A full loan is where the owner remains the owner, but the loaner has responsibility for the horse every day and usually moves it to a yard of their choice.
Correspondingly, are horse loan agreements legally binding?
The loan agreement is, in essence, a statement of fact confirming the ownership and intended scope of the loan, and a set of guidelines that both parties can refer to, to ensure that they get the most of their arrangement. It is a binding contract that can be relied on in Court if necessary.
Also question is, can you insure a loan horse?
There are a couple of options for horses on full loan. If the horse is already insured through his owner, they’ll simply need to let the insurer know about the loan arrangement you have so that they cover you as well as the owner. The other option is to take out your own insurance to cover you and your loan horse.
Do you pay to full loan a horse?
Full loan = You can take the horse to where ever you want unless owner wants it on the present yard. You have full responsibility of the horse, and will have to pay for everything. Any tack, rugs and equipment damaged will have to be replaced. You will also have to pay for vets bills.
To buy a horse, you can expect to pay between $100 – $10,000, depending on the horse breed’s pedigree, how you are planning to use the horse, and your location. The average cost of a hobby-horse is about $3,000. According to Seriously Equestrian, the most expensive horse breeds can cost up to $250,000.
Generally, the cost of a full lease for a year will range from 25 to 30 percent of the horse’s value?in other words, about $2,500 for a horse worth $10,000.
Top Tips for the Loanee:
- Always view and try the loan horse before agreeing to the loan. …
- Make sure you get on with the owner. …
- If possible have the horse on trial for an agreed period before the loan commences.
- Always finalise and sign the loan agreement before the loan commences.
Issues with loaning involve having no ownership of the horse, which potentially means having the fear of the horse taken off you. … This does work both ways, as an owner, there is the potential for the horse to come back to you with very little notice.
Sharing a horse has become increasingly popular at Kingston Riding Centre. … This scheme is ideal for anyone who would like all the benefits of owning a horse without actually having to buy one and it does offer the opportunity to take your riding to the next level.
Weighing the Costs
For mortality coverage you can generally expect to pay premiums of anywhere from 2.5 percent to 4 percent of the horse’s value. That means, for example, that the cost of the annual premium to insure a horse valued at $7,000 will likely be between $220 to $280.
To ensure a potential sharer has a good understanding of your horse, approach sharing in the same way you would if you were selling him. Explain your horse’s temperament, give them details about the way in which he’s been ridden and provide them with a run-down of his medical history.