Charities Act Valuation: Advising on the Disposal of Charity Owned Property in the Best Interest of The Charity
Under the Charities Act 2011, trustees are required to obtain a written report from a qualified surveyor before disposing of any property. This ensures the charity receives the best possible terms for the transaction, thereby maximising the value of their assets.
A charity approached us after selling the property through an off-market transaction. The property had not been marketed, and the trustees decided to sell based on a fair offer received from the purchaser.
The primary purpose of a Charities Act Valuation is to ascertain the market value of the property. This involves assessing current market conditions, the property’s condition, and comparable transactions in the area. After conducting thorough research and understanding the market, we provided an informed recommendation on the property’s market value.
Typically, we recommend a private treaty sale for properties of this nature, as it offers maximum market exposure and attracts the greatest level of purchaser interest. This approach ensures that the terms of the sale are the best that can reasonably be obtained for the charity. However, in this case, the property’s poor condition led us to determine that its market value would be below the offer accepted by the purchaser.
Given the charity accepted an off-market offer exceeding the anticipated market value, we recommended proceeding with the off-market sale as it was in the best interest of the charity.
This recent Charities Act Valuation project highlights our commitment to providing expert advice and ensuring the best outcomes for our clients. By conducting thorough valuations and understanding market dynamics, we help charities navigate decisions and maximise the value of their assets.
