Boat Surveys
Having
found your boat, and been approved in principle for your boat loan, the next stage will almost certainly be a
boat survey.
Unless your yacht is new, or less then one year old, then the lender will require you to obtain a boat survey and valuation which will be compulsory before funds will be released. The survey provides an up to date assessment of the condition of the vessel and the valuation will provide the current value for the lender.
Both the survey and valuation must be agreed by both the lender and the client ( i.e. you) Most marine mortgage providers will be able to provide a list of approved surveyors in your area and it is simply a question of contacting them and requesting a survey. This all sounds simple enough - so what could possibly go wrong!
Specifying Your Pre-Purchase Boat Survey
Purchasing and financing your yacht with a boat loan, should be an enjoyable and exciting experience given that you are probably buying for pleasure, rather than business. Yachts however, whether they are second hand, new, large or small, all have one thing in common. They are all expensive when something goes wrong. Many purchasers however become wrapped up in the euphoria of buying the new toy, and common sense and attention to detail go out of the window. This is particularly true when it comes to the survey and valuation, as many new owners have realised to their cost, shortly after taking delivery, simply because they failed to specify the exact details of the survey.
In addition to being precise in specifying what is, or is not to be covered, you will also need to understand who does what in the survey world. For example do you know the difference between a marine surveyor and a marine engineer. NO? - I suggest you find out fast, particularly if you are buying a sports cruiser - (see below for the answer!) . So what are my top tips to avoid the horrors of your new pride and joy becoming a black financial hole into which you pour money with increasing quantity and speed ?
Marine Survey Top Tips
- First, instruct your marine surveyor in writing and detail all aspects of the boat that you want checked. That way you have it in writing and ask for a letter confirming that all the listed items will be checked. Be specific - it will take time to compile the list but you will be grateful should anything go wrong later.
- Check if your marine surveyor will cover engines. If not then you need a marine engineer to inspect engines and machinery separately. Marine surveyors often do not include engines - a costly mistake which many new owners make. It will cost you extra, but worth doing - your marine mortgage provider will be impressed as well.
- Always instruct your marine surveyor or marine engineer direct. If your marine mortgages provider instructs them, then you will not be able to claim against them if problems arise later.
- Never accept a survey which has been carried out for the seller, either by the seller themselves or by the boat broker.
- Before instructing your surveyor, explain the type of boat you are buying and ask for relevant experience. Some specialise in certain types of boats and manufacturers.
- Ask for client references, and follow them up.
- Always check that your chosen surveyor has professional indemnity insurance and that it is up to date - ask to see copies.
- Make sure the survey includes a haul out and the bottom pressure washed at least 24 hours prior to the survey.
- Check that the surveyor is a member of the YBDSA so that work is done to their codes of practice
So now you understand all the types of marine mortgages available, have several outline quotes, and are preparing your marine survey specification, what else do you need to check - how about yacht registration!!
Marinablu International Ltd is an Introducer Appointed Representative of DeNovo Underwriting Agencies Ltd. DeNovo Underwriting Agencies Ltd is Authorised and Regulated by the Financial Services Authority (FSA)