If you are in the market to purchase a new aircraft, or you are looking to make a loan against an aircraft it is important that you understand the legal aspects of aircraft mortgages. Seeking professional assistance from expert aviation solicitors will help you to completely understand the processes that need to be undertaken during the process of purchasing an aircraft. There are a few stages to work through in order to ensure everything is above board with any transaction of this nature, so be aware of each stage that we’ll discuss here and wherever you feel you need assistance, lean on your aviation legal specialists for guidance.
The first step you should take is to make a search of the UK Register of Aircraft Mortgages. This should be conducted before anything else, as this will help you find crucial information on an aircraft. You’ll be able to immediately tell whether the aircraft is the subject of any registered mortgages. All searches are carried out upon request through the CAA and you will have to pay a fee to retrieve the information. The request can be made through form CA350 from the CAA website, and you can expect to see a return on your results within 24-hours of the request being made. The search will look into the registered owner of the aircraft, all mortgages entered on the UK Register of Aircraft Mortgages, the parties involved and all dates and times of entry.
It is important that you register an aircraft mortgage as soon as possible. This must be sent to the CAA, with copies of all documents relating to the aircraft mortgage. As soon as all printed and signed documentation is submitted to the CAA it can be entered on the UK Register of Aircraft Mortgages, and all concerned parties will be notified in writing about the process being completed.
There are four things that need to take place for an aircraft mortgage to be registered. The first is for the form CA1577 – Entry of Aircraft Mortgages to be completed and submitted. This form must be signed and sent physically to the CAA and not digitally submitted. This form includes the exact details provided on the mortgage deed, including company name, address and number for both mortgagee and mortgagor.
Second, a certified copy of the mortgage deed must be sent to the CAA. This can be sent as a scanned document, but must be accompanied with an email that explicitly states that the mortgage attached is a true copy. After this has been submitted you will need to pay the specified fee using form CA1577 – Entry of Aircraft Mortgages and then provide additional contact information. Additional information should be supplied for all parties involved in the transaction.
Once a mortgage has been completed, inform the CAA in order to update the register of aircraft mortgages. There are several processes to understand and work through when purchasing an aircraft mortgage, so you should never take a chance. Speak with expert aviation solicitors for advice and guidance throughout the entire process.