Fractional Ownership

Acquiring a yacht is one of the most special investments one can make. Yachts unlock dreams made of holidays in exclusive creeks worldwide, distant from the hustle and bustle of crowded resorts and close to secluded and exclusive beaches and rivieras. Yachts are also a tool to signify one’s social position. Notwithstanding this, like any other investment, it requires careful planning to minimise inefficiencies and consequently reduce costs. Contrary to other assets, such as immovables, whose value increases with time, yachts tend to depreciate quickly and are subject to high maintenance costs. For this reason, yacht owners aim to mitigate this financial burden. To mitigate such risks and offset, even partially, the investment made, owners tend to opt for mixed-use of the yacht by chartering her to third parties. Although this is a possible solution, there are also some negative aspects connected with yacht chartering:

• Impossibility of using her during peak season
• Use of yacht by third parties who might not treat her as their own to the detriment of her value
• Yachts would generally need to be stationed in the same part of the world to minimise relocation costs
• Engagement of third-party advisors and fiscal representatives to assist with VAT and other related tax compliance matters
• Increase in insurance costs related to the commercial use of yachts
• Increase maintenance and refit costs to ensure the yacht could be registered as commercial and be compliant with the commercial yacht code

Chartering, however, is not the only option to recover costs related to acquiring the yacht. In fact, over the last few years, fractional ownership has proven to be a valid alternative to chartering.

How does fractional ownership work?

Yacht fractional owners own a share or portion of a yacht jointly with other persons who can use the same depending on the terms and conditions of the ownership agreement between all parties. Contrary to a time-sharing arrangement, which grants a right of use only for a limited period, fractional ownership gives a title of ownership (although in common with other persons) and a return of price in case of sale to third parties.  Fractional owners could either acquire a share in the yacht directly or indirectly through the setting up, together with other persons, of a company that will be the yacht’s registered owner. The latter option could provide direct and indirect tax efficiencies if adequately structured. Fractional ownership allows owners to use the yacht for a maximum period, which generally varies between 3 and 6 weeks. Fractional owners are also entitled to charter or sub-lease the yacht to third parties during the period assigned to them or sell their share should they not be interested in the continued enjoyment of the asset. Maltese law also allows the possibility of setting up shipping cell companies where the patrimony of each cell is separate and distinct from other cells, thus giving the shareholder an additional layer of protection and flexibility in structuring their ownership as the fractional right would be assigned to the cell.

Who should opt for fractional ownership?

People who know from the outset they will only be using the yacht for a few weeks a year and want to avoid dealing with third-party operators such brokers, marina agents, seafarers, and tax advisors would do well to consider opting for a  fractional ownership arrangement. These functions would be delegated to a yacht manager by paying a yacht management fee. Such a manager would be in charge of dealing with third parties concerning all of the above matters.

Fractional ownership is a formal arrangement meant to regulate the fractional use of yachts amongst more people by giving certainty on the rules to be adopted and avoided or at least reducing conflicts with service providers and between the fractional owners.

How is the amount of time used decided?

This depends on and is usually proportionate to, the investment made in the yacht.

What are the benefits of fractional ownership?

• Financial: one significantly saves the total purchase price by acquiring a portion of the yacht.
• Saving Time: time spent coordinating the yacht’s management, maintenance, crew employment-related matters, berthing, insurance, and fiscal issues, amongst others.
• It is easier to dispose of the interest in the asset.
• Possibility to change yachts should the fractional owner not be interested in that model. Some fractional ownership organisations even maintain fleets based in different geographical locations.

What are the disadvantages of fractional ownership?

• Sharing the yacht with other people, the impossibility to personalise the yacht and choose particular crew members.
• Use of the yacht is possible during specific periods only and restricted to particular geographical locations. Suppose the yacht is always based in the Mediterranean. In that case, a user cannot decide unilaterally to move her to the Caribbean to return to the Med region again unless most owners (based on a contract of use) choose otherwise.
• The yacht might be unavailable during certain parts of the year if already booked by other fractional owners or under maintenance.

What are the VAT implications, if any, for fractional ownership?

Regarding the EU VAT legislation, supplies of goods or of services made by a taxable person acting as such in return for consideration within the territory of a Member State are subject to VAT unless specifically exempted. As such, transactions that cumulatively meet these conditions are said to fall within the scope of EU VAT, whilst transactions that fail to meet any of the requirements are classified as falling outside the scope of EU VAT, which is to be disregarded for VAT purposes. A transaction deemed to fall within the scope of VAT has then to be methodically analysed to determine its correct VAT treatment, most significant, where it is to be taxed, whether an exemption applies and if not, who would be the person liable to pay the VAT to the tax authority. It is in the background of these concepts, that the numerous transactions contained in fractional ownership, from ownership to management, need to be assessed to establish the appropriate VAT treatment and resulting implications.

As a point of departure, ownership, per se, even if partial and undivided, does not render the owner a taxable person for VAT purposes unless he carries out an economic activity. In the fractional ownership set-up, the owners would not be carrying out an economic activity since each would be using the asset (the yacht) privately. Selling a fractional share would likewise fall outside the scope of EU VAT since the seller (the fractional owner) is not a taxable person for VAT purposes in that he is not in the business of selling or trading in shares in yacht ownership, that is, not carrying out an economic activity. The yacht’s purchase, management fees, operational and maintenance services necessary for the functionality and upkeep of the yacht all appear to be supplies of services subject to VAT. As a rule, the VAT incurred by the management company will be deductible to the extent that it is attributable to its taxable supplies, namely the management fees and recharges claimed from the owners in proportion to their fractional share. The owners, however, have no right of deduction, and the VAT incurred should constitute an irrecoverable cost. Given that in the fractional ownership model, expenses are shared; the VAT cost would thus be less burdensome when compared to full ownership of a yacht.

How do you understand if fractional ownership is the right solution for you?

Fractional owners need to understand if they want the yacht exclusively for themselves or not and whether they are willing to share it with strangers and be able to use it only for specific parts of the year.

On the other hand, all those aspects concerning her maintenance would be delegated to third parties, thus rendering matters easier for the end user. Lastly, fractional ownership would permit the benefit of a yacht at a reduced price, and if one uses a yacht for a few weeks a year, savings would be much higher than the ones made under a charter option.

Charles Vella

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How We Sell Your Boat

We will market your share for as long as it takes to sell, sometimes this is very fast – overnight is not unusual – and sometimes it takes a long time. Our philosophy is that all shares will sell.

The right boat in the right place at the right price will sell readily.

Fee – We charge 6% of the sale price on a ‘no sale no fee’ basis – see our full Terms and Conditions  

To market your share we require;

• Your name, address, phone numbers and email
• Full details of the boat
• Location of the boat and mooring arrangements
• Size of share
• Asking price of share
• Annual running costs – this should include: moorings, insurance, normal routine maintenance, some provision for annual upgrades and replacements but not major capital investment.
• A good selection of photos

If it is a boat which is new to Yacht Fractions and so we do not have a history of ownership we will need to see proof of ownership and VAT status and your share agreement.

Before you market your share you should inform the other owners that you wish to sell. Many share agreements allow the other owners the right to buy a share at a fair market value.

You can let us have the details:

• By completing our on-line ‘Add your boat’ If your boat has been for sale previously with Yacht Fractions then there will probably be an archive file which the system will offer you to update.
• By sending an email with a Word document with the details and jpg images
• We can send you a form to complete and return by mail or email.
• We will then vet the content, get you to approve the content, and then put it live on the website.
• Once we have attracted a potential buyer we will contact you by phone or email with details of their experience and qualifications, and any specific requirements they may have which are important to their purchase. Typically this is a need for school summer holidays which not every group is able to offer.
• We will ask your permission to release your contact details to the buyer.
• We will give the buyer your contact details and ask them to contact you.
• Please be patient with us – we receive a number of enquiries from individuals who, after initial contact, sink without trace. Please be assured that we do our best to qualify the enquiry before passing them on to you, and do follow up if they don’t respond.
• If the boat is in the UK then this will hopefully result in an arrangement to view the boat. If the boat is abroad the majority of shares are sold unseen.

The deal will be agreed through Yacht Fractions and will involve:

• Completion date
• Any conditions which need to be fulfilled prior to completion, these will include:
• Acceptance into the group by the other owners
• Acceptance as skipper by the insurance company
• Acceptance of the share agreement by the buyer
• Any other items specific to the transaction

If there is to be a delay in completion between agreeing the deal and completion then Yacht Fractions will issue a   Sale agreement  which will take a 10% (min £1000) deposit. It will define the conditions under which the deposit could be returned to or forfeited by the buyer.

At the point of completion, Yacht Fractions will raise a  bill of sale

Once Yacht Fractions is in possession of Bills of sale from both buyer and seller, and the purchase funds the completion will take place. The seller will be paid [less our fee], and the bills of sale exchanged between both parties.

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The Yachting World Has Been Slow to Embrace Fractional Ownership—Here’s Why

“a big reason is most yacht owners don’t like to share,” says tankoa ceo vincenzo poerio., michael verdon, michael verdon's most recent stories.

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“It’s a logical business model that gets an illogical reaction from the yachting community,” says Vincenzo Poerio, CEO of Tankoa Yachts . “A big reason is most yacht owners don’t like to share,” he says, adding that those who are willing tend to have very high expectations. 

Another challenge is that, beyond vessel and crew management, fractional operations are expected to provide white-glove services. A success story in this marketplace is SeaNet , which began its shared-ownership program 18 years ago in California and now has a fleet of Benetti superyachts sailing the Mediterranean and the Caribbean. 

“Benetti’s a name our clients are comfortable with,” says Mike Costa, SeaNet’s founder and CEO. “We acquired our first in 2016 and are now moving to our sixth Benetti, the 34-meter [approximately 111-foot] Oasis, currently in build.” SeaNet limits owner shares to four to maximize the number of weeks on the vessel. “We don’t want it to ever feel like a time-share or a use-it-or-lose-it situation because of the scheduling,” he says. SeaNet rotates owners each year during holidays and peak seasons for “equal prioritization,” as Costa puts it. Its fleet also includes luxury watercraft from Absolute , Sunseeker and VanDutch . 

For around $4 million per share, each owner receives 31 days of usage, and Floating Life does its best to personalize the onboard stay, whether that means installing private art or procuring favorite wines and other culinary preferences beforehand. “The owners don’t need to take care of anything,” says Filippo Rossi, Floating Life’s chief commercial officer. “When they’re done, it’s like leaving a hotel room—no worries about crew, cleanup, maintenance or the other issues that come with yacht ownership.” 

Which sounds great, but it begs the question: Why hasn’t Floating Life found the full roster of buyers it needs to start building the Dream 42, particularly with today’s record demand? “It will always be a niche,” Rossi says. “Fractional will never revolutionize yachting. A yacht is simply too difficult for most companies to manage.” 

Florida-based AvYachts jumped feet-first into the fractional pool in 2017 but eventually sold its Westport 130 and Westport 112; it’s still in the game, though now as more of a brokerage service that matches two owners with single yachts . It has no interest in the post-sales management side of the business, focusing instead on what founder Kathy Kennedy calls “shared ownership solutions.” 

Patrick Gallagher, president of NetJets , calls the fractional-yachting concept “a fascinating model” but understands its shortcomings. “It doesn’t have the mix of business and leisure that complement each other,” he notes. “We also have guaranteed access year-round, while demand in yachting seems much more seasonal.” But, he adds, it could be a viable maritime model if someone “brings it to scale with the right operational restrictions.” Clearly easier said than done.

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NEW SALES FRACTIONAL OWNERSHIP BROKERAGE

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Fractional Yacht Ownership & Yacht Share

The unique and rewarding experience of luxury boating is within reach through SeaNet’s five-star Yacht Share services. Our fractional yacht ownership program allows you to enjoy the freedom and comfort of a multi-million dollar luxury yacht, without the hassles and expenses that come with owning it.

By co-owning and sharing the cost of the yacht, the luxury lifestyle you’ve dreamed of is within your grasp at a fraction of the price. From formally entertaining guests, to cruising the coastline with friends, the memories made on board your private yacht are irreplaceable.

Your turnkey yacht ownership experience is entirely managed by our expert concierge team. We handle all facets of the management end of your yacht ownership including insurance, dockage, maintenance, cleaning, handling crew, and eliminate any other potential headaches that would disrupt your time on the water. You are free to sell your share of the yacht at any time.

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Sell your yacht with seanet, professional yacht brokerage services or sell your yacht into fractional ownership.

Whether choosing to sell your yacht through our professional brokerage services, or you wish to place your current boat into a fractional ownership program, SeaNet has the expertise, network, and marketing Our brokers are professional, diligent and driven when it comes to making that new step in your boating lifestyle. Our in-house marketing time supports our brokers’ efforts by selling your vessel using top digital marketing and advertising tools.

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