Boat Lease-Purchase

[ylwjacket]

Has anyone thought of, or heard of, a lease-purchase arrangement for a boat?

I have a couple that wants to assume the mortgage on my boat, or work a lease-purchase type arrrangement, where they would have so long to secure financing.

I am having my attorney look into it. I am aware of most, if not all, of the potential problems with this arrangement, so no need to recite all of the reasons why it's a bad idea.

I was just wondering if anyone has heard of it being done.

Thanks.

 

[StressAweigh]

you should contact your lender to see if they can asume you loan I have seen it done That way you are out of it

 

[Henry Boyd]

Your existing mortgage is the key. It is doubtful you can do much of anything without the mortgage holder's prior knowledge and approval.

There are a number of issues you have to deal with. The first being that if your attorney is not a practicing admiralty lawyer, you/he should get one ASAP.

Debt (mortgages and leases) in a maritime setting is a specialized application of the law. A vessel charter (the proper term for a lease involving a boat) is also a highly formalized document with a number of arcane language terms that have specific meaning and import to the document

Coming from the international transportation equipment leasing industry, I can tell you that leasing a transportation asset is not for the faint of heart. The big issue is the fact that the asset can be easily moved. Even a 450 DB can be put on a truck and be out of the country before you notice the second lease payment is late. Unless you are planning to turn the boat over to a reputable charter management company, I would suggest forgoing the lease/purchase arrangment.

Henry

 

[ylwjacket]

I have sent a letter requesting that the Bank consider letting the buyers assume the mortgage, but I haven't back yet.

This is a back-up plan, that may or may not have legs.

Thanks for the input.

 

[Dancin Dave]

I doubt any assumptions of a mortgage. They either will be qualified for a loan or they wont. And if there not, they would not be a good risk anyway.