Superyachts: Finance

Our specialist finance team advises on the full range of issues concerning a financed yachting project, whether it concerns a newbuild (pre or post-delivery), second-hand purchase or the refinance of an existing facility.

Our network includes the main yacht lenders and mortgage brokers so, for private individuals looking for finance, we can give fast, targeted advice on how best to structure their proposal for the market. We can look at asset finance vs private banking options and the likely position of different lenders in terms of the suitability of the yacht as security for the loan, the scope of the security package, limitations on charter operations and preferences regarding insurance, management, flag and class. 

We act for private lenders offering vendor finance or looking to invest in yachting ventures, including sustainable projects. We also work alongside private client lawyers to help their finance team to review the maritime aspects of their client’s facility agreements and security packages. 

Private banks and asset lenders ask us to advise their borrowers, to ensure that the obligations involved are explained and understood and that there is a smooth transaction and drawdown process.  We also advise lenders on their standard terms, we put the loan and security documents pack together, deal with any registration requirements and advise on enforcement options on events of default.

In summary our experience includes:

• Superyacht financing and refinancing arrangements (vendor, yard and institutional)

• Marine security arrangements, including mortgages, assignments and pledges

• Lender’s requirements in terms of yacht size/type and operational arrangements

• Specialist fine-art finance

• Review of marine loan/security documents for private client lawyers/family officers

• Standard terms and conditions

• Registration /de-registration of mortgages

Recent examples include:

• Acting for the borrower under a vendor loan arrangement for the acquisition of an 80+ metre motor-yacht, including personal guarantees, mortgages, assignments and post- delivery arrangements for vendor’s use.

• Acting for a lender (a commercial bank) to draft their standard-form marine loan and security documents and security enforcement arrangements.

• Acting for a borrower financing the purchase of a series-model Sunseeker motor yacht, including advice on charter restrictions, maintenance obligations and insurance requirements. Negotiating and agreeing improved terms with the lender on these issues.

• Acting for a borrower in connection with the fine-art financing required for the restoration of a classic yacht.