Charity land: overview for selling or leasing your charity鈥檚 land
Updated 7 March 2024
Applies to England and Wales
漏 Crown copyright 2024
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This publication is available at /government/publications/sales-leases-transfers-or-mortgages-what-trustees-need-to-know-about-disposing-of-charity-land-cc28/charity-land-overview-for-selling-or-leasing-your-charitys-land
This overview only focuses on sales and leases of charity land as they are the most common types of charity land disposal.
The aim of this overview is to help you understand which parts of our main guidance on land disposals will be relevant to you. You should read the detail in the main guidance: Charity land: Selling, leasing or otherwise disposing of charity land in England and Wales.
Before you sell or lease charity land, you must be certain that:
- your charity owns the land and
- the sale or lease is in the best interests of your charity
Understand what we mean by the word 鈥榣and鈥� .
Step 1
Check that you have a power to sell or lease the land. Are you able to use a power in your charity鈥檚 governing document or use the power in the law?
Read 鈥楰now if you have the power to dispose of the land鈥� for full details.
Step 2
Check whether you are:
- selling the land or
- granting a lease for more than 7 years or
- granting a lease for 7 years or less with a fine or premium or
- granting a lease for 7 years or less with an option to extend the lease
If you are doing any of these, you must follow these 鈥楲egal requirements for sales and 鈥榣ong鈥� leases鈥�.
If you are granting a lease for 7 years or less without a fine or premium or an option to extend, then you must follow these different 鈥楲egal requirements for 鈥榮hort鈥� leases鈥�
Step 3
Check whether you are selling or leasing land to a connected person.
If the disposal is to a connected person, the requirements are the same whether the transaction is a sale, long lease or short lease. You must get authority from the Commission before you sell or lease the land.
Read 鈥榃hen you must get Charity Commission authority鈥� for full details.
Step 4
Check whether you are selling or leasing designated land.
Read 鈥楧isposing of designated land鈥� for full details.
If you are then there are additional legal requirements you must follow and you may need authority from the Commission.
Step 5
Check whether your sale or lease falls within a list of exemptions. If it does, you may not need to comply with all the legal requirements, for example if:
- your charity is an exempt charity
- the sale or lease is being arranged by a liquidator, provisional liquidator, receiver, mortgagee or administrator
Check 鈥楨xemptions to the legal requirements for sales, leases and other types of disposals鈥�.