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Motor boat latest Jan 25, 2018 13:49:38 GMT kermie, jjc, and 6 more like this

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Post by Deleted on Jan 25, 2018 13:49:38 GMT

Just in case anyone is interested in a Princess (note the n) 385, you can pick a 1988 model for £40k on the Hamble. Princess Yachts have been through an interesting history, little on the internet but have been restructured a lot, still the basic workmanship is fine and anyone who can afford to fuel the thing can certainly afford £40k-.

Looking at the details on the one in the southwest coming up as a loan it has only a few problems due to age, some cracked plastics that need replacing and some Osmosis (a feature of being built when osmosis was not understood and will only worsen with age, not a crisis but it isn't going to be bought with it present). I'd guess fixing both would cost £10k and I very much doubt a buyer will stump up for much of that but then maybe the owner is a better negotiator than me.

I suspect this is overvalued but I havn't seen it. It is out of water and storage costs. At a value of £30k the LTV jumps up to 70%+

Storage over the winter 6 months at Mylor, just as an example (a posh place) as I have no idea where it is, costs £127 per metre so I guess £1.8k, you might be able to smoke that down to £1.5k at a back yard place.

None of you will be surprised that I am gripping my punt pole very firmly on this one.

Last Edit: Jan 25, 2018 14:14:45 GMT by Deleted: spelling check

aj
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Motor boat latest Jan 25, 2018 14:53:36 GMT jjc likes this

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Post by aj on Jan 25, 2018 14:53:36 GMT

Jan 25, 2018 13:49:38 GMT @bobo said:

Storage over the winter 6 months at Mylor, just as an example (a posh place) as I have no idea where it is, costs £127 per metre so I guess £1.8k, you might be able to smoke that down to £1.5k at a back yard place.

The photos of the boat show it moored up at Mayflower Marina, just around the corner from Princess Yachts Headquarters. They do have a storage yard as well.

Although the valuation was made on hardstanding, the photos show it in the water. From the description "The boat is moored in the south west and will not be used for the duration of the loan." I assumed it would be floating about osmosing for the 6mth duration of the loan...

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Motor boat latest Jan 25, 2018 17:00:03 GMT ozboy, eascogo, and 1 more like this

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Post by Deleted on Jan 25, 2018 17:00:03 GMT

great info

For those who don't know a hull of a fibreglass yacht is made up of a inner fibre mat and resin emalgam which gives it its structure. On top of this (the process of production is actually the other way around but it is harder to imagine) is a simple resin coat called a gel coat which holds the colour and makes the whole thing smooth. Since there are two materials it is possible for water to penetrate between the coats and form a water bubble which spreads under stress, heat, cold etc. Once you get osmosis started being in the sea is not an issue, the structure/gel has a wet core and it spreads. You have to cut away the gel coat and re-apply then smooth/polish like filling a car. Like a car it just takes time and money. Unlike a car it has a lot of surface so it costs more money and time. To fix the osmosis you have to get out of the water and humans like to fix it in a shed, but for money... The 75-95 period was the main osmosis problem time but you still get it in just a few modern boats.

The other plastic failure is probably down to sun damage, while the South Coast is not as sunny as say the S of France, the amount of sun reflected up from the sea means that plastics do age badly. '86-'18 =32 years, not bad.

Hope all this helps

Last Edit: Jan 25, 2018 17:01:59 GMT by Deleted

mikes1531
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Motor boat latest Jan 25, 2018 17:18:38 GMT ozboy and adrian77 like this

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Post by mikes1531 on Jan 25, 2018 17:18:38 GMT

Jan 25, 2018 13:49:38 GMT @bobo said:

Storage over the winter 6 months at Mylor, just as an example (a posh place) as I have no idea where it is, costs £127 per metre so I guess £1.8k, you might be able to smoke that down to £1.5k at a back yard place.

@bobo: Thanks for all the good info.

With respect to the storage costs, who is paying those during the loan? When fundingsecure take possession of artwork or jewellery, they pay the storage costs, but do they take on responsibility for the storage of this boat during the loan period?

If they do, can someone remind me where the reimbursement of those expenses ranks if the security has to be sold because the borrower doesn't redeem it by repaying the loan? IIRC, investors' capital comes first, but I can't remember whether storage expenses would rank before or after investors' accrued interest.