At Trethowans, our team of specialist charity lawyers has extensive experience advising charities on property matters. We understand the unique challenges charities face when dealing with land transactions and are here to help you navigate the complexities of the Charities Act 2011, as updated by the Charities Act 2022.

Whether you’re managing property for a local community group or a national charitable organisation, our team offers tailored advice to ensure compliance with legal requirements while protecting your charity’s interests.

Property matters affecting charities

We regularly assist with a wide range of property matters affecting charities, including:

  • Disposing of charity property;
  • Compliance with the Charities Act requirements on dispositions;
  • Transfer of charity property on incorporation or merger;
  • Mortgages of charity property;
  • Development of charity property;
  • Property disputes involving charity property;
  • Property matters on academy conversions (including leases with Local Authorities, land arrangements with Diocesan Authorities and Foundation bodies, and short term lease and other arrangements)
  • Acquiring property for a charity

Key requirements for charity property transactions

Some of the key requirements to consider when dealing with charity property include:

  • Powers: Trustees must ensure the charity has the relevant power to undertake the proposed action, and that there is not anything within the charity’s constitution to limit those powers.
  • Designated Advisor’s report: Most land dispositions (excluding leases less than seven years) require a written report from a designated advisor, as per the requirements of the Charities Act (previously this requirement was for a qualified surveyor’s report).
  • Statements within the documentation: The Charities Act sets out specific statements that need to be included within the legal documents effecting a disposition. HM Land Registry will require the prescribed statements, which accord with the Charities Act, to be included, and may reject the registration application if these are not correct.
  • Mortgages: There are requirements within the Charities Act that need to be adhered to when mortgaging charity land.
  • Execution of documents: The structure of a charity determines its signing requirements which will need to be determined and followed. If all trustees are required to sign (for example with an unincorporated charity), the trustees could pass a section 333 resolution to enable two of the trustees to sign on their behalf which can assist with the administration of the signing.
  • Tax implications: Consider whether SDLT will be payable and/or if a SDLT return claiming relief needs to be made. If the property is to be wholly or mainly occupied for charitable purposes the charity may be entitle to a reduction in rates.
  • Charity Commission consent: Consider whether the consent of the Charity Commission (or other regulatory body if applicable) may be required. This will depend on the specific circumstances of the proposed transaction. The majority of charity property dealings can be dealt with through compliance with the Charities Act requirements however there are some situations where additional consent will be required (for example, disposition to a ‘connected person’ or disposition involving permanent endowment).

Why choose Trethowans?

Our charity lawyers have the experience and knowledge to understand the complexities of charity property transactions. Our wider charities practice means that we have charity experts in different teams which enables us to advise charities on a wide spectrum of legal matters with the knowledge and understanding of a charity’s specific legal needs.

To get in touch with one of our specialist charity lawyers please give us a call or contact us using our enquiry form and we will be happy to help.

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