Yacht Financing Explained: Marine Mortgages, Leases & Structures
Loan-to-values, tenors, jurisdiction of the mortgage, and when a corporate lease outperforms a personal loan.
Specialist marine lenders typically advance 50–65% loan-to-value on brokerage yachts and up to 70% on new builds, over 7–15 year tenors. Rates track a benchmark plus a margin sensitive to LTV, jurisdiction, and borrower profile.
The mortgage is registered against the vessel in its flag state — British, Maltese, Marshall Islands, and Cayman registries are the most lender-friendly. Get pre-approval before making offers; a financing-subject clause weakens negotiating position materially.
For chartered yachts, a French leasing structure or an Italian commercial lease can materially improve VAT and cash-flow economics. Model both routes with a marine tax specialist before committing to the finance structure.