# loan with view to buy - how does it work?



## Biscuit (13 August 2007)

hi there 

One of the people interested in G would like her on loan with view to buy. I will consider this thought I do need a long term arrangement one way or another.

I have always just owned my horses, never loaned and do not know anyone who has done a loan with view to buy - so I wonder what kind of contract people use.

Would you have just a normal loan contract (I have heard there is an up to date standard one on the BHS website?) for x time or do you amend it or add anything special about potentially buying at a later point? 

Just ot clarify - what she had in mind was not a brief trial period but a long term loan 1-2 years then potentially buying.

Thankies


----------



## Happytohack (13 August 2007)

You could use the standard BHS loan agreement and where it says the bit about the loan being renewed after 1 year, you can change it to say the horse will be bought for such an amount after one year.
In my opinion, loan arrangements can be fraught with difficulties.  What happens if the horse breaks down within the year and the buyer no longer is willing to pay the proper asking price?  I am sure there are happy loan arrangements, but everyone I know who has either loaned out or taken a horse on loan has come unstuck one way or another.  Can you not just sell your horse?


----------



## zigzag (13 August 2007)

I would prefer just to sell or a short term loan of a month then buy, as Meltdown sys what if she ruins the orse in a years time, you got a horse you then cannot sell


----------



## Bri (13 August 2007)

We put our pony out on loan with a view to buy. We used the standard BHS loan agreement but added a section saying that if by a certain previously decided date the loaners did not wish to buy him then he would be returned to us within a month.
 Loaners took him knowing the price we wanted for him, and then proceeded to try and wheedle us down to something that was less than half the original agreed price.
He eventually came back to us in a disgusting state and it took months to get him back to the happy little pony he once was. If I had the choice now I would always sell outright.


----------



## jumpthemoon (13 August 2007)

Personally I don't see the point in this - surely you don't need 1-2 years to get to know the horse before you decide if you are going to buy it? Sounds like they don't have the cash at the moment to be honest. If you don't mind loaning your horse out, then go for it, but I wouldn't hold my breath for a sale at the end of the 1-2 year period. You could well end up with them asking to extend the loan and not buying. I'm sure I sound horribly cynical, but that's my opinion anyway!


----------



## Biscuit (13 August 2007)

I would prefer selling her outright but if a really good loan home comes along I have decided to consider it. Would ask for references etc in advance and make a follow up visit after a couple of weeks though.

When people do LWVTB do they generally agree the price up front and say loan, then pay x price after for example one year, or do they wait until the time is up and then negotiate the price? 

G is only 4yo so if handled right then should rise in value, but like any other horse she could also get completely ruined in the wrong hands, perhaps more so due to her young and impressionable age.


----------



## Biscuit (13 August 2007)

I agree it seems they do not have the money and personally I do not see why they would have it later either once paying one more set of bills...  I would consider a long term loan to the right person so it would not be such a disaster if they decided not to buy in a couple of years time - as long as the horse was happy and well handled the whole time.


----------



## HenryandPeta (13 August 2007)

I must be the only person with great loaning experience then! When I was selling my previous horse, it was important that he went to a home for life - he had MASSIVE issues and I wanted to make sure wherever he ended up was the right place for him. I loaned him with the view to buy to a couple - we drafted up the BHS contract and agreed a date by which they would pay me an agreed and noted sum. Their loan period was a month only - I could not and would not do it for longer than that. By two weeks in they gave me the cheque! 

Also when I bought Henry, I loaned him for 6 weeks before paying the previously agreed sum - again, using the BHS contract.

I do feel that the maximum amount of loan time should be a month or possibly two - in this time frame not much damage can be done (in theory!). I would not loan for any longer for the reasons raised by other posters!


----------



## mlm (13 August 2007)

i would agree that a LWVTB should not really last 1 to 2 years. i had a LWVTB recently lasting 4 weeks. that should be enough time. perhaps you should lease with view to buy and then knock the lease price of the selling price. i went to see one last week for sale at 7k it was not right for me but the girl had been offered 2k now to lease him and the remainder 5k in 10 months as they were going to sell there old one.


----------



## jumpthemoon (13 August 2007)

TBH the only lWVTB's I've heard of the price has been agreed up front and then they try and knock you down because they pick holes in the horse (having got to know it over the loan period). I would be wary of LWVTB because of the fact the the people most likely want to buy but cant afford it. If it was just loan they wanted, fair enough - but to insinuate they will buy after such a long period of time would make me think I was being led up the garden path, so to speak...


----------



## burtie (13 August 2007)

There is noway I would loan a 4 year with a view to buy I'm afraid(and1-2 years wtf?). I would only allow a trial period with the full price agreed and paid up front. Why can't they buy now?


----------



## Bri (13 August 2007)

I'd always agree on a price up front personally. This is were we had problems, as the original price was even stated in the contract and signed on - the loaners as I said didn't look after the pony very well at all and as a result he'd become difficult to ride they used this when it came to buying him, despite the fact he's been a little angel when they took him on.


----------



## Biscuit (13 August 2007)

so it isn't just me then finding it a bit strange! 

I find it a bit weird that if they would not consider buying before in a couple of years time they did not just ask for a long term loan. Also, unless they have some sort of windfall coming, I don't see why anyone would have more money AFTER having aquired another horse hehe


----------



## Blizzard (13 August 2007)

I got Beau on loan view to buy, simply because I was sick of seeing horses that sounded super, but were dangerous, knackered or both!

When I got him he had done nothing but stand in a field for a year though, so for us it was a bit of a gamble, he was only 5 so it could have went either way.

Luckily he has been a star and we knew we wanted to buy him after the first few weeks, our loan agreement was for a year, to be extended as long as we wanted, but he is already paid for beause he is so perfect and we will never find another like him.

We used the BHS loan agreement, and agreed the purchase price beforehand. 

So LWVTB can work!


----------



## malibu211211 (13 August 2007)

Hi,
 I did a loan with view to buy with D, I had him for 9 months on loan before buying him. We had the BHS contract and just amended it. Put in the contract the agreed price though and state whether tack and wardrobe is included in the price.

It's a good way for you to know that the horse will be well cared for and for the purchasers to know they are buying the right horse for them


----------



## OrangeEmpire (13 August 2007)

I had Jack for 6months before buying him - I needed this long to be sure it was the right thing. But to be honest I knew as soon as i got him that I'd never be sending him back! I think 2 years is a bit long tho.


----------

