Yacht & Superyacht Finance
Purchase finance and equity release for sailing yachts, motor yachts and superyachts. Marine mortgage security, SPV structures, and retain use of the vessel throughout.
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What is Yacht & Superyacht Finance?
Yacht and superyacht finance covers two distinct transactions: purchase finance — funding the acquisition of a new or existing vessel — and equity release, where a borrower raises capital against a yacht already owned outright. Specialist marine lenders advance 50–70% of independently surveyed vessel value, secured via a formal marine mortgage registered in the vessel's flag state. Unlike most luxury asset categories, the borrower typically retains possession and use of the vessel throughout the loan period. Larger superyacht transactions are almost always structured through an SPV (Special Purpose Vehicle) for privacy, liability limitation and potential VAT efficiency.
- Purchase finance and equity release both available
- LTV of 50–70% of independently surveyed vessel value
- Borrower retains use and possession of the vessel during the loan
- Marine mortgage registered over the vessel as security
- Loan terms of 5–20 years for purchase finance; 12–36 months for equity release
- SPV and company structures standard for larger superyacht transactions
- Minimum loan from £100,000; superyacht specialists from €1–2 million
How Does Yacht & Superyacht Finance Work?
Initial Enquiry
Provide details of the vessel: type, length overall, year of build, flag state, current market value or purchase price, and the loan amount required. We identify the most appropriate marine lenders and provide indicative terms within 24–48 hours.
Independent Marine Survey
The lender appoints a qualified independent marine surveyor (RINA, Lloyd's Register, Bureau Veritas or equivalent classification society) to assess the vessel's condition, structural integrity, equipment and market value.
Lender Due Diligence
Full KYC/AML checks on the borrower and all beneficial owners. For superyacht transactions, the lender will review the proposed ownership structure, comprehensive marine insurance arrangements, flag state registration and any charter income history.
Ownership Structure
For vessels above approximately £2–3 million, we work with specialist maritime lawyers to determine whether personal ownership or an SPV structure (Isle of Man, Cayman Islands, Malta) is most appropriate, considering VAT, liability and confidentiality.
Marine Mortgage Documentation
The lender's maritime solicitors draft and register a formal marine mortgage over the vessel in the relevant flag state register — the maritime equivalent of a Land Registry charge. Both parties' legal teams review and execute the documentation.
Drawdown
Loan funds are released to the seller's account (purchase) or directly to you (equity release). The vessel is delivered to you or remains in your use under agreed insurance and maintenance obligations.
How is Yacht & Superyacht Finance Secured?
The lender secures the loan via a formal marine mortgage — a registered security interest over the vessel, analogous to a Land Registry charge on property. The mortgage is registered in the vessel's flag state register (UK Part I Ship Register, Cayman Islands Shipping Registry, Isle of Man Ship Registry or equivalent). The borrower retains possession and use of the vessel. In the event of default, the lender can arrest the vessel and apply for its court-ordered sale. You must maintain the vessel in good condition and maintain comprehensive marine insurance throughout the loan term.
Is Yacht & Superyacht Finance a Good Idea?
Advantages
- Retain full use and enjoyment of the vessel throughout the entire loan period
- Longer terms available — up to 20 years — providing manageable monthly payments
- Charter income from the vessel can service interest and offset ownership costs
- SPV structures provide confidentiality, limited liability and potential VAT efficiencies
- Purchase finance enables acquisition of a vessel that would otherwise require full cash
Considerations
- Yachts are depreciating assets — values fall with age and use, reducing equity over time
- Running costs are very substantial: crew, maintenance, insurance, berthing, fuel
- Marine valuations are less transparent than property — broker opinions can vary considerably
- Marine lenders assess borrower creditworthiness more closely than in art or watch lending
- SPV and VAT structuring requires specialist maritime legal and tax advice — additional cost and complexity
How to Secure Yacht & Superyacht Finance
Define Your Requirements
Establish whether you are purchasing a vessel or refinancing an existing one. Identify the vessel details, required loan amount and preferred term.
Assemble Vessel Documentation
For an existing vessel: current survey report, flag state registration certificate, marine insurance schedule and charter income history if applicable. For a purchase: the purchase agreement, builder specification or broker listing.
Consider Ownership Structure
Determine whether personal, corporate or SPV ownership is most appropriate. Specialist maritime lawyers can advise on VAT, liability and privacy implications. For vessels above £2–3 million, SPV ownership is strongly worth considering.
Submit an Enquiry
We will identify the most appropriate marine lenders from our specialist panel and provide indicative terms within 24–48 hours.
Survey & Legal Due Diligence
The lender appoints a marine surveyor and their solicitors begin title review. For a superyacht, this stage typically takes 4–8 weeks.
Drawdown
Once the marine mortgage is registered, insurance confirmed and all conditions satisfied, funds are released. A full superyacht purchase transaction typically completes in 6–12 weeks from enquiry.
How Much Can I Borrow?
Marine lending is sized against the vessel's independently surveyed market value. LTVs typically range from 50–70% for European residents on modern vessels from recognised shipyards. Older vessels, unusual types and non-European borrowers attract lower LTVs. The maximum available loan depends on the lender, vessel type and the borrower's broader financial profile.
- Modern motor yacht (under 10 years, major shipyard): up to 70% LTV for EU/UK residents
- Superyacht (24m+, recognised builder — Lurssen, Feadship, Benetti, Heesen): 60–70% LTV
- Sailing yachts: 50–65% LTV; older or larger ocean-going vessels at the lower end
- Equity release on unencumbered vessel: same LTV guidelines apply
- Charter vessels with documented income: income may support higher debt serviceability
- Minimum loan: £100,000–£250,000 (general marine); €1–2 million+ for superyacht specialists
What Are the Costs?
How Quickly Can I Get a Loan?
Yacht finance timescales depend on transaction size and complexity. Simple equity release on a smaller vessel with a current survey can complete in 2–4 weeks. Full superyacht purchase finance — involving independent survey, SPV formation, maritime legal due diligence and flag state mortgage registration — typically takes 6–12 weeks. We manage the entire process with our panel of maritime solicitors and specialist surveyors to minimise delays.
Eligibility Criteria & How to Apply
- Vessel in good condition with a current independent marine survey
- Comprehensive marine insurance in place (hull & machinery; P&I where applicable)
- Vessel registered in an acceptable flag state
- KYC/AML documentation for all beneficial owners
- Business or personal ownership structures accepted; SPV standard for superyacht transactions
- Borrower creditworthiness is reviewed (unlike art and watch lending)
- UK and European borrowers standard; international borrowers considered at lower LTV
- New builds from recognised shipyards accepted; older or unusual vessels assessed individually
9 Example Uses of Yacht & Superyacht Finance
Superyacht Purchase
A UHNWI uses specialist marine finance to acquire a 35m motor yacht, providing 65% of the purchase price via a marine mortgage — retaining capital for other investments.
Equity Release
A yacht owner refinances an unencumbered vessel to release capital for a commercial property acquisition, retaining full use of the yacht.
Charter Operation Setup
A charter operator finances a new vessel through a marine lender, using projected and contracted charter income to service the debt over a 10-year term.
Fleet Upgrade
A boat owner finances the purchase of a significantly larger vessel, bridging between marine mortgage on the new yacht and proceeds from the sale of the existing one.
New Build Delivery Finance
A buyer with a significant deposit in an escrow account for a new build from a major yard arranges delivery finance 12 months ahead of delivery date.
Family Office Security Package
A family office uses a superyacht held in an Isle of Man SPV as part of a wider security package alongside investment property and art for a portfolio facility.
Inheritance Tax
An estate refinances a significant vessel to raise immediate IHT liquidity, avoiding a forced distressed sale of the yacht at an unfavourable point in the market.
VAT Structuring
A superyacht purchase is structured through a Cayman SPV with appropriate charter arrangements to manage European VAT exposure under specialist maritime legal advice.
Equity Release for Investment
A yacht owner releases equity from an existing unencumbered vessel to fund a time-sensitive investment opportunity, with loan repayment planned from investment returns.
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