Why Marina Berth Finance Is a Specialist Market
Buying a marina berth is not like buying a house or a car. Berths exist in a niche corner of the UK property and asset finance market that most mainstream lenders don't understand - and many won't touch at all. High-street banks routinely decline berth finance applications, not because the applicant is unsuitable, but because the asset doesn't fit their automated underwriting frameworks.
The specialist lenders who do finance berths - Together Money, Shawbrook Bank, United Trust Bank, Aldermore, Pegasus Marine Finance and Rankin Finance - each have different criteria, rate structures and appetite for different berth types. Understanding which lender suits your specific situation is half the battle.
This guide explains how berth finance works, what drives your rate, and how to navigate the application process successfully.
Types of Marina Berth Ownership in the UK
Before approaching any lender, you need to understand what you're actually buying - because berth "ownership" in the UK takes several distinct legal forms, and the form determines which lenders will consider you and at what cost.
Freehold Berth Ownership
Freehold berths are rare but exist at some marinas, typically smaller or older facilities where the berth plots were sold outright. A freehold berth gives you permanent ownership of the land or water space beneath the berth, making it the most financeable form of berth ownership. Most specialist lenders including Together Money, Shawbrook and Aldermore will accept freehold berths.
Long-Leasehold Berths
Long-leasehold berths (typically 99–999 year leases) are the most common form of permanent berth ownership at UK marinas. The leaseholder has an effective long-term right to use the berth, and the underlying marina operator or freeholder retains ultimate ownership. Long-leasehold berths with sufficient years remaining are accepted by most specialist lenders.
Right-to-Use Arrangements
Right-to-use berths give the holder the right to occupy a specific berth for a fixed period - often 25–50 years - without a formal leasehold interest. These are common at larger marina developments. Financing a right-to-use berth is harder: Together Money and Pegasus Marine Finance are the primary lenders in this space.
Annual Mooring Licences
Mooring licences are renewable annually or on short terms and cannot generally be financed as a capital asset. Finance in this context is limited to personal loans or short-term credit facilities.
How Much Can I Borrow for a Marina Berth?
Berth finance is assessed on loan-to-value (LTV), with most lenders offering between 65% and 75% of the assessed berth value. The valuation is typically provided by a specialist RICS surveyor with experience in marina assets.
| Berth Value | Max Loan (75% LTV) | Max Loan (70% LTV) | Max Loan (65% LTV) |
|---|---|---|---|
| £50,000 | £37,500 | £35,000 | £32,500 |
| £100,000 | £75,000 | £70,000 | £65,000 |
| £200,000 | £150,000 | £140,000 | £130,000 |
| £350,000 | £262,500 | £245,000 | £227,500 |
Worked Example: Purchasing a £180,000 Freehold Berth
Berth value: £180,000 (freehold, established marina, South Coast)
Applicant: Ltd company director, clean credit, trading 8 years
Loan required: £126,000 (70% LTV)
Lender selected: Shawbrook Bank at 7.2% APR
Term: 10 years
Monthly repayment: approx. £1,468
Total repayable: approx. £176,160
Arrangement fee: 1.5% (£1,890)
Notes: RICS valuation required (c.£800–£1,200). Solicitor costs for both lender and borrower. Completion in approximately 6 weeks.
The Application Process
Berth finance applications follow a broadly similar process regardless of lender:
Step 1 - Lender selection: A whole-market broker will identify the most appropriate lender based on berth type, loan size, LTV and applicant profile.
Step 2 - Decision in principle: Initial credit and affordability assessment without a valuation. Most lenders can issue a DIP within 24–48 hours.
Step 3 - Valuation: A specialist RICS surveyor inspects the berth and provides a formal valuation. Costs typically £800–£1,500.
Step 4 - Formal offer: Subject to satisfactory valuation and legal due diligence, the lender issues a formal mortgage or loan offer.
Step 5 - Legal completion: Solicitors on both sides complete the transaction. A berth purchase can complete within 4–8 weeks of application.
Tips for Getting Approved
The most common reasons berth finance applications are declined are: berth type not accepted by the lender (common with right-to-use and short leasehold), LTV too high, income evidence insufficient, or the marina is too small or obscure for the lender's appetite. Addressing these issues before application - with a specialist broker - dramatically improves approval rates.