The example costs set out below are based on average asking prices of an Elegance Dynasty 95 (layout above) based in EU waters at £1.6M VAT paid. 2001 model with substantial refit/refurb in 2009/2010.
Charter rates are based on 2011 Mallorca season May through to October
Offset: ten weeks charter on WMT at £30,000 per week after commissions = £300,000. Fuel charged to client at cost
Stage 3 costs: £12,000 per quarter share per annum, payable monthly. Unused monies put to routine winter refit &refurb
Stage 2 costs: Mooring £75K pa + Captain, Ist Officer, Deckhand/Engineer, Stewardess = £240,000 pa; £60,000 pa per Share
"I chartered my 86' Versilcraft out of Palma for eight weeks in the first season and eleven weeks in my second season. At £26000 per week after commissions my use the rest of the year was effectively 'free'.... "
How costs are calculated.......
There are three stages in calculating the quarter-share valuation and the annual operating budget. Stage one is the basic purchase:
- Acquisition cost including, flights, surveys, brokerage fees
- Refit and refurbishment to return to A1 condition
- Repositioning expenses if required
- SPV incorporation fees
The second stage is indentifying fixed costs:
- Mooring/berthing fees per annum
- Crew costs on standby and full charter basis
- Insurances, annual inspection/classification fees.
- Management, audit and legal fees
The third stage is an annual contingency budget:
- Equipment failure and fair wear & tear replacements