The Pre-Purchase Survey (sometimes called a Full Condition Survey) is the most comprehensive type of survey available and we strongly advise you order one when purchasing a used vessel.
Because our surveyors are also qualified and highly experienced marine engineers we're prepared to include a free Engine and Systems Survey with a Pre-purchase Survey at no extra cost.
We strongly recommend that a Sea Trial is conducted as part of your Pre-Purchase Survey. We believe it's an important part of evaluating a vessel; its engines, its systems, how it handles and its overall performance.
When you want to insure a boat, or renew your existing insurance policy, your insurance company will need an Insurance Survey in order to determine the condition and fair market value of the boat.
A Valuation Report frequently comes as a standard part of another type of survey; our Pre-Purchase Surveys, Insurance Surveys and Financial Surveys can all include a Valuation Report.
Financial Institutions often lend money against the security of a yacht or powerboat and when they do they need independent verification that the vessel is in reasonable enough condition to justify the amount of money being loaned.
“I just wanted to thank you for the brilliant job you did on my pre-purchase survey. Your patience, flexibility and accessibility were greatly appreciated. Your attention to detail and thoroughness surpassed every expectation I had. On a side note, even the insurance company made mention that this was the "most comprehensive survey we have ever seen". Thank you for making this part of the buying process less stressful.”
We understand that buying a yacht or powerboat is an ultimate dream. We also know that an element of stress is involved in such a large investment. We've put together this page with useful tips to help you navigate the process and make sure you’re purchasing a vessel that best suits you and your needs.
To start with, buying a boat is as easy as buying a car. No written contract is required and an offer to purchase for an agreed price, subject to any conditions, can be accepted by the seller and the deal clinched.
You wouldn’t buy a second hand car without checking it’s overall condition, it’s engine and electrical and fuel systems. With a boat it’s even more important you know the overall condition before you and your family and friends venture onto the high seas, which is why we highly recommend having a Pre-Purchase Survey carried out. A pre-purchase survey will alert you to anything that needs fixing and the relative price of the boat.
Second-hand boats can be viewed at marinas, boatyards or on the private premises of the seller. Tempting though it may be, do not make an impulsive offer for the boat. There are thousands of craft advertised in the boating media, so take time to look around. Do not offer the asking price unless you are satisfied that the boat is worth that amount. The seller will expect to be offered a lower price and may accept or reject the offer. Although not strictly necessary, it is usual for the buyer to place a deposit on the boat pending completion of the purchase. There is no minimum or recommended sum for such a deposit and the amount will depend on the value of the boat. We’d recommend that you don’t place a deposit until the terms of the contract have been agreed, preferably in writing. A purchase will usually be subject to terms and conditions including a satisfactory Pre-Purchase Survey, compliance with the Boat Safety Scheme (if applicable), and a Sea Trial. Do not rely on the fact that the boat already has a "valid" Boat Safety Certificate. If you read the back of the certificate it was only valid on the day it was issued. We'd advise that you know who will pay for any necessary lifting out for a Pre-Purchase survey to be carried out and the cost of the Pre-Purchase Survey itself - this is usually the responsibility of the buyer. The owner should carry insurance on the craft until the sale is completed. If the Pre-Purchase Survey reveals serious faults the offer to buy can be withdrawn or the purchase price re-negotiated. Alternatively, the seller may agree to have the necessary work carried out at his/her own expense. It is important to ascertain that the owner/seller has the legal right to sell the craft. This can be checked by seeing previous bills of sale or other documents indicating that the person has owned the boat for a number of years. If the boat is subject to a hire purchase agreement, it belongs to the finance company and they must give permission for the beneficial owner to sell it. Confirm the inventory (either from the sales particulars or by compiling your own list) of items of equipment and gear that will form part of the purchase. Have a demonstration and trial run in the boat before you finally decide to buy. You may discover that the engine performs badly or is too noisy or subject to excessive vibration. Finally, make sure you obtain a receipt or Bill of Sale for the boat.
Some small pleasure craft may be registered as British ships on the official register. They will have an Official Number carved into a beam or on a plate and any transfer of ownership should be recorded by completing special forms obtainable from the Registrar of Shipping at Cardiff. It is not unusual for the paperwork not to have been completed over the years and in such cases the registration will probably have lapsed. Registration can be renewed subject to proper documents relating to previous owners and sales being produced and registered with the appropriate fees being paid, but this can be a difficult and expensive procedure. A reputable broker or company should carry out the required formalities for a registered vessel on behalf of the new owner. If the boat is a registered vessel and you want to transfer the ownership, this should be a condition of the proposed purchase. A Bill of Sale on an official form will need to be completed and witnessed and submitted to the Registrar with the stipulated fee. Finance companies will often insist that a Marine Mortgage is registered and this can only be done if the vessel is officially registered. If the registration is up-to-date the Registrar will be able to confirm the legal ownership of the craft. If you fail to properly transfer the registered "title" it can lead to legal difficulties for you in the future, particularly if a marine mortgage exists on the register.
Smaller boats are frequently registered on the Small Ships Register (SSR) if they are to be used abroad and will display a number preceded by the letters "SSR". This does not provide evidence of title and a new certificate must be obtained by the new owner. Refer to the NABO Guidance Paper on Ship Registration for further details concerning the registration of boats. It can be a complicated and expensive process.
VAT is only payable if a boat is sold by a trader. Private sales do not attract VAT.
New boats will usually be subject to VAT and it is important to retain the VAT Receipt as evidence that the tax has been paid. This is vital if the boat is to be taken into another member state of the EU, and failure to show that VAT has been paid could result in another tax bill from the foreign authority.
If a second-hand boat is to be taken into another EU country it will be necessary to have evidence that VAT has been paid on the boat unless it was built before 31 December 1984. Customs and Excise will give advice in such cases. If you intend to export a new boat or base it in another country you should seek advice regarding how the VAT will be treated. (NABO Technical Rep has this information). It should be noted that new houseboats are Zero-rated.
It is not a legal requirement for a boat to be insured but we'd highly recommend that you take out insurance. The cost of boat insurance is ridiculously cheap - usually only about 1/2 % of the agreed value of the boat. Insurance can be either Comprehensive or Third Party Only. Many navigation authorities insist that Third Party cover is in force as a minimum, in order to meet the costs of any damage or salvage resulting from an accident. When buying a boat make sure that the vendor has it insured until the sale has been completed and your own insurance is in force.
Don’t forget to insure the boat before you take possession. You will almost certainly need a survey for this. The Pre-Purchase Survey can be given to the Insurance company and is accepted for this purpose.
Specialised finance houses advertise in the boating press and can offer hire-purchase terms to purchasers. Always contact a finance house in good time, as the money needs to be available when you reach completion. Alternatively, a broker or boatyard may be able to assist with finance as agents for a lender. An alternative to hire purchase is a loan from a bank or building society. Larger loans may be secured by a charge over the borrower's house or other property or by means of a marine mortgage or a simpler form of unregistered mortgage on the boat.
If you haven’t sailed or driven a powerboat before do get some training before you take it and see if you can test run the boat you are purchasing. It’s essential you know the “Rules of the Road” and have adequate safety equipment. The RYA has a wide range of training course if needed.
The Royal Yachting Association produce two very useful booklets on the subject of "Buying a Second-hand Yacht" and "Buying a New Yacht". The contact address is :
Royal Yachting Association, RYA House, Romsey Road, Eastleigh, Hants SO50 9YA, Tel 023 8062 7400