Purchase of smallholding in Devon

Purpose of the loan

The borrower used this loan to purchase a rural smallholding known as Edgecombe, unlocking new business and residential potential. The loan was structured to include 12 months’ interest and fees, giving the borrower time to execute his plans without servicing pressure.

The new property provided the space and facilities to:

• Set up a DIY livery yard for around six horses
• Apply for planning to split the main house into two rental dwellings
• Convert multiple barns into residential or holiday use
• Relocate from an existing property which will be sold as part of the repayment plan

The borrower had prior barn conversion experience and intended to gradually realise value through rental income, sale of surplus buildings, and potential refinancing.

Why investors backed this opportunity

• Attractive interest rate:
  • 8.75% p.a.
• Good security:
  • Freehold smallholding with residential, equestrian, and development value
• Strong credentials:
  • Repeat borrower with rural asset experience
  • Loan structured to retain interest, reducing early serviceability risk
• Clear business model:
  • Property enhancement and income generation through phased planning and asset disposal
• FOLKONOMICS™:
  • Promotes sustainable land use and diversification
  • Supports rural housing opportunities and business development

Thinking about investing?

FOLK2FOLK investors regularly fund projects like this, combining fixed monthly income with tangible, property-backed security and meaningful local impact.

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