Q. What is fractional yacht ownership?
A. Instead of a single person purchasing a yacht on his or her own and facing the daunting responsibility and associated costs of taking care of it alone, several co-owners purchase one yacht which is then managed and maintained on behalf of the co-owners by a management company such as Hutton yacht Group.
As a result and of direct benefit to each co-owner, both the initial capital cost of the vessel and the on-going annual costs of maintenance, insurance, dockage, storage etc. are shared by the co-owners dramatically reducing each co-owners investment. The management company takes over the responsibility of caring and maintaining the boat.
Fractional ownership eliminates all the typical hassles of preparing the yacht for use. It is a "turn key" operation. Therefore owners have a more enjoyable experience, and quite often end up utilizing their yacht more than they typically would under a sole ownership format.
Q. Are the yachts factory new?
A. Each yacht associated with the HYG Fractional ownership Program are factory new yachts or recently fully reconditioned and fully surveyed.
Q. How many fractional shares per yacht?
A. The HYG Fractional Ownership Program allows a person (or company) to purchase up to 4 shares in a single yacht. There are never more than 4 co-owners of any individual yacht.
Q. Where are the yachts based?
A. At this time yachts will be based in Collingwood, Ontario. Ports scheduled for yachts at this time are Oakville, Ontario and Parry Sound, Ontario and Port Credit. As demand requires, more yachts will be added to existing bases and new bases will be established elsewhere on Georgian Bay and other the Great Lakes.
Q. When can I use my yacht?
A. Each ¼ share entitles you to ¼ of the entire boating season starting at "ice-out" and finishing at "freeze up" (conservatively estimated at 22 weeks). Each owner will have one week in every four at their disposal.
A random selection defines the rotation order during the first season. The following season the order is reversed. The third season utilizes a random selection to define the rotation order once again.
The minimum time that may be booked for a single use period is one week, even if the yacht is not actually used for the full week. Co-owners may trade their allotted times with other co-owners as they mutually agree as long as HYG is informed of the switch one week prior to the allotted time.
Q. Who can use and operate the yacht?
A. Fractional owners and their invited guests may use the vessels. Only co-owners or HYG qualified personnel may act as captain on any yacht in the HYG fleet. Each co-owner must show proof of an Ontario "Boaters Card."
Q. May I charter the boat out to other people?
A. No. One of the key advantages of the Hutton Yacht Group Fractional Ownership Program is that the yachts are used only by co-owners and are not therefore subjected to the potential abuse associated with non-owner operators.
Q. How long does the Program run?
A. Each yacht in the Program is sold after four years. The net proceeds from the sale of the yacht are distributed to the yacht owners pro rata based on their ownership portion.
If the co-owners choose to acquire another yacht at that time, the process is repeated for the newly acquired yacht.
At anytime during the program an owner may sell his or her shares on the open market with the proviso that any then current owner has a right of first refusal to acquire the shares on a cost value basis.
Q. How much does it cost?
A. The initial cost of the yacht and the corporate structure to support the acquisition is divided amongst the fractional co-owners in proportion to their individual shareholdings. Each share of the yacht purchased will be ¼ of the total acquisition cost of the yacht.
The maintenance costs, dockage, insurance, etc. including a management fee, are predetermined by Hutton Yacht Group and are as far as possible fixed for the duration of the four year program. These costs are shared by the co-owners in a similar manner as the purchase price. Monthly payments are made based on the estimates. Much the same as with sole ownership, in the unlikely event that the costs are greater than anticipated (for example an unexpected major engine problem), all co-owners will be informed and a special top up payment will be made at that time.
Co-owners are individually responsible for the cost of fuel and consumables used during their allotted time as well as any additional services specifically requested by a co-owner, such as concierge services etc.
Q. How is my investment protected?
A. A new Limited Liability Partnership is registered for each yacht. Co-owners become the partners of the Partnership. The directors of the Partnership are the co-owners and HYG. The only significant asset of the Partnership is the yacht. The Partnership enters into a management contract with Hutton Yacht Group for the duration of the Program. The yacht remains unencumbered and debt-free for the duration of the program. A key element of the Program is that HYG manages the process to ensure that the yacht is maintained and insured (covering hull, and liability) at all times during the program period.
Q. How do I proceed from here?
A. Contact Hutton Yacht Group Inc. using one of our contact methods on our
contact page here for more information about the Program and to arrange a personal conference to walk you through the remaining procedures.