RECENTLY there have been newspaper reports about owners being unable to afford to keep their horses because of the credit crunch.

As a result horse rescue centres are being inundated with unwanted animals and some are having to turn them away. Winter is only going to make the situation worse because horses cost more to keep during the cold, wet months than they do in summer when the pastures are lush.

One solution to this desperate problem is for an owner to loan their horse to someone who can afford to keep it – and wants to. But beware, because unless you do your homework it can turn into a nightmare.

On the face of it loaning a horse should be a rewarding experience all round. A particpating owner – hopefully – knows that the animal is going to a good home; the new home gets a horse for free and the horse gets to be looked after properly.

That, at least, is the theory. But it can all unravel alarmingly unless basic precautions are taken.

Frequently, loan arrangements are made by word of mouth only and when something unexpected happens it can be the animal that suffers. In one instance a much-loved horse out on loan was sold for slaughter by its new carers without the original owner’s knowledge or permission.

Against that background, the British Horse Society strongly advises that for all sakes a written agreement should be made out and signed beforehand.

And remember that the“horse passport” document is no proof of legal ownership. If you loan your horse, but retain its passport, you are not necessarily the owner.

Passports are identification documents intended to ensure horses that have been treated with veterinary medicines not authorised for use in food-producing animals, cannot be slaughtered for human consumption. Vets do not necessarily have to see a horse’s passport before they treat it and certainly don’t have to inform the “owner” on the document before they put it down.

The bottom line is both owner and loaner beware.

TOP TIPS: MAKING THE LOAN PROCESS FREE OF HITCHES

Having a horse on loan might appear to be a cheap option but the only money you save is the purchase price. The ongoing costs are exactly the same.

Ensure you have adequate insurance and don’t be offended if the horse’s owner asks to see the policy.

Have a written agreement drawn up that clearly explains who is responsible for what. Although it doesn’t have to be written by a solicitor, it is advisable. Be sure to discuss with the owner what would happen if a serious accident or illness means the horse would have to be put down.

If the horse has an underlying problem it could result in expensive vets bills.

Get written permission about the type of activities the horse is – and is not – allowed to take part in and make sure they are covered by the insurance.

The loan agreement should include terms under which the horse can be returned to the owner by the loaner, or under which they can ask for the horse to be given back.