Loan with a view to buy

annaellie

annaellie

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My boy is on full loan I bought him basically straight off the tracks and spent a lot of money on him he was in a complete state :( He was like a hat rack and had rain scald all over his back and quarters that was infected and had no top line what so ever. I moved him to a professional yard and spent a fair bit on a pro rider starting basics with him. He is also very well bred.
I had to put him on part loan which then turned to a full loan, the lady who has him on full loan as asked about buying him, I had no intention of selling but when I thought about it I am not in a position to have him back for roughly 3 years :( and my horse looks so happy that it would not be fair to take him back in a few years time and his interests come first :)
Anyway the lady who has him on loan as also spent lots of time getting him out to some shows and working on his muscle build up, she has also had the vet a fair few times as he is a typical TB :)
As this was not started as a loan with a view to buy there was no price stated and as I have said she has put a lot into him to. The question is how much would you take of the price for the horse to take into consideration what the lady who is loaning him has put into him
Sorry its a long rambling post I just have no Idea
Hope am allowed to post this as its not a how much post :)
 
Firstly a bird in the hand....secondly you don't say how old he is, whether he is clean limbed, how big he is, what he is like to ride, etc. The price could be anything ..you only have to look in H&H to see the range of horses and prices. He may be worth £1500 or £3500...
 
I suppose you would have to value as to when she first had him on full loan if she has put in all the work since then, so i would look at horses at the same stage of training as he was.
 
Thank you for your replies, the question is not how much just I have a value my horse should be sold after comparing his type age, experience and breeding lines that are currently for sale. Its how much should I take off that price if any for what work she has put into him :). I have never sold loan with a view to buy though I have bought that way but that was the intention from the start so the price was set from start
 
How much was he worth when she first took him on after the work you had put in? That's what you should ask for him. It's probably less than what he would be worth now :)
 
I suppose it all boils down to how much you are prepared to accept and how much she is prepared to pay. If you are reluctant to sell him then you don't want to be selling him to her for a giveaway price, although maybe him going to a home that you know and that suits him is better than selling him for more and not having that level of certainty.

I don't really know anything about horse prices these days as I haven't bought a horse for about 8 years, but I would expect this would be something you would want to negotiate between yourselves.

I would say, in agreement with the others, you want to strike a balance between what he was worth when he originally went on loan and what he is worth now. As the intention was never for her to buy him, you could be selling him on the open market for a lot more but of course, she has put in a lot of work.

Maybe get the difference between the two values and divide by two and use that as a starting point for the discount of his current valuation you'd be prepared to give her.

Sorry, I'm sure that's not very clear or helpful but good luck!
 
The other think to remember, is that this lady obviously wants to buy a horse now. There is the potential danger that if you don't sell him for an acceptable price, she could give him back to you, and you are not in a position to keep him at the moment. It means you will have to find another loan home which might not be so good.

I bought my horse after a 2 year loan, the lady did not particularly want to sell, but I really did not want to give the horse back. I paid what she had bought the horse for, which was £3k. That was 10 years ago. She was happy to know the horse was going to stay in a good home as she had no use for her.
 
I would have an honest chat with the lady who is loaning him - as tracey01 has said, if you are not in a position to take the horse back, you will need to come to an agreement with the lady about the price.

Bartering is the key! :)
 
I'd say be realistic in what you ask for him, the loaner has put a lot of time and money into him and by showing him his value has been boosted by her hard work. From the condition you describe when you brought him I'd assume his value was £500 max as lots of failed ex-racers with wonderful pedigree's are being given away at the moment. I'd say add £1000 for your work, so sell for £1500.

You won't be in a position to have him back for a couple of years and if you price him too high she'll prob just hand him back, you know exactly what home he'll be having with her and that he'll be happy which to me would mean I'd accept below market value. I'd never take on a 'project' as a loan as your effectively improving the horse for someone elses benifit which is prob what your loaner has realised...
 
I have no worries of her giving him back as she only asked about buying him on the off chance and was happy to continue to loan him. Though if I had to I could take him back I just would be pushed to give him the attention he deserves.
I just want to be as fair as I can on the price as he is happy and well looked after were he is :) and that is the most important thing to me :D
 
bj_cardiff said:
I'd say be realistic in what you ask for him, the loaner has put a lot of time and money into him and by showing him his value has been boosted by her hard work. From the condition you describe when you brought him I'd assume his value was £500 max as lots of failed ex-racers with wonderful pedigree's are being given away at the moment. I'd say add £1000 for your work, so sell for £1500.

You won't be in a position to have him back for a couple of years and if you price him too high she'll prob just hand him back, you know exactly what home he'll be having with her and that he'll be happy which to me would mean I'd accept below market value. I'd never take on a 'project' as a loan as your effectively improving the horse for someone elses benifit which is prob what your loaner has realised...
Click to expand...

I know what your saying about ex racers, though as I said I put a lot of money into a pro rider setting the basics into him, though I dont expect to ask thousands for him if only :D
 
Have you asked her what she is willing to pay? This may be a good starting point as she may have a figure in mind that is favourable to what you want :)
 
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