Loan with a view to buy, how does that work?

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Horse_13

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Hi all,

The title says the question really. If I were to Loan with a view to buy, how would this work? I understand it will be on a contract. I’m thinking of doing this loan for 3 months with a view to buy said horse if I am happy at the end of the contract. But I just wondered how the payments work? And what it involves. Would I still do a vetting as normal?

Thanks in advance
☺️
 
It's effectively a three month trial period. Price is agreed prior to the loan starting. And you pay the full amount for the horse on the day of purchase.

It's up to you if and when you have it vetted.
 
If I were the seller I would want it vetted before the loan starts, and I think I'd be putting something in the contract about who carries the can if it breaks in that period.

But like Amymay I see LWVTB as a trial - others see it as much more of a loan with the option to talk about purchase at a later date, and their views on vetting are likely to be different.
 
I have an agreement I used to use - if you message me I'll see if I can dig it out. Basically all the terms are the same as a loan - initial homecheck and then more on a regular basis, loanee to insure and fund all treatment, farriery etc (unless if you want to exclude by agreement any pre-existing conditions) and keep horse in good condition at the premises you have homechecked, horse is not to be sold on (important if it should be sold the police will act with this clause to fall back on according to Horsewatch) and the term. Then in addition you state the price that has been agreed if the loanee wishes to buy the horse at the end of the term, if not they have to return the horse to you. A vetting could be at any time during the loan period, since the loanee is not obliged to buy the horse they just have the oprion to. Hope this helps
 
It isn't uncommon to have a break clause so if the horse is fatally injured or suffers a loss of use type injury during the loan period the loanee is fully responsible for the cost.

These types of arrangements are not common because of the risk to the seller. If you are planning on being able to but this way OP you may need to re-think.
 
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