Yacht Fractions Ltd

CHARTER MANAGEMENT SCHEME

• Furling mainsail (slab/lazy jacks by request and standard on some non Bavaria cruiser yachts) and Furling Genoa
• Electric windlass
• Electric fridge
• Microwave on Bavaria 38, 40
• Compass, Log, Echosounder, Autopilot, Wind instruments
• VHF/DSC, GPS/chartplotter
• Cockpit table, Cockpit cushions
• Bimini, Sprayhood
• Alloy boarding gangway
• Hot water and shower and cockpit shower
• Holding tank + electric toilets with seacock and deck valves
• Shore power, battery charger
• Dinghy
• Liferaft,Lifejackets and harnesses
• Full safety gear incl EPIRB
• Full galley equipement
• Full bedding and towels

THE PURCHASE SCHEMES

Each scheme is available either as a 3.5 or 5.5 or 6.5 year term, or we can arrange special length contract if you prefer. SCHEME 1 - The partial payment method

In this scheme you pay one single amount at the start of the contract period, this is a proportion of the value of the boat and its equipment from 49% to 76% depending on the length of the contract and the size of the boat and the location.

The balance of the capital value of the boat is paid for from the charter rentals, this is guaranteed irrespective of the success of the company to book charters on your boat.

SCHEME 2 - The minimum deposit scheme - 5.5 year contract

In this method you pay an initial deposit of 35% of the capital value of the boat plus the local costs and take out a loan over 5.5 years of to bring the capital paid the same as in Scheme 1

Interest is charged at a fixed 7.0% PA

There is a loan administration set up fee of 2.2% of the capital value of the loan

The loan is secured on the boat and guaranteed by the Company, thus there are no credit checks and no forms to complete.

There are no interest penalties for early settlement of the loan

The balance of the capital value of the boat is paid for from the charter rentals, this is guaranteed irrespective of the success of the company to book charters on your boat.

SCHEME 3 - The guaranteed income method

In this scheme you pay for the whole of the boat at the start and receive a guaranteed income on the capital value of the boat on an annual basis. The percentage paid depends on the length of the contract and the size of the boat.

Used boats available on new contracts
There are a few boats which remain unsold at the end of each year, these are available to be purchased on new contracts at a discount or on a shorter contract term - or both ALL SCHEMES
Local costs as shown above include, Delivery, local equipment and Greek registration

DELIVERY
There can be a saving of local delivery costs at other locations, for boats delivered to Greece, Turkey, Malta and Sicily, Croatia (French boats) a cost of Euro 3000 is included in the "local costs".

Owners may make the delivery from South France to the charter base - please discuss LOCAL EQUIPMENT
These are charged at Euro 1500 and included in the figure of Euro 9000 in the tables above. The cost is made up from supply of bedding, towel, galley equipment, charts pilots etc

GREEK REGISTRATION
The charge for registering the yacht on the Greek register of shipping of Euro 4500 is included in the figure of Euro 9000 in the tables above.

For yachts which are 100% paid and based in Turkey UK, SSR registration can be used which will save the Greek registration costs (see also VAT below),such boats must be coded to MCA standards which can incur extra equipment and survey costs.

RUNNING COSTS
All other costs involved in running the boat and maintaining in good condition are met by the charter company.

END OF CONTRACT
At the end of the 4th/6th/7th season the boat is handed over to the owner in good condition with a full inventory as delivered plus a full set of sails no more than 12 months old, the engine will be fully serviced.

Early retirement can be excersized in writing by the 15th August each year with no penalty. The outstanding capital amount is paid on 31st October of the same year. The amount unpaid reduces by one-quarter (3.5 years) or one-sixth (5.5 years) for each year passed.

The yacht will be removed from the Greek registration and transferred to your name or to that of an appointed person or company. There is a legal charge for this of Euro 1200

If the boat is transferred to an EU resident/passport holder then VAT will be payable on the value of the boat determined by a sliding scale relating age to original cost. Typically this is about 60% at the end of 6 years.

VAT is currently at 23% in Greece

USE OF BOAT BY THE OWNER
Dates given are for 2011 and may vary slightly from year to year, they also vary from area to area, for Greece the period are :

Low season	before 21/5 and after 1/10	6 weeks or
Mid season	21/5 to 30/7 and 20/8 to 01/10	3 weeks or
High seaon	30/7 to 20/8	2 weeks
or a combination thereof

Plus an additional 4 weeks short notice use out of which 2 weeks must be on your own boat. To qualify the booking may only be made a maximum of 8 days prior to the start of the period of use (16 days for the Caribbean)and is subject to availability.

A similar boat may be booked at any of the company’s bases in Greece, Turkey, Italy, Malta Croatia the South of France and the Caribbean.

A larger boat may be booked if required and the difference in the charter rate relating to the period of use is charged

VAT and TAXATION
During the charter period there is no VAT or other taxes to pay.

At the end of the contract depending on your business arrangements and country of residency you may be required to pay VAT on the residual value of the boat.

OWNERSHIP and TITLE
Under the standard contract terms the title to the boats are held by Kiriacoulis in trust for the true owner. There are clauses in this standard contract to protect the investment in the boat by the owner. Ownership is normally though the Greek company but it is possible to arrange ownership in France and Italy.

Owners are given an option to form their own Greek yacht ownership company and to transfer the title of their yacht into this. The shares of this company are held by the owner. The formation and administration of the company will be undertaken by Kiriacoulis with minimal involvement required from the owner.

There are obviously costs associated with this and many owners decide to use the standard contract as accepted before.

In either case the relationship and administration of the contract remains the same

GENERAL NOTES FOR OWNERSHIP SCHEMES 1 AND 2
Under the payment schemes 1 and 2 the unpaid portion of the capital will be funded by a loan from an external bank who will take a first charge on the boat. This loan is guaranteed by the company and is also personally guaranteed by the principal shareholders/directors of the company

A certificate from the bank will be issued to the owner when this loan has been fully repaid, this will be after 3 and 6 years on the 3.5 and 6.5 year schemes respectively

GENERAL NOTES FOR OWNERSHIP SCHEMES 3
For any boat which is 100% paid it is possible for you to hold title to the boat and have registration in your own country, however it may still be more economic due to VAT and other taxation regulations for you to have Greek registration. This will depend to a large extent on your own business arrangement and residency

It may also be required to comply with the charter coding regulations relating to the country of registration

SPECIAL DEALS
We are able to give you prices for a specially designed contract to meet you own requirements

Please email for a personal quotation.