Will Marinas be going bust?

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EdWingfield

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My own marina is small and would appear to derive most of its income through berthing fees. They also sell a brand of small fishing dayboat and a little chandlery. I imagine sales of those boats and outboard motors will be very difficult in this economic climate.

In my region (NE) unemployment in the retail sector is sure to be increasing but other sectors appear to be holding up at the moment.

I'm wondering whether to pay my fees by credit card this year. It will give me the Section 75 peace of mind. On the other hand it will cost me an extra £108.

If a marina goes bust, what position are the yacht owners in?

Sorry to be such a misery guys.
 
If you buy a car and pay monthly you have to continue payments as you have the car.
Surly if you pay monthly for your berthing and the administrators try to kick you out then you would not have to continue with the monthly payments. ?
 
I think the credit card idea is a good one. It gives you peace of mind and also gives the marina the fees up front to secure their cash flow.
 
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If it is run by a limited company you can get their Balance Sheet from Companies House for £1. My marina has a very strong BS so I'm not worrying.

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Asset rich and cash poor can still push you over the edge. There are a few other measures you need to look at, the full accounts can help but of course they are only published onnce a year and are 6 months out of date, plenty of time for things to go tits up.
 
I always understood the credit card protection only applied to buying something, didn't think paying for services was covered. Are you sure renting a berth would be covered?
 
Make sure you use a Cashback card. As the Tesco ad says 'Every Little helps'. With Marina fees it should be more than a little.
 
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If you buy a car and pay monthly you have to continue payments as you have the car.
Surly if you pay monthly for your berthing and the administrators try to kick you out then you would not have to continue with the monthly payments. ?

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You're misunderstanding the role of an administrator. his job is to keep the company running , try to restructure it and sell it as an ongoing business. so the one thing he wont want to do in most circs is to lose his customers. Ok if he could sell the site for (say) a fish farm, he might like to get rid of you but he cant do so if you have a contract. the business under an administrator is still the same business it was previously with still the same contracts etc.

so most likely you still have your mooring and still have the obligation to pay for it.

if he cant save the business and its put into liquidation then everything changes. the old business no longer exists. you have no mooring rights but depending on the wording of your contract (ie whether it is a 12 mopnth contract paid in instalments or a monthly contract)you could still have to pay the rest of your contract

this is my understanding of the rules of the game but I'm not a lawyer and it all doea depend on your contract terms.
 
I am not a lawyer either but, in the case of paying by installment for a 12 month agreement, surely if the company goes bust then patently it is no longer offering the service that is stipulated in the contract and therefore all bets are off on both sides?
At which point one may choose to continue to make monthly payments in return for new monthly berthing, at the same marina ? It hinges on whether both sides of the contract are still valid...but I am the man on the Clapham omnibus and not a legal eagle.
 
Right up to a point. The betting is that a marina will be continuing in the same line of business whoever owns it. A complete change of use decanting you and all the others into the drink is always possible but hardly likely, and not in the short term.

So if it goes into administration and even out of business under that trade name, a new owner is likely to continue to want the cash flow from umpteen boats etc.

Ironically, the greater risk is that you undertake a short term contract, the yard changes hands and MDL or some such lovely new crocodile owner sweeps in, you find yourself with a 50% upcharge thereafter, whilst other boats are permitted to see out their contracts for the whole year at the earlier rate. On the balance of risks, more likely don't you think?

Therefore I would not incur significant on-charges for some potential protection against insolvency.

PWG
 
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