Advice on chartering – Chartering, put simply is the ‘hiring out’ of vessels. Chartering arrangements are entered into by boat owners running a chartering business, or by boat owners entering into short term occasional charter arrangements to help with the cost of their boats. The two most common types of charter are bareboat and skippered charter. If you are considering chartering your vessel contact YachtingLawyers to discuss early considerations. We strongly advise entering into a contract with intended charterers to manage the owner/charterer relationship which deals with any potential conflict arising.
Setting up a charter company – If you are an existing charter business, or perhaps you are looking to set up a charter company, contact YachtingLawyers; we would be happy to guide you through the process, from incorporating the company (company formation) to offering advice on joint ventures, shareholders agreements and partnership arrangements. Read our Boat Charter Company Guide.
Review and preparation of commercial contracts and agreement – You may be a business owner, a marina operator, a yacht broker, or other form of marine business. We offer a “Legal MOT Service” for businesses to review and update their current terms of business. Make sure your terms of business and associated documents reflect the business you are operating and are in-line with current law. This will protect your business and minimise any future exposed risk. The types of commercial contracts may include (not exhaustive list):
Yacht fractional ownership – This allows individuals to enjoy the lifestyle and use of yachts with perceived yacht ownership status without the expensive cash outlay, and responsibilities of ongoing operation and maintenance costs which are commonly associated with buying a boat. There are different types and various schemes operating as fractional ownerships, but the basic concept is that participants obtain a percentage share of a yacht. Shares are sold to individual owners referred to as ‘fractional owners’ who enjoy priorities and privileges; such as priority access on holidays to use the boat and income sharing. Typically, a company manages the asset on behalf of the owners, who pay monthly/annual fees for the management plus variable (e.g. per-hour, per-day) use fees. For rapidly-depreciating assets, the management company may sell the asset and distribute the proceeds back to the owners, who can then claim a capital loss and optionally purchase a fraction of a new asset. Contact YachtingLawyers to find out more about getting involved in fractional ownership.
Boat syndicates – This is becoming more popular as recreational boaters are electing to share the ownership of their boat between a number of syndicate members. Such form of ownership can help to ease the burden of the cost of purchase and on-going maintenance. Syndicate ownership of a boat can be between family, friends, sailing club members or strangers. Whatever the constitution of the members, it pays to enter into a written agreement setting out rights and responsibilities. Contact YachtingLawyers for help and advice on setting up a boat syndicate.
