Devon & Cornwall Securities completes £848k commercial mortgage on North Devon farm

Devon & Cornwall Securities Limited has completed an £848,575 commercial open-ended mortgage secured against a 144-acre farm in North Devon.

The loan represented 63% loan-to-value against the property’s 90-day sale value and enabled the borrower to refinance an existing mortgage that had reached maturity while stabilising their wider financial position.

The borrower owns the agricultural holding, which comprises pastureland, moorland, a farmhouse and several outbuildings.

The funding was used to redeem an outstanding £230,000 mortgage that had fallen due, while also allowing the borrower to settle a number of additional liabilities, including CCJs and company liquidator costs.

Alongside restructuring these historic debts, the facility has enabled the borrower to move forward with plans to diversify the farm’s income streams.

These plans include the installation of glamping pods and the conversion of existing barns, creating additional revenue opportunities from the site.

Devon & Cornwall Securities said transactions of this nature sit firmly within its lending appetite. As a non-status, open-ended commercial mortgage lender, the firm regularly supports borrowers whose circumstances fall outside the criteria of mainstream lenders.

The open-ended structure of the facility means the borrower is not constrained by a fixed redemption date, allowing them to redeem the loan when the business and wider economic conditions make it appropriate, rather than being forced to refinance or sell at a set maturity.

Despite the borrower’s adverse credit profile, Devon & Cornwall Securities said it was able to take a pragmatic view based on the strength of the security and the borrower’s plan to improve the long-term viability of the farm through diversification.

While the lender’s name reflects its roots in the South West, Devon & Cornwall Securities provides finance across England and Wales.

The firm says it continues to see strong demand for flexible funding solutions in the agricultural sector, particularly where borrowers are seeking to restructure debt and reposition rural businesses for future growth.

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