Differences between a
Horse Lease and a Horse Loan

There are several different horse lease or loan types commonly in place. Firstly, there is a clear difference between a Horse Lease Contract and a Horse Loan Arrangement.

Let's take a look at Horse Loans first:-

Loan Arrangement - Ridden

When an owner decides that they are unable to ride their horse or give them the time they require they often decide to place the horse on loan. Reasons for doing so could include:

• a temporary lack of financial resources,


• simply that the pony is outgrown


• or perhaps changes in their personal life that restrict their ability to care for their horse.

In these circumstances, the owner would look to loan out the horse to a suitable home where they can still keep in touch with the horse but have the peace of mind in knowing it is not going to waste in a field.

The owner has the right to decide what type of activities the horse is used for and where it is kept.

For example, if loaning locally, some owners ask that the horse stays on its current livery yard so that they can visit regularly.

This horse loan is established for a set period of time, perhaps 3 months or 1 year and reviewed or renewed at the expiry date in case the owner has a change of heart or wants the horse returned to them.

Often if the owner does decide to sell at a later date, a condition can be set out in the Written Loan Agreement loan agreement that the loanee (person loaning the horse) can have first refusal.

This means they would have the option of buying the horse at an agreed price before it is advertised on the open market.

Other types of loan arrangement include:

Permanent Loan

The arrangement is intended to last for the life of the horse (hence "Permanent Loan" so should only be considered if you intend to retain the horse for a number of years).

In the event that you change your mind the horse MUST always be returned to the owner.

It may sound obvious but a horse on loan is always the property of the owner and must never be sold on to a third party without the owner's consent.

Loaning as a Companion Only

The horse is retired and is loaned out on the understanding that he will not work/be ridden or otherwise used and can live out his days at grass.

This is not the right loan arrangement for you if you want a horse that you can ride and is only suitable if you are sure you have the resources to maintain a horse that may have significant veterinary bills with advancing age.

Rehoming / Adoption

These horses have usually recovered from neglect or cruelty so are only rehomed to experienced horseowners who are aware of the horse's history and can accommodate their needs.

As with a loan arrangement, the horse remains the property of the charity for life in order to protect his long-term welfare.

Due to their history not all of rescue horses are able to be used for riding, so more often it is the case that they are rehomed as companions.

If you are interested in finding out about the valuable work done by horse welfare organisations, we have included a link to the World Horse Welfare website on our Links page.

Now that we've looked at the different types of Horse Loan available, how does a Horse Lease differ? What are the main differences between a Horse Lease and a Horse Loan?

Click on the link to find out more about Leasing A Horse

Click here to return from Horse Lease or Loan Types to find out about other alternatives to Buying A Horse.

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