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  1. #1
    Join Date
    Sep. 17, 2011
    Location
    Cheney, WA
    Posts
    537

    Default Lease or Lease to purchase terms

    Hi All!
    I have a jumper pony that is for sale, possibly lease to the right home. I have someone coming to look at her in a few days and I've never had to deal with leasing. Help me! Obviously the potential lessor and I will discuss terms more after her daughter has tried the pony but what kind of terms are common? I want to be prepared when they come out or for any other potential lessors. In this case she is a trainer and the pony would be at her facility. Is it common to do a free lease or a paid lease in this kind of situation? And in the lease to purchase field do you get a down payment of some sort and then parcel out the rest of the amount? Thanks in advance for all the help! I haven't had to deal too much with selling much less leasing!



  2. #2
    Join Date
    Dec. 20, 2012
    Location
    Ontario
    Posts
    143

    Default

    In the past when we have leased a pony for my daughter we always did a paid lease where we took the pony off the property to our barn. The cost was usually about 1/3 of the assessed value of the pony. When we bought the current pony we paid a little over a third for the least for the year and then the balance at the end of the lease when we had decided that we did want to keep her for certain. Good luck!



  3. #3
    Join Date
    Oct. 14, 2002
    Posts
    545

    Default

    Whether you do a free lease or charge a lease fee will depend on what you're looking for and whether the trainer is willing to pay anything. But especially going off-property, I'd want to charge a lease fee, unless you're getting some other benefit out of this, like getting the pony marketed at shows on their dime.

    A typical lease fee is 1/3 of the horses value per year. Lease to purchase contracts that I've seen allow the lease fee to be put towards the purchase price at the end of the lease, and typically include a date in the lease that they must notify you by if they intend to exercise the purchase option.



  4. #4
    Join Date
    Jun. 20, 2012
    Location
    The Part of TN in the Wrong Time Zone
    Posts
    1,916

    Default

    For us, a lease was 1/3 horses value for a year, but a lease to purchase was 1/2 value then the second 1/2 if we buy him.
    .אני יכול לעשות הכל על ידי אלוהים


    1 members found this post helpful.

  5. #5
    Join Date
    Sep. 17, 2011
    Location
    Cheney, WA
    Posts
    537

    Default

    Thanks guys! That would put it right about where I was thinking if we were to do a paid lease. You have been very helpful!



  6. #6
    Join Date
    Apr. 20, 2011
    Posts
    741

    Default

    and you should make sure that the lessee takes out insurance on the pony, with you being the beneficiary :-)


    1 members found this post helpful.

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