Buying a houseboat

With the cost of bricks and mortar going through the roof, it is no surprise that more and more people are taking to the water. As a result, houseboats are becoming increasingly popular with those buyers who are looking to get more for their money – not to mention a rather unique lifestyle.

However, purchasing a houseboat can be a rather difficult process, simply due to the fact that it is a rather unusual one. Read on to find out how to buy your very own floating home…

Types of boat

There is a wide range of boats available that are suitable for permanent residence, with the main division being between static boats and cruisers. Houseboats are usually static – purpose-built homes set on floating barges or specially designed platforms that require a residential mooring – but many other vessels, such as barges and narrowboats, are also suitable for full-time living.

Mooring

Never has the adage location, location, location been more apt than when buying a houseboat. This is simply because, not matter how great the boat may be, it is practically worthless if you don’t have anywhere to moor it.

Unless you are buying a boat that comes complete with a mooring, it is essential that you find a mooring first, as these are much harder to come by. In fact, many popular locations have waiting lists of up to three years – so make sure that you register your interest sooner rather than later.

Residential moorings are available for rent from British Waterways, a private landlord or the local council. The cost of renting a mooring varies greatly depending on region, location, facilities available and type and size of your boat. Fees are usually payable on a per metre basis, and can range from a few hundred pounds a year to several thousand.

Mooring on private land

It is possible to moor a houseboat on your own land, but you will need to obtain planning permission if you are changing the use from a cruising mooring to a residential mooring.

If the site is on a canal or waterway you will also need permission from British Waterways, while the Crown Estate grants consent if the mooring is on the coast.

Finance

You won’t be able to get a traditional mortgage in order to fund your houseboat purchase. This is simply because banks and building societies are reluctant to lend on anything that could literally sail away never to be seen again – especially if the mortgagee is in it!

As a result, you will either have to approach a specialist in marine finance, or raise a personal loan. Both of these options will have a far higher monthly repayment than a conventional mortgage, namely because the term of the loan is so much shorter. You will also be required to put down a 20 per cent deposit.

If your houseboat is sea-faring, then you may find that your only option is to put your existing property down as security – again, this is due to the increased flight risk.

Insurance

You must insure your houseboat with a Third Party policy to a minimum value of £1,000,000 by law. Fear not, however, as houseboat insurance is usually cheaper than car insurance. A range of specialist insurers provide this service, as well as a range of comprehensive policies.

If you wish to insure your contents too – an advisable move – be aware that you will only be able to insure them with the same provider who is covering the fabric of the boat.

Utilities

The majority of residential moorings today come complete with access to services such as gas and electricity. Many other facilities, however, are dependent on your particular mooring – some will even have a land-line telephone connection for example.

A few purpose-built marinas offer additional services ranging from an on-site laundry to a common room where residents are encouraged to socialise. As a result, these moorings are unlikely to come cheap.

Renting a houseboat

If you are planning on renting a houseboat, ensure that the lease comes with a residential mooring. Many moorings forbid houseboats to be rented out, so it’s imperative that the landlord has permission in order to let it to you, otherwise you could find yourself being evicted.

Boat Safety Certificates

Every houseboat must have a valid Boat Safety Certificate. In order to receive the Certificate, you must have your houseboat checked out by an examiner, and then send the endorsed pass to the relevant navigation authority, along with the completed licence application paperwork.

Once issued, each Certificate is valid for four years, and you will need to produce it in order to get insurance. The inspection process can be expensive for older boats. Visit www.boatsafetyscheme.com for more information.

Licences

All houseboats, even if they are based on a permanent residential mooring, need to have a British Waterways Boat Licence. However, if this is an unpowered mooring then the licence is likely to be very cheap

However, if you are after a slightly more nomadic way of life, you can apply for a Continuous Cruising Licence – requiring you to move on every two weeks. The cost of this is around £570, and you will be exempt from paying Council Tax, although this option is unlikely to be suitable if you need to commute to work.

Survey

As when buying a traditional property, it is essential that you have an independent survey carried out before you commit to buying a houseboat. The condition of the boat is likely to be reflected in the price so, if one seems unbelievably cheap, then it’s probably for a reason.

Surveys start from a couple of hundred pounds for a modern boat but, if you are buying an older model, then be prepared for it to be craned out of the water – raising the cost to around £1,000. However, if the results aren’t satisfactory then you are in a position to renegotiate the asking price.

Running costs

If you have a permanent residential mooring then you will be liable to pay Council Tax, but you will only have to pay VAT if your boat has a motor. In addition, monthly outgoings for basics such as gas and electricity will have to be budgeted for, along with rent for the mooring.

Extra costs include insurance, Boat Safety Certificates and a Boat Licence. Maintenance costs can be expensive too, especially if you have an older boat and lack the specialist skills needed to implement the repairs.

And finally…

Unlike houses, houseboats don’t have title deeds, so it is vital that you are vigilant in checking that you are buying off the actual owner – otherwise you stand to risk everything that you have invested.

It is always a good idea to rent a houseboat before you take the financial plunge and buy one, simply to ensure that this is a way of life that actually suits you. Despite rising prices and increasing popularity, you may find it harder to sell a houseboat compared to a conventional property – so make sure that you are in it for the long haul.

This is especially true if you are considering taking children or pets on board with you. As well as the obvious safety aspect to consider, not all members of your family may adjust easily to a life afloat.