YOUR SAY: LOAN ADVICE
Owning a horse is a large financial commitment and this has only been magnified by the recent struggles stemming from the cost of living crisis. These struggles have vastly impacted many equestrians across the country.
For many people, a share or loan agreement is a great way for people to enjoy the equestrian world without the major financial responsibility of purchasing a horse.
For the loanee, loaning a horse can be a less permanent arrangement than purchasing a horse. Loaning a horse removes the initial purchase expense, although it still involves many of the same responsibilities as owning.
Loaning allows the owner to maintain ultimate control over their horse’s future, while the loanee takes over the day-to-day work and costs involved.
It’s important that both parties get along to maintain a positive relationship in the interest of the horse. Keeping regular conversations, questions and communication between the loanee and loaner is vital for the horse’s welfare. It’s also recommended that owners make regular visits to see their horse and receive regular photos to keep themselves up-to-date on their horse’s health.
However, while the positive relationship between the loanee and loaner is crucial, having a comprehensive agreement or contract from the beginning of your relationship is the most important part. This ensures the horse is well looked after and the terms of each party’s roles are established and clear.
Contribution
There are several different types of loan agreements you can have, depending on each party’s needs and requirements. A full loan means that the loanee takes on full financial responsibility and care for the horse, often moving to a new yard to suit the loanee.
A popular agreement is a part-time loan. This means the loanee has set days and shares the care of the horse with the owner. The horse usually stays on the owner’s yard with the loanee paying a contribution to the upkeep.
A permanent loan leaves almost full responsibility for the horse’s welfare on the loanee with the owner having very little to do with the day-to-day upkeep.
All of these loans can work very well for both the loanee and the owner. It is incredibly important for both parties to consider the responsibilities and realities involved before making any hasty decisions. The horse and its welfare should always be at the centre of any decision-making.
Agreement
When organising a loan, no matter what type of loan you may be considering, it is vitally important to arrange a loan agreement.
Having a loan agreement is a way of helping to reduce risk and protect all parties involved. The BHS strongly advise that a mutually acceptable written agreement is drawn up, and don’t agree to something if you don’t intend to put it into practice. The BHS sample loan agreement can be used as a basic template that you can alter and personalise to your own requirements and circumstances.
The BHS advise that you have your loan agreement checked by a qualified legal adviser before either party agrees to sign.
Once it is signed and agreed, it’s important for both the loanee and the owner to keep a copy of their agreement so their terms are clear and easily accessible.
In case the worst happens and there is breach in the agreement, the issue is classed as a civil matter and legal advice must be sought as soon as possible.
BHS Gold members can make use of the free-of-charge BHS legal helpline for guidance and advice on completing the agreement for their specific circumstances.
Overall, the BHS firmly support the concept of loaning horses as it helps more people access the joy and magic of horses. However, loans should only be used when both parties have healthy relationships, have a comprehensive agreement in place, and have the wellbeing of the horse at the heart of all they do.
Emmeline Hannelly is the Horse Care & Welfare Education Manager at The British Horse Society.
