Selling or leasing charity-owned property can involve more than simply agreeing a deal. In some circumstances, charities must obtain professional advice before a transaction can proceed. Understanding the requirements at an early stage can help charity trustees avoid delays and ensure they are acting in the best interests of their charity.
What is a Charities Act Designated Adviser Report?
A Designated Advisor Report (DAR) is a specialist report that charities may need before disposing of land or property.
Unlike a standard valuation report, a Designated Adviser Report provides wider advice to help trustees make informed decisions and secure the best terms reasonably obtainable for the charity. As part of the report, the adviser will consider matters such as the property’s value, whether it should be marketed and whether there are any steps that could help maximise value prior to disposal.
When is a Designated Adviser Report Required?
A Designated Adviser Report may be required when a charity is disposing of land or property under the requirements of the Charities Act. This can include:
- Selling freehold land or property
- Granting a lease where a premium or other consideration is payable
- Granting or releasing certain rights, easements or restrictive covenants
- Granting or releasing a wayleave
- Granting an option to purchase or lease charity land
- Other forms of disposal falling within the relevant Charities Act requirements
The exact requirements will depend on the nature of the transaction, and there are exemptions in certain circumstances. Seeking professional advice before terms are agreed can help trustees understand their obligations and avoid unnecessary complications later in the process.
Why is Professional Advice Important for Charity Property Disposals?
Property is often one of a charity’s most valuable assets. Charity trustees have a duty to ensure disposals are properly considered and that the charity’s interests are protected.
Obtaining professional advice can help trustees understand the value of the asset, consider the most appropriate disposal strategy and demonstrate that reasonable steps have been taken to secure the best outcome for the charity.
How Lea Hough Can Help
Lea Hough’s Chartered Surveyors and RICS Registered Valuers advise charities, trustees and professional advisers on charity property disposals across Lancashire, Cumbria, Greater Manchester, Merseyside and the wider North West.
As Chartered Surveyors and RICS Registered Valuers, we can provide Designated Adviser Reports in accordance with the requirements of the Charities Act 2011 (as amended by the Charities Act 2022) and the Charities (Dispositions of Land: Designated Advisers and Report) Regulations 2023.
Our experienced valuation team can advise on whether a Designated Adviser Report may be required and prepare reports in accordance with the relevant legislative requirements. We regularly advise on commercial property, development land, residential property and community buildings, helping charities from the early stages of a proposed disposal through to completion of the transaction.
Contact Lea Hough
If your charity is considering selling, leasing or otherwise disposing of land or property across Lancashire, Cumbria, Greater Manchester, Merseyside and the wider North West, Lea Hough’s Chartered Surveyors and RICS Registered Valuers can provide Designated Adviser Reports and professional advice to help trustees meet their obligations and make informed decisions.
Get in touch today to discuss your requirements.
