The Friends of the Babbacombe Cliff Railway (FBCR) was set up in 2005 as a response to rumours that the Cliff railway was to close; an investment of over £500,000 to bring it in line with current regulations. This sum was eventually found from the sale of St Marychurch Town Hall and a complete refurbishment of the mechanical parts was carried out in the winters of 2005 and 2006.
Despite a previous failed attempt to sell the railway, the FBCR was asked if they would become responsible for the operation and negotiations began in 2006. These proceeded well and by September a draft lease had been prepared. At the same time various other organisations were consulted about the most suitable structure for the organisation that was to run the railway. The Consensus was to register the FBCR as a charity and to set up a Community Interest Company to carry out the running of the attraction. The Company was in set up in March 2008 and the takeover of the railway took place on 1 August 2009.