Loaning a horse: Have you considered a loan agreement?

Every horse owner will understand that the financial cost of ownership can be considerable.

In recent years, loaning a horse to a third party, or having one on loan, has become very popular, usually because its owner can’t afford the time or money to keep it and can’t bear to sell it.

For these reasons it’s essential that a loan agreement is obtained to avoid costly disputes at a later date.

A standard loan agreement can provide a useful starting point, but in order to adequately protect you financially, and to ensure that your horse is not put at risk, any agreement should take into account the specific requirements and individual circumstances of both parties involved.

Some loan agreements may even provide for the borrower to have an option to purchase the horse within a specified period, for a specified amount.

There are common disputes usually around the standard of care the horse is receiving, how long the loan is for, and who pays for the horse’s keep, insurance, and vet fees, as well as the type of work it is allowed to do.

Legal disputes also regularly occur as a result of owners promising a commission to the borrower upon the sale of a horse, but never following through with the money.

There have even been reported cases where the borrower refuses to return the horse, or the owner disputes ever owning the animal in the first place, refusing to have it returned.

If you find yourself involved in an ownership dispute or want to know more about how to prevent an ownership dispute arising, it is recommended that you seek appropriate legal advice from a solicitor.

Harrison Drury can prepare a bespoke agreement, tailored to specific loan requirements, to and provide peace of mind should matters descend into dispute. We can also advise on horse and livery agreements.

For more information, or to discuss this further, then please contact Karen Piontek on 01772 258321, or email at Karen.Piontek@harrison-drury.com.