Under the Charities Act 2011, trustees are obligated to obtain a written report from a qualified surveyor before disposing of any property. This requirement is designed to ensure that the charity receives the best possible terms for the transaction, thereby maximising the value of their assets.
We were informed by the Charity that the property had been sold by way of an off-market transaction. The property had not been marketed and the Trustees had made the decision to sell based on a fair offer received from the purchaser.
One of the primary purposes of a Charities Act Valuation is to ascertain the market value of the property. This valuation considers various factors, including current market conditions, the property’s condition, and comparable transactions in the area. After researching comparable evidence nearby and understanding the market, we were able to advice on the recommended Market Value of the property.
We would usually advise that a Private Treaty sale would be considered the best route to market a property of this nature, as it gives maximum market exposure to generate the greatest level of purchaser interest in the property and ensure that the terms on which it is disposed of are the best that can reasonably be obtained for the Charity. However, due to the poor condition of the property, we established that the Market Value would be below that of the offer accepted by the purchaser.
Considering that the Charity had accepted an off-market offer that exceeds the anticipated market value, we recommended that proceeding with the off-market sale was in the best interest of the Charity.
Our experienced team is ready to assist with unparalleled regional advice.
