Notes on prices: The price shown is the (sometimes approximate) asking price for the share. What is not always shown is the SIZE of the share, where the most popular size of share is 12th (8%) but some can be as large as 50% of the boat, so this should be always be taken in to consideration.
An interesting test is to take the price of the share, multiply it by the holding and then decide if the boat is worth what is "being asked for it". By example if a 12th share is £5,000 12 x 5 = £60,000 - is the boat worth that?
Shares are GENERALLY slightly OVER the boat value, so with a boat worth £60,000 a SHARE could be valued at slightly OVER £5,000 for a twelfth, say at £6,000 but certainly not much more over it's "true" value.
As a general rule if the price is high, then the size of the share could also be higher, and visa-versa BUT THIS IS NOT ALWAYS THE CASE so check carefully....
ALSO, and very importantly, some owners INCLUDE the "running costs" in the price of the share others do not and request these are picked up by the incoming owner from the month AFTER the month of transfer (usually). These are, on a standard 12th share on a 58' narrow boat in a private scheme about £100 per month (correct 2018) so if you are buying at the start of the year this can make a big difference in terms of the percentage of the actual cost of the share. It is threrefore best to look beyond the actual price being asked an look carefully at the detail, where, if not mentioned in the advert, you can assume as an incoming owner you will be asked to pick up the running costs on purchase. (Back to top)
Notes on schemes: In all cases of shared ownership boats advertised on this site the boats themselves are owned collectively by the owners and are free of lien of mortgage (but best to ask the vendor). Some groups of owners elect to manage the boats themselves where one owner does the bookings, one is the treasurer etc. other groups elect to appoint a company to do this OR the boats were built by the company named and then sold on in shares on the understanding that they (the company) will act as managing agent.
In the case of managed boats as long as all 12 shares in the boat have been sold (from new) then in the event of the managing agents going broke then the owners would still own the boat and the most the owners could loose is any money held on their part by the company for running costs etc. The shares SHOULD remain the property of the owners and NOT the managing company.
Some companies hold these funds in designated "clients accounts" but that is no guarantee of 100% safety for your money.
In the broad scheme of things your investment is generally very safe in any shared ownership operation advertised on this site but purchasers should make their own enquiries.