Disposal of Land by Charities – Updated Guidance and Leases

The Charities Act 2022 brought in significant reforms to a number of areas of charity law. One intention of the Act was to make the process of disposing of land easier for charities. The Act aims to give greater flexibility, remove certain prescriptive requirements, and make the legal framework for disposing of charity property clearer and less burdensome. 

Most provisions of the Act relating to dealings with charity land were implemented on 14 June 2023 and (apart from a few very minor provisions yet to be brought into effect) the remainder were brought into effect on 7 March 2024 by means of Regulations. 

The law relating to disposal of land by charities is dealt with in the updated Guidance Notes: Charity Property Transactions.

Below is a list of the key changes from the Act that impact disposal of land by charities:

• Advertising and report requirements for the disposition of charity land.
• Statements to be included in documents on sale of freehold or grant of lease or mortgage.
• Amendments to the restriction on disposals and the exceptions to the restriction.
• Residential tenancies granted to employees.

For more detail on these changes please read here.

The following property templates have been updated in accordance with the changes and the updated versions should now be used: 

• Lease to Charity of Office in Shared Building 
• Lease to Charity of Office over Shop 
• Underlease of Part of Office Premises Granted By Charity.