2nd Hand Boat With Marine Mortgage

[Algey]

Hi
I have not posted here on this forum section before so hello to all.
I am looking for advice regarding buying a 2nd hand boat that has a mortgage against it. What is the process for settling the mortgage, am I expected to do this direct with the finance house or does the seller do this with my money? Does this happen before I receive the boat?
I am aware that we will need to sign a sales contract & bill of sale upon completion but both the seller & myself are unsure how to sort out the mortgage.
Also am I right in thinking that if a boat has a marine mortgage then it will be part 1 registered?

Any advice would be greatfully excepted.

 

[capsco]

Request a settlement figure from finance company[You should do this]the owner will give you the agreement reference, then pay with 2 cheques, one to the Finance Co and the balance to the owner.

 

[Eygthene]

May I please ask an associated question? How can a potential purchaser find out if a boat being offered for sale does indeed have a marine mortgage against it?

 

[maxi77]

I understand a Marine Mortgage will be registered as a charge on the Part 1 registration.

 

[Caer Urfa]

If This is your first boat be VERY aware of what your doing.
'Do not Part with any money 'to the owner untill you have a settlement figure of the morgage FROM the morgage company, BUT,at the same time you need to have exchanged contracts with the owner saying the boat will be your property when the morgage is settled by you as he could back out AFTER you have paid his outstanding morgage.
Unless you are 100% sure of the sellar I would tread very carefully, if it costs you £100 for a solicitors letter it may be money well spent.

 

[wotayottie]

There is no guarantee that a boat without a registered mortgage is not subject to a loan, and indeed no way that you can be absolutely sure that a boat is not subject to a charge. Asking the loan companies doesnt work cos they cover their arses. So you need to follow the paperwork through with care but in the last analysis ensure that the guy you are buying from has enough other free assets for you to sue him if there is a boat title issue

Its up to him to prove to your satisfaction that the boat is his to sell and is free of a charge. Be particularly careful with a guy who admits to using a loan to buy a toy - a boat - because of what this says about his finances and his attitude towards money.

 

[Leighb]

[ QUOTE ]
I understand a Marine Mortgage will be registered as a charge on the Part 1 registration.

[/ QUOTE ]

This is true, but it can take some time, and a fee /forums/images/graemlins/frown.gif to find this out. More importantly this information is ONLY available for boats on Part I, SSR has no such information, so as always, Caveat Emptor !!.

 

[Rivers & creeks]

[ QUOTE ]
Be particularly careful with a guy who admits to using a loan to buy a toy - a boat - because of what this says about his finances and his attitude towards money.

[/ QUOTE ] WHAT???

 

[MoodySabre]

HPI run a scheme called Boatmark

Read all about it

 

[absit_omen]

[ QUOTE ]
Be particularly careful with a guy who admits to using a loan to buy a toy - a boat - because of what this says about his finances and his attitude towards money.

[/ QUOTE ]

Well, that's a relief!

You mean I can actually trust those second home owning, buy to let, Armarni suited guys driving around in flash Porkers, bling encrusted tottie in new convertible BMWs and yummie mummies gassing away on their hands free whilst double parking their Landcruisers outside local private kindergarten the as they are all fine, upstanding, solvent, debt free members of the Rotary club and Womens Institute.

 

[cliff]

[ QUOTE ]
Be particularly careful with a guy who admits to using a loan to buy a toy - a boat - because of what this says about his finances and his attitude towards money.

[/ QUOTE ]Wotaloadacrap. What actually does it say about "his finances and his attitude towards money"? I really would like to know as I and many others have marine mortgages.

What is the difference between taking a mortgage out on a house or a boat. Are you saying anyone with a mortgage is shifty and a poor risk?

Ooops - I forgot - to take out a marine mortgage or "loan" there are far more credit and financial checks due then if you were taking out a house mortgage.

Are you saying you never took out a mortgage or a loan for anything?
--------------------

Artificial Intelligence is no match for Natural Stupidity

 

[Gezzer]

[ QUOTE ]
I understand a Marine Mortgage will be registered as a charge on the Part 1 registration.

[/ QUOTE ]

Be careful here, when I bought my boat and had a marine mortgage I assumed that they would insist on a Part 1 Registration, the reply was at my discretion as they have a lower limit of I think £80k where they do not need it as part of the terms.

They keep all the original title documents though until you have settled the mortgage, same as a house really.

 

[Severnman]

Sadly I bought my boat with the help of a loan......just off to beat myself with lash of barbed wire!!

 

[Eygthene]

Thank you all for your replies to my associated question. It certainly pays to be aware of the situation and to satisfy oneself before buying.