Hire Purchase Agreement Advice.

Biggles · 05 August 2006, 18:10

How do you find out if a second hand boat has outstanding finance on it ?

Poly · 05 August 2006, 23:36

As I understand it if the finance is greater that 25k it will be secured via a marine mortgage, which is similar to car HP finance in that it is secured on the boat, and in the event of default the lender can reclaim the boat. if the original loan was for less than 25k it will be unsecured and even if the boat is sold to you with outstanding finance the problem is not yours.

if there is a marine mortage then there will be an entry on the SSR (Part 1- i think but just had 5th large whisky and vision is unclear never mind memory!).

TJ101 · 06 August 2006, 06:20

Quote:

Originally Posted by Polwart

if there is a marine mortage then there will be an entry on the SSR (Part 1- i think but just had 5th large whisky and vision is unclear never mind memory!).

A marine mortage can not be reg on the small ship registar !,
The SSR system is the simalar to a vehicle V5 doc, does not prove owenership etc,,

If a mortage is to be held against a vessel, she would have to be Bristish Registered

rbw156 · 06 August 2006, 08:10

It is very difficult to check this with certainty for a RIB. As far as I'm aware there is no equivalent to a HPI check for a car.

I would ask to see the original purchase invoice (which should be available to prove the VAT status of the RIB). However, be careful if your vendor purchased the RIB used. I would also draft a short contract that listed the descriptionof the RIB, inventory, serial numbers, etc and include a warranty that they have legal title to pass and that there is no outstanding finance or claim on the RIB. I hope this helps.

PS I'm happy to be eat my hat if a lawyer can provide a more informed view!

Poly · 06 August 2006, 10:13

Quote:

Originally Posted by TJ101

A marine mortage can not be reg on the small ship registar !,
The SSR system is the simalar to a vehicle V5 doc, does not prove owenership etc,,

If a mortage is to be held against a vessel, she would have to be Bristish Registered

Considering my sobriety I was remarkably close to the correct information! But you are correct TJ101 the SSR is not for mortgages. If there is a mortgage secured on the boat it will have a part 1 UK registration with the MCA.

I think the RYA can supply Bill of Sale templates to members which presumably cover this issue...