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Friday, March 15, 2013

Part exchange your shared narrowboat?

A part exchange scheme has been launched by ABC Boat Management.  The idea is to offer a way of trading in an old syndicate boat in part exchange for a new one, commissioned to the syndicate's requirements.

Having battled with liquidators over the shares that Ownerships 'bought back' using owners money, my initial reaction to this was a bit cautious.  Our syndicate agreement on Sundowner has a safeguarding clause in it that specifically forbids any company or organization from owning an individual share.

But the key difference between this offer from ABC and any of the old buy back schemes is that it relates to the whole boat, not individual shares.

A couple of syndicates I know of have reached the end of the road and decided to sell their boat rather than face escalating maintenance costs.  This has resulted in the break up of the syndicate, with some owners finding shares in other boats and others giving up the shares altogether.

Extensive rust was the problem faced by the owners
of this 'mature' syndicate boat - not just on the hull,
but under the rubbing strakes that were just
tack welded in place.  Selling the boat
was the only realistic option.
This scheme, if adopted by a syndicate in the difficult position of needing to sell their boat, would give continuity to the syndicate and enable it to stay together to commission the new boat.  I think it's a welcome development that should strengthen the position of shared ownership in the marketplace.

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