How to join and leave the Yacht Syndicate?

Ease of entry and exit are a key differentiator between shared and outright ownership of a yacht. Pearl Yacht Share are very keen to maintain a comparative ease to buy or sell a share in one of our syndicates.

As a result we have found that our shares generally change hands more rapidly, and with less complication than the sale of a whole yacht usually does.

This is because a share in a yacht is a much smaller transaction. A £300k outlay for a share in a yacht where you a only a minority stakeholder is much less daunting than a multimillion-pound outlay on the same vessel where you are wholly responsible and a lot more scrutiny is therefore essential.

Likewise with running cost, each co-owner only pays a small proportion. Any additional unexpected costs are also divided pro-rata, so the sum payable becomes much less consequential once divided among the co-owners.

A share in a Pearl yacht is generally less available than any outright yacht, of which there may be multiple similar vessels for sale at any one time. Whereas there is probably only ever one share for resale in one of our co-ownership yachts, meaning the exclusivity generally translates to a quicker sale at a less negotiated price. (Some of our yachts even have waiting lists of potential new owners).

A share in a yacht is a less risky transaction. When buying a yacht outright one always wonders what’s wrong with the yacht, and why the seller truly wants out? With a share one can fairly safely assume that it’s not the yacht that is the issue, as the majority of other syndicate members are happily staying as co-owners in that yacht.

A share in a yacht is a less complicated transaction. – When buying a yacht outright one needs to undertake a full survey, make sure there are no liens, the taxes are all paid and the service history is as it should be. With a share purchase, the other co-owners can openly tell you all about the vessel as they are not selling their share, and thus don’t have a conflict of interest in being candid. To the contrary, they will be your fellow co-owners in the future, so will want to be totally honest at the outset.

The yacht’s official papers won’t need to be re-issued, just amended to include you, which makes the sale/purchase process simpler. The syndicate agreement is the only document of significance. As that is legally identical to the agreement of the existing co-owners, it too will have already been scrutinised by the many past and present shareholding co-owners in your potential new yacht.