Demand for Charity Act rent valuation reports is increasing as more charities approach commercial lease renewals in a challenging property market.
Where a charity is granting or renewing a lease of charity-owned property, a formal report which complies with the requirements of the Charities Act 2011, as amended by the Charities Act 2022, must be provided by a commercial surveyor with RICS qualifications. The report helps trustees assess whether the proposed rent and other key terms represent the best terms reasonably obtainable for the charity in the current market, having had regard to relevant market evidence.
When to Commission a Charity Lease Valuation
Even where a report is not strictly required—such as when a charity is renewing a lease as a tenant—independent rental advice can support good governance. It enables trustees to understand current market rent, identify potentially onerous terms and demonstrate that the decision is in the charity’s best interests.
As Lease Advisory surveyors, we would always recommend that charity clients seek to commission a valuation well before the renewal deadline as this gives trustees time to consider the evidence obtained and advice provided prior to entering into negotiations.
Supporting Charities’ Property Planning
We have found that Charity Act rent valuation reports are becoming an increasingly important part of charities’ property planning, helping trustees manage risk, fulfil their duties and secure appropriate commercial terms.
If you would like advice on Charity Act rent valuation reports or lease renewals, contact a member of Vickery Holman’s Lease Advisory team today.
