Charity Act Valuation
Charities must obtain appropriate advice when acquiring or disposing of interest in property from someone who has the ability and experience to do so competently, acting exclusively for the Charity and who will ensure that the Charity can be satisfied that the proposed Terms are the best that can reasonably be obtained.
For acquisition or disposal of an interest for a Term of less than seven years the Charity has some discretion as to who this advice is provided by, the Charity Commission recommends the RICS as one of those professional bodies.
However, where disposal is to be for a Term in excess of seven years a Qualified surveyors report must be obtained which will not only provide a value for the interest to be disposed of but advise on the method by which the interest should be advertised to ensure that the proposed terms are the best that can reasonably be obtained.
A Qualified surveyor would need to be MRICS or FRICS as well as a RICS Registered Valuer. The Charity Commission also recommends that the surveyor should :-
• have considerable experience of the property market in the town or district where the land is situated
• be familiar with the factors which affect the value of the type of property/land within the market
• know which methods of marketing and disposal are most likely to succeed in the market
Failure to follow these requirements will result in an Order from the Charity Commission having to be applied for and achieved before completion of the disposal can occur. This will inevitably extend the time needed for the disposal.
Vickery Holman offer an established knowledge of each local market across the South West which enables its valuers to provide the required advice, acting independently for the Charity and producing reports compliant with the Charities (Qualified Surveyors’ Report) Regulations 1992. We always recommend that Charities engage with the valuer as early as possible to ensure that the intended action occurs efficiently and to the best possible gain.