A new client called into our office to enquire about financing a second hand Fleming 78 motor yacht. The yacht was moored in Cannes, France and the borrower needed a loan of at least €2.5 million EUR in order to assist with the purchase. The client and his business were based offshore and this presented a unique challenge to a number of aspects.
The client had a successful business based in France. Being a UK expat with a UK passport allowed us to consider the loan via a number of UK based lenders. The lenders available for a yacht of this size (guide price €3.5 million EUR) are fairly limited to around half a dozen as the market for yacht finance lies mainly in larger private banks and caters to super yachts of a much larger size.
Problems to Solve
Finding a UK based lender who would be happy to lend to an expat based offshore, with all their income based offshore. The bank we approached had a requirement that the borrower had to own a property in the UK in order for them to properly consider the loan. Fortunately for the client this criteria was met and allowed the lender to make the following offer to assist with the purchase of this beautiful motor yacht.
Our lender offered the following lending terms in respect of the Fleming 78.
60% Loan to Value
5 year term
Interest Only / Part Amortized