watertight loan agreement..advice please?

[Dizzykizzy]

I have been unable to sell my mare sadly and as she has been in full livery with a competition rider I can't afford to keep her there through the winter. We have no-one to ride her and she is fit and ready to go out competing so I have now offered her as loan with a view to buy.
Someone came today who really wants her but wants to loan her for 6 months first. Do you think this is too long?
Also I will use the BHS loan agreement but is there anything I need to be careful of? I am worried she may be either injured or ruined and then be sent home, is there anything I could write into the contract to prevent that happening? Also can we agree a price now? Is that fair only I don't want her to say in 6 months she is only worth half of what I am asking.
Any advice welcome please.
I have been hurt by loaners in the past and also just heard a very nasty story of a loan horse that was sold on.
The loaner is a fair distance from me so won't be easy to check on a weekly basis.

 

[burtie]

If it is a loan with a view to buy, take the full purchase price from her now and put it safely in the bank. Then write a clear loan agreement explaining what of her money you will keep if the mare is returned. and under what circumstances.

 

[mystiandsunny]

Totally agree with the above.

 

[PennyJ]

And get quality insurance on her with LOU just in case the worst happens. Don't leave it up to the loaner to sort it out, "just in case".

 

[Dizzykizzy]

Thanks all of you, Oh wow! I hadn't thought of that....I'm not sure she'll agree though, I'm not sure they have the money right now which is why I'm wondering she wants such a long period to decide.
I had thought of LOU on insurance, can I ask to see her policy?

 

[Nic74]

You insure her and she pays, that way you know the insurance is in place. I sold a horse on a months trial before buying and I hated every minute of it, so much can go wrong. Sometimes loan with view to buy is the best and easiest way to sell, but 6 months is too long. I'd give them a month max.

 

[pixiebee]

ive just done loan with view to buy (just bought one!) had him on trial for 5 weeks, purely because I wanted to kbnow horse was right for me as too much money to waste if not and secondly I did not have the moeny right away, I made it clear to the owners about my circumstances, I believe honesty is the best policy-ask her if she has the cash now-if not id say 2 months loan max and put a deposit down at least if the horse is worth much money especially!!

 

[PcDavies]

View her/his ID, either a driving licence or a passport. Write down who they are & visit their home address to make sure you know who they are & where they live first.

If they are 100% genuine, they shouldn't mind showing this info.

 

[Blodwyn]

My friend did this with her horse, she had her on loan for 6 months with the owner checking her out a few times and then after the 6 months with she told the owner she wanted to buy her they put the price up! she was devistated but payed £1000 more for her as she fell in love with her.

agree with above make sure you know who they are and take every possible contact number, and view the yard they are moving to, as if they dont take your horse you will want to know that for that time of loaning they are some where safe.

xx

 

[amiacat]

I had a horse on loan (although not with a view to buy, she was just a long term loan) and the owner organised the insurance, had it in her name so she knew what was being covered etc. and I paid the premium. This seemed fair to me as I was the one paying the vet's bills and actually riding the horse.

If they can't afford the full asking price right now how about asking for 30-50% of it? And put in the agreement how much of this they get back should they decide not to buy your horse. Not quite sure how you decide how much but I guess it comes down to negotiating and reaching a happy medium for both parties.

I personally think 6 months is too long as well, if the purpose of loaning is to see whether the horse is right for you, this can be established in a few weeks.

If I was ever thinking about loaning with a view to sell it would be the passport that I would have worries about. Do you keep the passport with the horse or keep it with you?? It is illegal to travel a horse without one, and if they are planning on going to shows during the trial period then this needs to be addressed. At the same time, I would worry that with the passport, an unscrupulous loaner could do the unthinkable...but I'm sure that most people are genuine and honest, I'm just cynical!!

Good luck with whatever you decide to do, hope it all works out x

 

[jhoward]

my loan agreement covers all of this. i also ask for proof of person and address so pass port and a bill, with the insurance it is stated horse must be insured for full value and for lou. i must have a copy of the policy and the policy number, i do also confirm with said insurer that the policy exisits.

when doing a lwvtb ive not asked for any money before hand, but do state agreed sale price in the agreement, i had one horse go on loan wvtb the lady ended up paying in installments, each one was receited for and it was written and signed for and witnessed on the loan agreement. it also stated that until full sum was paid the horse was legally mine and if for any reason i was unhappy with the care of the horse etc i would still have the right to remove it. any money paid minus travel costs/vets bills etc would be refunded.... can you tell ive been stung before??