loaning advice

[Chestersmummy]

My gelding is going out on loan at the end of the month and the person who is loaning him has said she will buy him at Christmas. I am wanting to use a contract. How long shall I put yhe contract in place for and shall I put a clause about if I'm not paid by x date then I shall take the horse back?

 

[Polos Mum]

TBH this is a situation fraught with disaster - if you search for similar threads you'll many go wrong, contract or not (going to court to enforce a contract like this is time consuming and expensive!). Just get her to buy him now or keep him at your yard and let her try him as much as she likes until she decides she wants him

 

[smellsofhorse]

I agree with above.

So much can go wrong.
Even with a contract things go wrong and can they actually be inforced.

I'd let her them try horse as much as possible, take horse places or even do a share/part loan based at your yard until full payment is made.

 

[Chestersmummy]

Shes keeping him at the yard where he currently is. I trust this lady as she has a really good reputation and her references are brilliant. Shes a BHSAI and has good feedback from her clients.

 

[The Fuzzy Furry]

Just to make you think.....
What if horse 'breaks down' at end Nov? Is she still going to buy him then?
What if she changes her mind? Will you be in a position 2 weeks before xmas to keep horse out of your own pocket?
What if she does something with the horse that WILL cause you an issue (letting someone you dislike ride him, or taking him to another yard 2 months down the line?)
And then there is payment issues.....

As said by others, this IS a minefield.
A watertight contract is NOT going to be cheap, but if you are still wanting to go down this route, then take legal advice (from BHS if a member) and get solicitor to draw up contract.

Remember, however lovely someone is, you can still have huge issues down the line - even with your most best friends.......

 

[MiJodsR2BlinkinTite]

TBH this is a situation fraught with disaster - if you search for similar threads you'll many go wrong, contract or not (going to court to enforce a contract like this is time consuming and expensive!). Just get her to buy him now or keep him at your yard and let her try him as much as she likes until she decides she wants him

Yep, ditto this.

And if you DO decide to loan him out, make sure you get as watertight a contract as possible. The BHS website has a good pro forma one which you can then adapt, or if you PM me I think I might be able to dig out the one I used for my boy when I sent him out on loan.

My advice is that you don't accept ANY money from the potential loaner. IF you do decide to loan him, it is on the basis that the horse is on "loan", or you could say that its a "loan-with-a-view-to-buy" BUT basically you run the risk of someone having your horse and totally ruining it, and/or b@ggering you about saying they're gonna buy it, which then gives someone a free horse to mess up.

Personally, I'd rather sell something than loan it. But that's just my experience. The only loan I'd ever consider again is to equestrian college for them to use the horse on working livery.

 

[Polos Mum]

If she's employed and a good reputation with lots of clients why doesn't she just buy him straight away? No need for a four month loan at all? She should have cash to buy him (assuming he's not £10K) and experience to decide whether she likes him in 3 or 4 rides.
Even if she is absolutely lovely there are still lots of things that could go wrong that a watertight contract wouldn't help with.

 

[MiJodsR2BlinkinTite]

Shes keeping him at the yard where he currently is. I trust this lady as she has a really good reputation and her references are brilliant. Shes a BHSAI and has good feedback from her clients.

Um, sorry, have just read this.......... ehm, I've got a very suspicious mind; if she's teaching, then it just might be that she's looking for a horse (like yours, say) to use for teaching. Do you really want your horse used for her numpty students??? OK if you think your horse could deal with this, BUT if you want to sell it on after that, personally I'd think again.

If she likes your horse, she's got the experience and know-how to make up her mind NOW not faff around till Christmas when no-one will want to buy anything and you might as well give your horse away.

Sorry OP, think you could be taken advantage of here!!!

 

[Chestersmummy]

She has said she will be using him for lessons but as he is not a novice ride it will only be a few experienced riders. She will mainly be using him for herself to go BS on. I have drawn up a loan agreement which will last until the end of this year.
Its almost like he will be on working livery, but not myself paying the livery.
In regards to having him back 2 weeks before Christmas that wouldn't be a problem as its not for financial reasons that he is being sold.

 

[cbmcts]

IIWY I would take a large deposit, say 50% non returnable. If she buys it goes against the purchase price. If she doesn't, well consider it a lease fee especially as she wants to use the horse commercially.

The other thing that jumps out is that if he is being used for a business ie lessons even if only a few will he still be insured? Most policies I've seen don't allow business use so who covers vet bills and public liability if there is an accident? The loaner might say she will but you really need check that the buck won't stop with you.

Completely off the wall idea Since you're not selling for financial reasons could you keep on advertising but offer her first refusal at an agreed price at any time - obviously there is an ethical issue there as when would you tell prospective purchasers about this arrangement but it might encourage her to s**t or get off the pot?

If you are going to go ahead with the loan I think I would ban the use of him in lesson and draw up the contract as loan with a view to buy with strict timescales and a pre agreed price. Then pray it all works out!

 

[Polos Mum]

OP give your third party insurer a call and make sure you're covered in this situation, if your horse is being used for lessons and there is an accident the riders may well come after you.

Sounds like a barmy arrangement to me but if you are really keen to go ahead make sure you're protected.