Charities Act short leases valuation procedures
Sections 117 to 121 of the Charities Act 2011 stipulate certain requirements that are applicable prior to some disposals of land by registered or excepted charities.
- There is an exceptional procedure for the grant of leases for a term of seven years or less (section 120). In this case, the charity trustees must obtain advice from a person reasonably believed by the trustees to have the requisite ability and practical experience to provide them with competent advice on the proposed disposition. They must then decide whether they are satisfied, having considered that person’s advice that the terms of the disposition are the best that can be obtained for the charity.
- The person advising need not be a qualified surveyor and there are no express stipulations about the advice, which does not even strictly speaking need to be in writing.
- However, there is a degree of practical protection for both the charity trustees and advisers in recording the advice in writing.
- If an adviser does give verbal advice, the adviser should as a matter of good practice confirm this in a letter to the charity trustees.