lounge lining a really stiff horse?

i had a very sweet palmino gelding come to me recently. in his past he has had someone spend time with him. in the recent past, he has been a child's horse of some sort. while gaming, they injured his stifle and in turn sold him at an auction. now i have him to resell him. he is 9, and a well bred peppy san and poco gelding and very intelligent. a steal!

i have never worked a horse this stiff. his body is like iron, his muscles are so tense all the time. i had the vet check him out, it is not a medical/physical issue. his stifle is entirely healed, as we did all the necessary checks. its the way the horse is. i just began teaching him how to loosen up his body, and he's almost getting it.

my question is, he becomes somewhat relaxed when im free lunging in side reins. the only problem is, its only after lunging him for 30 minutes. i never believed in lunging a horse over 20 minutes. should i just keep doing it because it works? is it true that he's actually relaxing or am i imagining it?
is tired ok, if he is loosening because of it?
im more interested in bending and supple-ing then transitions.
thank you becky for your vast contribution of knowledge of lunging! all i can say is duh?
thanks guys, its tough choosing a perfect answer. im not sure what im going to do yet. its going to take some time.
ron - i use that alot. the only thing about this horse is he scares himself easily. im afraid he might flip over?
 
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