Useful information for a loan agreement

[emma587]

I have always owned horses but I'm just about to take one on full loan so I don't know the full in's and out's of loaning.
Does anyone have any history or information for me regarding who pays what, who's responsible for what etc. It would be very very much appreciated! Obviously an agreement will be drawn up!
thanks

 

[pippixox]

when I put my boy on loan the loaner was responsible for every cost, I literally just staid in touch and visited every couple of months. he went with tack and rugs which had to be returned when he came back. she had to insure him for public liability and vet costs just encase.
i got a loan agreement off the bhs website which was good

 

[hnmisty]

Well, on a full loan, you pay everything. Exactly the same as owning a horse, only someone else owns it

We originally got my first pony on loan, and the agreement stated that we would pay all the vets bills, apart from azouteria (which she somehow managed to get with the then-owners), in which case, we'd go halves. Worth considering something like that if there is anything they are susceptible to due to previous experience.

You definitely need to put in a termination period for both parties, eg a month's notice. Also how often the owners can visit, and how much notice they should give you. You'll soon be driven mad if they turn up on your doorstep every evening. Misty's owners used to "drive past". You can't just "drive past", they had to go out of their way, down a dead end road.

ETS: Misty's loan contract was simply drawn up by the owner, stipulated that no one else was allowed to ride her, listed everything she came with (including a sleeping bag). The owner of a horse I later had on loan had a contract drawn up by a solicitor, and it included what activities I could and could not engage in with said horse (couldn't take her racing. Damn). Also said we had to notify her every the time the horse was going to be kept elsewhere (eg when we went on holiday), I think she wanted prior notice so she could inspect the place she would be going to.

 

[smellsofhorse]

A normal full loan the loan person pays everything.
Although sometimes the owner pays the insurance.


But basically its up to you both to agree and be happy with.
Its your agreement vetted you so you can decide details between you.

 

[tubby1]

Hi , I've just taken on a full loan pony for my daughter . We used the BHS agreement which seems very comprehensive. I pay for everything including his insurance. We have had a conversation about duty of care if I was unable to contact the owners & a decision was needed on PTS & the owner is happy to let me make the call. So far it's working well.

 

[Spottyappy]

I have one on full loan-with no agreement in writing at all. The owners decision. We pay all bills,and he is insured to a value verbally suggested by the owner.
We have one of our own out on full loan,and adapted the BHS agreement to include things such as pts, as someone else suggested, also the fact that they must use our farrier, except in an emergency if he is unavailable.
We have added in a months notice either way if either party wishes to terminate the agreement. Also, the uses pony is for. Plus the fact the loaner must keep pony insured to her value or in the event of pts pay us her value as stated in the agreement.
We did miss off things in hindsight we should have included, such as being able to ride her ourselves on odd occasions, with notice to the loaner. The reason for that is to ensure she is still responsive and not been ruined(am sure the loaner won't, but would have liked that covered). Plus, the livery yard she is at will not take instructions from us, as their contract is with loaner. In the event we are not happy with something they are doing, we have to rely on loaner advising them, and I am not fully ok with that as I feel there is sometimes a delay in things being actioned. So, things need tweaking if we do it again.

 

[LovesCobs]

Second the Bhs agreement. Also I strongly suggest the owner has the insurance level they want (loaner could have Bhs membership to cover 3rd party) if loner has insurance and the horse had treatment, if the horse is returned during the treatment it will no longer be covered (as owner would need to get their own on its return) the owner could ask for some or all of it to be paid directly to them (though I feel that as some if the insurance premium covers death, that money would go to the owner so they really should pay part of the insurance) but that's just my opinion
The other thing to consider andante decide on advance is what happens if there is a medical issue and you and the owner disagree? I know if a situation where a horse was recommended PTS owner wanted more time to see if it could recover. Unfortunately this didn't happen but the owners decision cost the loaner another 10 days of hospital care and vets bills (it had already gone over the insurance premium) so if the owners keys the decision it that case who's bill is it? Thinking if things like that will avoid stress and fall outs at times of extreme stress. I hope all that made sense!

 

[LovesCobs]

Sorry for the endless typos in my last post, I'm on my phone ......

 

[tubby1]

Regarding the insurance, the owner has the pony insured & I pay the owner the amount to cover it .

 

[MiJodsR2BlinkinTite]

When I loaned my boy out eighteen months ago, I downloaded the BHS one from their website; you'll probably need to adjust it to fit your particular loan circumstances.

IF you PM me, I might be able (hopefully) to dig out the one that I used for mine, and e-mail it on to you.

Make sure it includes a "euthanasia" clause, i.e. in the event of unforseen situation where the horse is fatally injured, that a vet may euthanise to prevent suffering.....words to that effect.

Also..... if you can word it, it might be worth including a clause about who pays for livery fees should the loaner wish to give up the arrangement. I say this because the numpty girl who had my boy stuck it for only five weeks before she realised she couldn't afford the livery for him - result, I had to pay through the nose as I didn't have enough stabling at home (had to build one specially so he could come home!). So, a word to the wise, if you can include something which covers this, it might be advisable, but dunno how you'd word it, sorry brain not working at the mo.

 

[emma587]

Thanks for all your advice, its fab, love these forums.
So would I be right in thinking that if the owner keeps their insurance up for the horse (saves me taking out a new policy) I can just pay them the insurance premium? And then all insurance for the horse is covered. (but would obviously just have to get my own insurance for riding).
If the horse had an accident I would pay the vets bill and if the insurance would cover it, once the owner recieved the insurance payment then they would just pass that money on to me to cover my vets costs??
Not sure if that makes sense written down, but it does in my head....