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Old 28-09-2016, 10:49   #1
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Financing Yacht Purchase

Hi All

I'm based in London and am moving to the BVI in January for work for at very least 3 years. Rather than pay a landlord over there, I'd much prefer to grab a yacht ASAP and live aboard (the yacht I intend to eventually cruise on).

I've just bought a house here which I intend to rent out in case I ever come back but that has wiped out my savings. So I have no savings but a very well paid job. The yacht I'm looking to buy would cost about 3/4 of my yearly salary.

There's a place here in London that would ordinarily finance me but as soon as they heard about my move (which will be at the beginning of the repayment term) they said no.

Have I alternative options? are there any international finance firms where moving abroad wouldn't be an issue? Or any finance firms in the BVI that would help? Or maybe use a BVI bank??

I don't want to buy a charter for a couple of reasons!

Thanks
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Old 28-09-2016, 11:27   #2
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Re: Financing Yacht Purchase

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Originally Posted by King-stew View Post
Hi All

I'm based in London and am moving to the BVI in January for work for at very least 3 years. Rather than pay a landlord over there, I'd much prefer to grab a yacht ASAP and live aboard (the yacht I intend to eventually cruise on).

I've just bought a house here which I intend to rent out in case I ever come back but that has wiped out my savings. So I have no savings but a very well paid job. The yacht I'm looking to buy would cost about 3/4 of my yearly salary.

There's a place here in London that would ordinarily finance me but as soon as they heard about my move (which will be at the beginning of the repayment term) they said no.

Have I alternative options? are there any international finance firms where moving abroad wouldn't be an issue? Or any finance firms in the BVI that would help? Or maybe use a BVI bank??

I don't want to buy a charter for a couple of reasons!

Thanks
Getting financing in the BVI's is difficult if your not a "belonger" I looked into it a few years ago. I was interested in purchasing a charter cat to start a buisiness with but there were just too many buearocratic obstacles to get through!
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Old 28-09-2016, 11:49   #3
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Re: Financing Yacht Purchase

Talk to someone locally who knows the market. We worked with Clive Allen at BVI Yacht Sales when we bought our boat - Home - BVI Yacht Sales

Cheers, RickG
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Old 28-09-2016, 13:32   #4
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Re: Financing Yacht Purchase

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Talk to someone locally who knows the market. We worked with Clive Allen at BVI Yacht Sales when we bought our boat - Home - BVI Yacht Sales

Cheers, RickG
Clive is a good guy. He was the one who initially warned me how hard it was for a "foreigner" to finance a boat in the BVI.
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Old 03-10-2016, 03:46   #5
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Re: Financing Yacht Purchase

thanks, I'll shoot him an email.

That is a bit worrying as I was really hoping to pick up something early next year out there with a 3-4 year loan!
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Old 03-10-2016, 04:06   #6
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Re: Financing Yacht Purchase

I don't know if it's relevant to you but a few different folks I've met have been able to finance a yacht with a traditional home loan by indicating the yacht is their primary residence.
They did not inform the loaner that they were going to sail it to the tropics, but didn't have an issue with it in the long run.
The biggest obstacle they, and you will find, is insurance in the BVI during hurricane season. Most ins companies define hurricane season as may 1 to nov 1
Biggest prob my friends have had was the ins company telling them they had to get the yacht out of the zone for those months.
Otherwise, yachts typically have to pay double the price on ins for those months to stay in the zone, but that's paid off yachts..
Not one to issue advice much, but you might consider just buying a more affordable yacht.
I can tell you from 15 years cruising the virgins, the experience is the same on a 30 ft classic plastic as it is on a larger yacht, just more affordable to run, maintain, haul and outfit.
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Old 03-10-2016, 04:32   #7
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pirate Re: Financing Yacht Purchase

If you've a house in London which is a high rental income area why do you not approach your bank for a loan with your house as equity.. consult a rental management agency as to prospective income and lay out a repayment plan to present the manager.
You'll get better rates of interest for a start and in my experience banks are much more flexible than finance companies.
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Old 03-10-2016, 06:39   #8
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Re: Financing Yacht Purchase

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I can tell you from 15 years cruising the virgins, the experience is the same on a 30 ft classic plastic as it is on a larger yacht, just more affordable to run, maintain, haul and outfit.
Thanks for the advice. I'm preparing myself mentally to have a battle to live on my yacht in the BVI in relation to insurance. I'm going to start looking into it now.

I'd normally be fine to live on a 30ft but I really wanted to buy the yacht I eventually want to circumnavigate in so I figured it was best just to get that right from the start and get to know it inside and out!

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If you've a house in London which is a high rental income area why do you not approach your bank for a loan with your house as equity.. consult a rental management agency as to prospective income and lay out a repayment plan to present the manager.
You'll get better rates of interest for a start and in my experience banks are much more flexible than finance companies.
Sorry I could have been more clear here. I have just bought an apartment in Dublin (the London housing market is terrifyingly expensive!). Because I've just bought it (with a mortgage) - I really have no equity in it at the moment as I haven't been paying it back for long! the rental income should still be decent on it but I suspect it's too soon for that plan which would be a lot more simple!
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Old 03-10-2016, 07:00   #9
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pirate Re: Financing Yacht Purchase

Have you checked out a lease and buy option..??

https://www.sgb-finance.com/financing/boat-leasing.aspx

https://www.cgi-finance.co.uk/
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Old 03-10-2016, 07:04   #10
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Re: Financing Yacht Purchase

If your house is fully paid up, you can borrow money against the house.

If your house is not fully paid up, I would not lend any money to you, unless I were a pirate banker.

You can try to find a desperate owner in BVI and buy the boat paying monthly. The boat becomes your own on payment of the last monthly.

I think what you want is doable. Just is it reasonable?

b.
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Old 03-10-2016, 07:04   #11
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Re: Financing Yacht Purchase

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Thanks, I'll have a look into that! do you know to what extent you can renovate or relocate on the boat with these options?
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Old 03-10-2016, 09:04   #12
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Re: Financing Yacht Purchase

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If your house is fully paid up, you can borrow money against the house.

If your house is not fully paid up, I would not lend any money to you, unless I were a pirate banker.

You can try to find a desperate owner in BVI and buy the boat paying monthly. The boat becomes your own on payment of the last monthly.

I think what you want is doable. Just is it reasonable?

b.
Conversely, I think it's reasonable - I just need to figure out if it's doable!

The house isn't fully paid up but is paying for itself (and then some) as it was an investment property. I'm renting at the moment seperately so that rent could reasonably be servicing a marine mortgage. It makes more financial sense from my point of view anyway but whether a lender sees it that way is another matter!
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Old 03-10-2016, 10:39   #13
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Re: Financing Yacht Purchase

No.. however if the purchase is overseas (bvi) and your an EU property owner I cannot see a problem as long as your suitably insured.
But I'm no expert
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Old 03-10-2016, 10:49   #14
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Re: Financing Yacht Purchase

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Conversely, I think it's reasonable - I just need to figure out if it's doable!

The house isn't fully paid up but is paying for itself (and then some) as it was an investment property. I'm renting at the moment seperately so that rent could reasonably be servicing a marine mortgage. It makes more financial sense from my point of view anyway but whether a lender sees it that way is another matter!
The challenge is, I think, that many lenders will employ smart people who can see thru the illusion.

What you want is a greedy lender with stupid clerks. Such lenders too exist, just their rates are not as low as at banks and institutions that have investors and supervisors breathing down their necks.

If your cash flow is strong enough, you will get your deal anyways, no worries. Your plan is lenders gain, not yours. Keep on looking.

b.
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Old 03-10-2016, 10:56   #15
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Re: Financing Yacht Purchase

How about a loan from your employer .... he knows where to find you
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