The Principle – Chattel Mortgages
A Chattel Mortgage is a type of fixed charge taken over identifiable and move-able assets such as plant and machinery. A fixed rate and fixed period Loan agreement secured by a legal charge on specific equipment.
Global Asset Finance and Partners’ loan agreement is simple to understand and is typically used where a company is buying equipment which is not suitable for a Hire Purchase, Rental or a Lease agreement.
Examples might be where your company is buying equipment which qualifies for a reduced rate of VAT such as a biomass boiler for a residential care home or other residential building, or an intangible asset or bundle of assets.
You would select the equipment of your choice and Global Asset Finance and Partners would sign a loan agreement with your company. This would require your company to pay a fixed number of loan repayments over a fixed period of time. The interest charges are normally fixed throughout the agreement.
Global Asset Finance and Partners would pay the amount of the loan advance to either your company or its nominated supplier.
The Chattel Mortgage is a form of security that Global Asset Finance and Partners takes over the equipment you purchased. A mortgage is registered at Companies House informing any interested party that Global Asset Finance and Partners has security in the equipment.
1 to 5 Year Repayment Terms
This is the minimum and maximum terms in years that the finance agreement will run for.
The useful life and economic life are very important considerations.
1 to 10 Years Repayment Terms
This is the minimum and maximum terms in years that the finance agreement will run for. Long repayment terms require careful examination of the equipment or vehicle, possible technological obsolescence and anticipated usage.
Repayments throughout the agreement vary in line with your seasonal income.
Chattels are defined as any property other than freehold land.
Chattel mortgages are normally only available if the customer is a corporate body and is based in England and Wales. Scotland and Channel Islands do not recognise chattel mortgages except for ships and boats or aircraft.
Marine and Aircraft mortgages are recognised by statute and can be used throughout the UK and by non-corporate as well as corporate customers.
Types of Assets to be financed on a Chattel mortgage:
- Finance for executive & corporate jets
- Finance for fixed wing aircraft
- Finance for helicopters
- Private jet finance
- Light aircraft
- Mobile Homes
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