Aircraft Finance
Purchase finance and equity release for private jets, turboprops and helicopters. 60–80% LTV, Cape Town Convention registered security, aircraft remains operational and available throughout the loan.
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No upfront fees · Business enquiries only · Min. £25,000
What is Aircraft Finance?
Private aircraft finance covers both the purchase of a new or pre-owned aircraft — turboprop, business jet or helicopter — and equity release against an aircraft already owned outright. Specialist aviation lenders and private banks advance 60–80% of independently appraised value, secured via a chattel mortgage registered under the Cape Town Convention and the relevant aviation authority register. Unlike most luxury asset lending, aviation finance involves a credit and financial assessment of the borrower alongside the asset. The aircraft remains operational and available for the owner's use throughout the loan period.
- Advance of 60–80% of independently appraised aircraft value
- Aircraft remains operational and available for use throughout the loan
- Cape Town Convention registration provides internationally recognised priority security
- Loan terms of 5–15 years for purchase finance; shorter structures for equity release
- Suitable for turboprops, business jets (all cabin sizes) and helicopters
- Credit and income assessment conducted (unlike most luxury asset categories)
- Minimum loan typically £500,000; standard business jet transactions from £1 million+
How Does Aircraft Finance Work?
Initial Enquiry
Provide aircraft details: type, make, model, serial number, year of manufacture, airframe total time, time since last overhaul (TTSOH), current registration and approximate market value. Loan amount, purpose and ownership structure are also required at this stage.
Independent Aviation Appraisal
The lender instructs an independent aviation appraiser using recognised valuation guides — Aircraft Bluebook, AVAC, AVPRO — to establish current market value. For business jets, this typically takes 1–2 weeks and involves a physical inspection of the aircraft's records and logs.
KYC and Credit Assessment
Unlike most luxury asset categories, aviation lenders conduct a full credit and financial assessment: income verification, financial statements, net worth, existing liabilities and business use rationale. The borrower's ability to sustain ongoing operating costs — crew, maintenance, insurance, hangar — is a key underwriting consideration.
Cape Town Convention Search & Registration
The lender's aviation solicitors search the International Registry of Mobile Assets (IDERA) to confirm the aircraft is free of all prior interests and liens. Once the loan completes, the lender's chattel mortgage is registered on the International Registry — providing internationally enforceable priority security across all Cape Town Convention signatory states.
Aviation Legal Documentation
A chattel mortgage is documented and registered on the IDERA register. The aircraft's entry with the CAA (or relevant authority) is noted to reflect the lender's interest. Aviation legal specialists manage this process on both sides.
Insurance & Drawdown
The borrower arranges comprehensive aviation insurance — hull all-risks, third-party liability, war risk — with the lender noted as additional insured and loss payee. On confirmation of insurance, funds are released and the aircraft is delivered or remains in operational service.
How is Aircraft Finance Secured?
The lender secures the loan via a chattel mortgage — a registered charge over the aircraft — registered on the International Registry of Mobile Assets under the Cape Town Convention (implemented in the UK by the International Interests in Mobile Equipment Regulations 2015). This provides an internationally recognised and prioritised security interest that follows the aircraft across jurisdictions. The aircraft remains in the borrower's possession and available for operation, subject to maintenance obligations, insurance requirements and lender notification conditions. In the event of default, the lender can exercise repossession rights under the Cape Town Convention framework.
Is Aircraft Finance a Good Idea?
Advantages
- Retain full operational availability and use of the aircraft throughout the loan
- Longer terms (up to 15 years) distribute cost over the aircraft's useful working life
- Business-purpose aircraft attract capital allowances and potentially VAT recovery
- Management company arrangements allow charter income to offset running costs
- Financing preserves cash and capital for higher-return business investments
Considerations
- Aircraft are depreciating assets — value erosion reduces equity over time
- Running costs are very high: crew, maintenance, AOC requirements, hangar, insurance, fuel
- More rigorous borrower assessment than art or watch lending — credit matters
- Regulatory and legal complexity requires specialist aviation advisers
- UK lenders predominantly require a legitimate business use rationale
How to Secure Aircraft Finance
Confirm Business Use
Most UK aviation lenders require the aircraft to be used for legitimate business purposes. Establish the business rationale clearly. A management company arrangement (Gama Aviation, Titan, Luxaviation) can facilitate charter use alongside private access and may strengthen the business case.
Compile Aircraft Documents
Gather the aircraft logbooks, maintenance records, Airworthiness Review Certificate (ARC), Certificate of Registration and any existing pre-purchase survey reports or appraisals.
Assess Ownership Structure
Consider whether personal ownership, a UK limited company or an aviation-specific SPV is most appropriate for tax, liability and privacy purposes. Aviation lawyers can advise on the implications of each structure.
Submit an Enquiry
We review the aircraft type, borrower profile and transaction structure and identify the most suitable lenders from our panel. Indicative terms are typically available within 48–72 hours.
Appraisal & Due Diligence
The lender appoints an aviation appraiser and commences full legal due diligence including an IDERA search. This stage typically takes 4–8 weeks for a business jet transaction.
Drawdown
Once the chattel mortgage is registered on the International Registry, insurance confirmed and all conditions satisfied, funds are released. Typical transaction timeline is 6–12 weeks.
How Much Can I Borrow?
Aircraft finance is sized at 60–80% of independently appraised value using recognised aviation valuation guides. Newer aircraft from major manufacturers with lower airframe hours and strong market demand attract the highest LTVs. The maximum available loan depends on aircraft type, age, total airframe hours, borrower creditworthiness and lender appetite.
- New aircraft from major manufacturers (Gulfstream, Bombardier Global, Dassault Falcon): up to 80% LTV
- Well-maintained jets under 10 years old with low hours: 70–75% LTV
- Aircraft aged 10–20 years: 60–70% LTV
- Turboprops (Pilatus PC-12, Beechcraft King Air series): 65–75% LTV
- Helicopters: 60–70% LTV depending on type, hours and maintenance status
- Older or high-hours aircraft: assessed individually; lower LTV typically applicable
- Minimum loan: £500,000; typical structured jet transactions from £1 million to £50 million+
What Are the Costs?
How Quickly Can I Get a Loan?
Aircraft finance is among the more time-consuming luxury asset categories due to the combination of credit assessment, independent appraisal, aviation legal due diligence and Cape Town Convention registration. Even straightforward transactions typically take 6–10 weeks. Complex structures — SPVs, cross-border ownership, multi-engine jets with high-hours records — typically take 10–16 weeks. We engage all parties simultaneously to minimise the timeline. If speed is critical, a temporary bridge against property or art can be arranged while aviation documentation completes.
Eligibility Criteria & How to Apply
- Aircraft registered with CAA, FAA or equivalent recognised aviation authority
- Current Airworthiness Review Certificate (ARC) in force
- Aircraft in airworthy, maintained condition with complete and up-to-date logbooks
- Legitimate business use rationale (most UK lenders require commercial purpose)
- KYC/AML documentation for all beneficial owners
- Creditworthiness assessment: income evidence, financial statements, net worth confirmed
- Aviation insurance committed at required levels (hull all-risks, liability, war risk)
- Legal title confirmed free from prior liens via IDERA search
- Suitable for UK limited companies, LLPs, aviation SPVs and private individuals with demonstrable business purpose
9 Example Uses of Aircraft Finance
Corporate Jet Acquisition
A mid-market business finances the acquisition of a Bombardier Challenger 350, using the aircraft for client and management travel while offsetting running costs against the business.
Equity Release
A business owner refinances an unencumbered Pilatus PC-12 to release capital for a commercial property acquisition, retaining full aircraft access.
Charter Operation Fleet Addition
An AOC holder finances an additional aircraft for the charter fleet, using projected charter revenue and contracted bookings as part of the serviceability case.
Aircraft Upgrade
A turboprop owner upgrades to a light jet — the new aircraft is financed and the existing turboprop sold, with proceeds covering the equity contribution.
New Build Delivery Finance
A buyer with a factory order for a Gulfstream G700 arranges delivery finance 12 months ahead of delivery, with long-term financing structured to commence from completion.
Sale and Leaseback
A company sells its existing aircraft to a specialist leasing company and immediately leases it back — releasing substantial capital while retaining full operational access.
SPV Structure
A UHNWI purchases a Citation CJ4 through a Guernsey SPV, with the SPV financed against the aircraft value, providing privacy, limited liability and a clean corporate structure.
Tax Planning
A UK company structures aircraft ownership through the appropriate corporate vehicle to maximise first-year allowances and recover input VAT on the purchase.
Bridge Finance
A buyer requires an aircraft at short notice before long-term aviation finance can complete. A short-term bridge against investment property secures the aircraft while IDERA documentation completes.
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