Finance solutions
Hire Purchase
Hire Purchase is a “tripartite” agreement where Samera Sky arranges for a lender to buy the aircraft on your behalf. You then “hire” the aircraft from the lender for a fixed period. At the end of the term, you pay a small “Option to Purchase” fee, and the legal title transfers to you.
How it works
01
The Deposit
You pay an initial deposit, usually from 20% of the purchase price.
02
The Hire Period
You make fixed monthly or quarterly payments. Unlike a mortgage, where interest rates can fluctuate, Hire Purchase is almost always a fixed-rate, making your “Cost-per Hour” calculations perfectly predictable.
03
The Option to Purchase
Once the final instalment is made, a nominal fee is paid to the lender. The lender then issues a Bill of Sale in your name, and you become the 100% legal owner.
Why Choose Hire Purchase?
HP is the preferred “workhorse” for commercial operations and schools due to its administrative simplicity.
Simplified Budgeting
With fixed monthly repayments, there are no surprises. This is ideal for flight schools that need to calculate precise student rental rates.
Capital Allowances
For tax purposes you’re generally treated as the owner from the start of the agreement, so you may be able to claim capital allowances against your profits. Tax rules change and depend on your situation, so check with your accountant.
Balance Sheet Management
Because the lender technically holds the title until the end, it can sometimes be easier for new businesses (like a fresh flight school) to secure approval for an HP agreement rather than for a mortgage.
No Mortgage Register Fees
Since the lender owns the asset, there is no need to register a “charge” on the CAA Mortgage Register, saving you the registration and search fees associated with a Chattel Mortgage.
Take the
Next Step
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Talk with one of our industry experts to discuss.
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+44(0) 20 7100 8788