Probably done to death but full loan help?

[hanny93]

Hey,

I have recently come across a beautiful little mare who I was originally going to part loan.

I've seen her a couple of times and the owner has suggested a full loan which was my original plan, I didn't actually want a part loan.

The mare is gorgeous, but quite green, which is fine by me as I don't mind a challenge, my question is am I being stupid in considering a full loan of a green horse that is quite young and probably won't move off the current yard?

I'm obviously going to ask for a trial and ask for a contract, but can anyone see any problems immediately?

I'm so worried that I'm going to make a huge mistake and upset me, the horse and the owner in the process..

 

[Silver]

As long as both parties understand what is expected of each other and finance, insurance etc is covered and an agreement in place then all should be fine. You will of course need to get along with the owner and have similar views to her where horses are concerned for things to run smoothly. Do also of course assess your owner time, ability etc to ensure you can fully commit. Not the best time of the year to take on a horse but enjoy.

 

[ihatework]

I think the main thing to do would be to have an upfront agreement that if the horse was ever to be sold that you get first refusal at a pre agreed price (the horses value when you start the agreement)

 

[hanny93]

As long as both parties understand what is expected of each other and finance, insurance etc is covered and an agreement in place then all should be fine. You will of course need to get along with the owner and have similar views to her where horses are concerned for things to run smoothly. Do also of course assess your owner time, ability etc to ensure you can fully commit. Not the best time of the year to take on a horse but enjoy.

Yeah, I missed off insurance. What's the best type to get? I've never been able to understand the differences and what's best for who!

I'm not bothered about winter, I do shift work so have to make time for regular things and there's an indoor where we are so its ok riding wise.

Thanks!

I think the main thing to do would be to have an upfront agreement that if the horse was ever to be sold that you get first refusal at a pre agreed price (the horses value when you start the agreement)

Never thought of this, thank you!

 

[Annagain]

You need to sit down with the owner and work out an agreement that is then put into a written contract. If you're worried about her wanting you to put all the work into schooling the horse on and then claiming her back and effectively having her schooled for nothing put a clause in that says if she ends the loan within a certain amount of time, she will have to compensate you for the work you've put in. Work out the horse's value now and agree how much of the uplift you would be entitled to if you improve her. If she wants to sell, you have first refusal at current valuation.

 

[Kezzabell2]

my main concern with a young green horse would be, is the owner just looking for someone to get the horse up and running nicely (without have to pay a pro to do it) and will then take all of the hard work that you've put in and sell the horse at a profit, or end the loan becuase the horse is now doing what they want it to do, without having to do the work themselves! Or you will put the work in and they will offer you to buy it for a lot more money that it is worth at the moment

 

[hanny93]

This seems to be the main concern doesn't it?

Do you think this would be covered by a contract?

I don't think I would mind putting the work in for her to then be used appropriately as long as I was thanked for it, as I've never been into showing or competing really..

I don't know now, I'm worried!

 

[MiJodsR2BlinkinTite]

You need to sit down with the owner and work out an agreement that is then put into a written contract. If you're worried about her wanting you to put all the work into schooling the horse on and then claiming her back and effectively having her schooled for nothing put a clause in that says if she ends the loan within a certain amount of time, she will have to compensate you for the work you've put in. Work out the horse's value now and agree how much of the uplift you would be entitled to if you improve her. If she wants to sell, you have first refusal at current valuation.

^^^ This..... far better to have everything all tied up like a parcel beforehand, than to regret things later.

I've been both a loaner and a loanee. The keyword IME is COMMUNICATION. You and the owner need to communicate on a regular basis and that communication needs to be open and honest. You WILL encounter problems with the horse, that's inevitable, and you need to be able to talk to your owner about it honestly and both of you discuss how you approach things. She in turn will be reassured if you keep her fully informed of all developments and how her horse is going.

Good luck!