What security do I need to provide?
Every FOLK2FOLK loan is secured against land or property, it’s a fundamental part of how we lend. This security provides reassurance to investors and underpins our people-led, responsible lending approach.
But not all properties are created equal when it comes to security. So here’s what we will, and won’t, usually accept.
Acceptable types of security
- Residential property such as a second home, holiday let, or rental property, but not your main home (see below).
- Commercial property, such as shops, offices, industrial units, hotels, care homes, etc.
- Farms and agricultural land, including buildings, barns, and other assets
- Land with development potential, with or without planning permission
- Mixed-use property, e.g. farmhouses with attached holiday lets or retail with flats above
- Bare land where value can be clearly demonstrated and title is clean
We will consider properties anywhere in the UK (excluding the Channel Islands and Isle of Man).
What we typically won’t accept
- Your main home (FOLK2FOLK is not a regulated mortgage lender) Talk to us if your home is also your business premises i.e. farmhouse.
- Properties or land located outside the UK
- Very low-value land without demonstrable utility or market value
- Unclear title or significant unresolved legal issues (e.g. boundaries, rights of access)
- Any asset where forced sale would be extremely difficult or illiquid
Who needs to own the security?
We expect the property to be owned by the borrowing entity or by a party willing to grant a legal charge in favour of FOLK2FOLK.
Additional considerations
- First charge only: FOLK2FOLK usually requires a first legal charge over the property or land.
- Valuation: All properties will need to be professionally valued by a valuer from our approved panel.
- Planning or restrictions: Assets with planning potential or listed status may require additional scrutiny.
