Whats involved with loaning a horse?

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To loan or lease a horse or pony can be, and should be, one of the most rewarding and enjoyable ways of getting into equestrianism. It ought to be a mutually beneficial agreement where both parties, as well as the horse or pony, gain. However, loaning a horse is fraught with possible pitfalls if the correct measures are not carried out successfully. This article will detail the factors that have to be considered when entering a loan agreement and will give note to the legalities that are involved.

The Situation - for the Owner

Deciding to put your beloved horse or pony on loan is bound to be a hard decision to make as an owner; nevertheless it should not be seen as an easier alternative to selling. Whether you are loaning as you still want to play a part in your horse or ponys future, or perhaps your child is off to university and would like to start up again when they finish, or maybe work commitments or monetary constraints make it impossible to carry on.

Whatever the reason, you have to decide above all else what is best for the horse or pony. If it is old and unsound, it may be better to take the hard decision to put it to sleep. However, if the horse is still fit for the job and is sound and healthy, then there is no reason, under the correct binding agreements, that you should not put your horse or pony on loan.

Before you decide on loaning your horse/pony you should assess the people that will be looking after him/her. Whether they are your best friend, a distant relative or someone in the next village, you should always make sure you check out the premises and get references. Have a look at other horses in their yard and ask: do they look happy and healthy? Are they being cared for correctly? Have the stables been mucked out and would the stabling and fencing pass the BHS/PC Manual of Horsemanship? If you are able to answer �yes to all of these then that is a great start.

The next port of call is to get a written agreement that will cover all areas of the horse or ponys welfare and owner/loanee liability, as well as insurance and terms of loan conditions.

Before we get into the contract it is important to look at the situation for the loanee.

The Situation - for the Loanee

Loaning a horse or pony can be an extremely attractive and cheap alternative to purchasing one outright. However, ultimately the only money that you end up saving (depending upon the agreement) is the purchase price of the horse. Usually all other costs involved including livery fees, shoeing, vets bills, feed and bedding are all payable by you, the loanee.

Secondly you should consider your riding ability and the suitability of the horse or pony you are looking to loan. There is no point loaning a horse or pony to go eventing or showjumping, when it is a pure dressage horse/pony. Likewise it would be unfair on all parties to loan a horse or pony to go hacking when it is a highly strung competition horse/pony; or vice versa to get a happy hacking horse/pony and try to make it compete at a strenuous level. Once this has been considered, and youve decided that you would like to loan as opposed to buying, you have to ensure that an agreement is put in writing.

The Agreement

Now that both parties have mutually agreed that they are happy with the situation, you must ensure that a written agreement, if you will a �declaration of intent, is written up if possible by a solicitor, and signed by the owner and the loanee.

This declaration is used to cover all aspects in order that both parties know the exact �ins and �outs of the terms and conditions of the loan, and that there is a legally binding document in place in the unfortunate event something goes awry. The declaration should cover the following:

Insurance. Third Party (legal liability), both parties should have cover. The owner should take out the horse/pony insurance policy but the loanee may reimburse the premium. This is on an individual case basis so should be adjusted accordingly.

A fee if any, for the loan or lease. Duration of the loan and a review date. It is important to stipulate how long the loan is for, and when, notwithstanding circumstances, a review will be taking place. Within this clause should also be a notice for cancellation of agreement.

Tack and equipment. If horse tack is included, be it bridles, turnout rugs, show rugs, head collars, or perhaps it could be a leather saddle that has tested the rigours of time and is precious to the family, or even a new synthetic saddle; either way the terms should include use, repair, size, make, colour and should be covered by insurance. A full inventory should be included.

The use of the horse/pony. In line with the insurance, the use of the horse/pony should be stipulated. Any disciplines or levels it can or should not compete in should be noted so as to not put undue stress on the horse.

Rider's. Should be named if going to a private home.

Vets. Who is responsible for costs and whether the owner has a preferred practice.

Farrier. Usually the loanee is responsible for shoeing costs, but either way this should be noted to avoid confusion.

Feed, stabling, fencing and grazing is the responsibility of the loanee and should be noted as such. The owner should inform the loanee of routines in grazing as well as feeding, and it should be the loanees responsibility to try and keep the horse/pony to its normal routine wherever possible.

Any special conditions should be made aware such as vices, allergies medication, etc.

Visiting right of the owner. The loanee should be allowed to go about their business but the owner has a right to visit and ride their horse, and even take it to horse shows if need be. A notice period for visiting should be agreed between both parties.

Be sure to discuss and have in writing what should happen in the event of a serious accident or disease.

It should include the fact that it is the loaners horse or pony and therefore the loanee has no right to sell or loan/lease the it to anyone else.

If all the above factors are taken into consideration and an agreement is signed and dated by both parties, then you can rest in the knowledge that the utmost has been done to secure the health and welfare of your horse or pony.

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