Charter management schemes

[Hollyoak]

I am currently considering an offer from a south coast based company who
sell yachts, provide finance packages, maintenance and charter management.
The deal which I am looking at involves the purchase of a Feeling 32 yacht
with a full inventory "professional pack" which will also give the yacht
coding to allow it to be chartered. In essence, the company is offering a
complete package and even guaranteeing the level of charter income which you
will generate from the deal. You will receive approximately 5% of the new
value of the yacht pa which will almost repay the instalments on the marine
mortgage. The only other expenses which the owner would have to pay would
be the annual insurance premium at 1% of the value of the yacht. Even the
cost of mooring the yacht is included.

As the owner of the yacht, you would benefit from the increasing equity held
in the yacht as the marine mortgage is paid off; after five years you would
have over 50% equity in the yacht. As part of the deal, you have use of
your yacht for two weeks and two weekends in the high season, three weeks in
mid season and as much as you like in the low season. If the charter
company have not chartered your yacht out for a week or a weekend, you may
use it at short notice and if your yacht has been chartered out and you
would still like to sail, if there is any that yacht available in the fleet
you may use that for the sum of one penny.

When I was told about this, it seemed to good to be true but I have since
spoken to some people who are quite satisfied customers of this company. I
see it has a good option for myself because I would like to own a yacht but
not have the hassle of maintenance etc., Also, I would not have as much
time as this scheme would allow me to sail anyway.

When you look at all of the figures on a spreadsheet and taking into account
that if you do this as a business and take advantage of tax and VAT breaks,
you can make additional savings, it begins to look like a realistic
proposition. Remember that it usually costs £1000 per week to charter a
yacht of a similar standard and you have the use of this yacht for at least
five weeks throughout the year.

I would be grateful if anyone reading this news group who is involved in a
similar charter management arrangement could offer me any advice based on
their experiences and my findings as above.

Regards,

Steve.

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Steve West G4 VDE
Hampshire
UNITED KINGDOM