Charities Act Valuation

Savvy_Sue

As I mentioned elsewhere, the charity DH works for is looking to re-locate to bigger premises. At the moment, there are quite a few pubs on the market, in the right area, which would enable them to do what they do - run a cafe with advice and befriending service, plus offer training courses.

They are looking into getting a Charities Act valuation done and have someone lined up who could do this, when asked. But they need to clarify the basis of valuation - assuming it was a pub, would they want it valued as a pub (not likely to be much in the current climate) or for the purposes for which they wanted it?

Can anyone advise on this point?

fengirl_2

Is this to purchase or lease?
I have only heard of havng a Charities Act valuation when a charity is considering leasing out all or part of a premises it already owns with the aim of ensuring it is obtaining the full market value.
I expect you have seen this leaflet:
http://www.charitycommission.gov.uk/publications/cc33.asp

Errata

Sue, not sure if this will help but here goes. About 5 years ago a Yorkshire MIND bought a pub on a mortgage to use in the way you describe. I have no idea how it was valued but common sense tells me that in the normal run of things (!) a pub would be valued at a higher price than a cafe + etc.

Savvy_Sue

fengirl wrote: »

Is this to purchase or lease?
I have only heard of havng a Charities Act valuation when a charity is considering leasing out all or part of a premises it already owns with the aim of ensuring it is obtaining the full market value.

It's purchase.

DH hasn't heard of this either, it's his Chair of Trustees talking about a Charity Valuation.

fengirl wrote: »

I expect you have seen this leaflet:
http://www.charitycommission.gov.uk/publications/cc33.asp

Not me personally but I shall point DH to it ...

And thanks Errata, I agree that in the normal run of things ... but nothing's 'normal' atm, and we were shocked a) at the number of pubs being sold at the auction we went to the other day and b) at the prices they were NOT reaching.

Many of the properties at this auction had had their Guide Price lowered, quite significantly in most cases. For some reason, the one DH might be interested in had its Guide Price raised, again quite significantly! There was only one bidder, it didn't reach its reserve, and from what was said I don't think it got near its reserve, but the bid offered was quite a bit more than DH's trustees would consider paying, given the amount of work it needs.

If it goes quiet, it's because we're on holiday.

fengirl_2

I dealt with many applications to purchase properties hen I worked for the Lottery and never heard of such a thing.
Page 791 of the Voluntary Sector Legal Handbook covers auctions, but the rules are no different to anyone buying at auction, eg do your homework before bidding as a winning bid is binding.
I hope the organisation is incorporated!

Savvy_Sue

As in also a limited company? Yes, it is.

Thanks for the advice. Much appreciated.