EXMOOR artists Pauline Clements and Ian Mawby could be facing the end of their link to a 33-year-old 'dream' business after failing to convince lending companies they are a safe investment.

The couple have spent more than three decades creating Pulhams Mill arts and crafts centre, turning what was literally a ruin into a thriving business that includes a workshop, tearooms and holiday cottage.

But Ian, who celebrated his 72nd birthday this week, has been told by his mortgage company that it will not renew his interest-only mortgage when it runs out in just over a year because he is too old.

Although Pauline is ten years younger, the business would have to be producing an income of around £50,000 for her to take on the £180,000 loan.

"We've tried every other mortgage company in the book and brokers as well but the answer has been the same," said Ian, a 'high end' furniture maker.

"It's just ridiculous because we have about £900,000 of equity in the property.

"Although we have a successful business, we have never made a fortune but we have made a living and like most businesses we have ploughed profits back into developing it."

In desperation the couple put an advertisement in a recent issue of the satirical news and current affairs magazine Private Eye.

It said the banks were forcing the sale of the business and Ian and Pauline, an illustrator and designer, were looking for 260 investors of £1,000 or 2,600 investors of £100. Alternatively, one saviour could take £260,000 of equity.

"I've had a few replies but nothing really concrete," said Ian.

One solution to the problem could be to sell the cottage currently let for holiday use.

But although it would probably be worth a maximum £190,000 with holiday use, the value could increase to £260,000 as a private home.

But under planning conditions, the building is linked to the business.

"Exmoor National park planners have told me that it can't be sold as a permanent home, which is effectively devaluing it," said Ian.

"I do intend to challenge that but it's just another problem to deal with.

"My ideal scenario would be to sell the cottage to another craftsman who would make Pulhams Mill their base, with perhaps the eventual aim of them taking on the whole business.

"We could carry on living above the crafts centre with the knowledge that the business could continue.

"It's a very fluid situation but I know we are going to have to make a decision very soon on whether we just put the whole thing on the market.

"It would be absolutely devastating if we had to leave here - we've built it up from nothing and spent more than 30 years of our lives making it our dream.

"This mill is mentioned in the Domesday Book and we renovated it and gave it life.

"To be told by the banks that you're too old is really hard to take."

A spokesman for the Exmoor National Park Authority told the Free Press: "Planning officers are discussing a range of issues with Mr Mawby's planning agent and it is expected that a planning application will be submitted shortly."

Photo: Steve Guscott