Charity Property Disposals
Understanding Section 119 of the Charities Act
Samantha Johnson
5/27/20263 min read
Property is often one of the most valuable assets a charity owns.
Whether it is an investment property generating income, development land or a building used directly by the charity, trustees have a duty to ensure those assets are managed responsibly and in the best interests of both the charity and its beneficiaries.
One of the key safeguards within charity property law is Section 119 of the Charities Act 2011, which requires trustees to obtain and consider appropriate professional advice before disposing of charity land in most circumstances.
As a Chartered Surveyor specialising in valuation and property advice, I regularly assist clients in understanding the value and potential of their property assets. However, my interest in charity property goes beyond my professional role.
I am also a Trustee of St Petrock and Heavitree Parish Lands Charity, an organisation with a long history of managing property assets for the benefit of the local community. Serving as a trustee has given me a valuable perspective on the responsibilities and challenges trustees face when making decisions involving charity-owned property.
Property Decisions Are About More Than Property
One of the things I have learned as a trustee is that property decisions are rarely just about bricks and mortar.
Trustees must balance a wide range of considerations, including:
Protecting charitable assets.
Generating sustainable income.
Managing risk.
Supporting beneficiaries.
Preserving long-term value.
Demonstrating good governance.
Every decision must be made with the charity's objectives at its heart.
That responsibility can feel significant, particularly where property assets have been held by a charity for many years or where a transaction may have a lasting impact on future generations of beneficiaries.
It is precisely for this reason that the Charities Act includes specific safeguards around the disposal of charity land.
What is Section 119?
Sections 117 to 121 of the Charities Act 2011 provide the legal framework governing the disposal of charity land.
In most cases, before a charity sells property, grants a long lease or otherwise disposes of land, trustees must obtain and consider written advice from a suitably qualified professional. The purpose is to ensure trustees are satisfied that the proposed transaction represents the best terms reasonably obtainable for the charity.
The legislation is designed to protect both charitable assets and trustees themselves by ensuring decisions are informed by independent professional advice.
Why Independent Advice Matters
Having sat in trustee meetings where property matters are discussed, I know that trustees are often experts in many different fields, but not necessarily in property.
That is where professional advice becomes so important.
A properly prepared Section 119 report provides trustees with an independent assessment of:
Market value.
Marketing strategy.
Disposal options.
Factors affecting value.
Whether the proposed terms are appropriate.
Opportunities to enhance value prior to disposal.
The report gives trustees confidence that they have considered all relevant factors before reaching a decision.
Equally importantly, it provides evidence that trustees have fulfilled their legal duties and exercised appropriate care in managing charitable assets.
The Importance of Stewardship
One of the most rewarding aspects of being a trustee is recognising that you are not simply managing assets for today.
You are acting as a steward for future generations.
Many charities have benefited from the foresight and generosity of those who came before us. Property assets often represent decades, and sometimes centuries, of careful management.
Trustees therefore have a responsibility to ensure that any disposal decision supports the long-term interests of the charity rather than simply focusing on short-term outcomes.
That principle aligns closely with my approach as a surveyor. Good property advice is not simply about achieving a transaction. It is about understanding the wider objectives and ensuring decisions are made with confidence and clarity.
How Delaford Can Help
At Delaford Property Consultants, we provide independent advice to charity trustees, solicitors and other professional advisers on:
Section 119 Charities Act Reports
Charity Property Valuations
Leasehold and Freehold Disposals
Investment Property Advice
Development Land
Our advice is founded on professional expertise, independence and an understanding of the governance responsibilities trustees carry.
Having experience both as a Chartered Surveyor and as a trustee, I appreciate the importance of providing advice that is not only technically robust but also practical, understandable and aligned with a charity's objectives.
Supporting Trustees to Make Informed Decisions
The disposal of charity property is often a significant event in the life of a charity.
Obtaining the right advice at an early stage can help trustees navigate the process confidently, fulfil their legal obligations and ensure that charitable assets continue to deliver maximum benefit for the communities and causes they support.
If you require advice on a Section 119 report, charity property valuation or the disposal of charity-owned property, Delaford Property Consultants would be pleased to assist.
People Make Property.
