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4. A sale agreement
The simplest deal is a straight unconditional sale. Here there are no conditions and any hope value for future planning uplift will have to be factored into the price. The simplest and most certain in terms of obtaining capital sum but also likely to generate the lowest overall.
5. Sales of 999 year leases
There are usually to retain control over use types and users, or to ensure a cross obligation re periodic payments sometimes helpful if the charity is retaining land next door or has reason for the use or user controls - but usually have an impact on value and range of buyer.
6. Promotionagreementsandcollaborationagreements
These are arrangements where charities look to work with other parties/ developers to a joint enhancement/scheme for the development of land. Again, matters where the charity trading issues need to be kept in mind and also to be sure of experienced advice.
7. Own development
Perhaps the last thing to comment on is the thought of whether the charity seeks to carry out a development of land itself with a view to retaining the pro t.
Here, the starting point is to observe that property development is not a straightforward thing and can easily make loss as well as pro t and most charities do not have expertise of property developers.
Secondly, property development for pro t is not a charitable activity and must be carried out via a trading subsidiary at arm’s length if it is to be pursued.
This brings with it all sorts of implications such as on governance, con ict of interest, tax, administration/regulation, and nancing. It also needs to answer the basic question of whether the money invested might be better invested in something else, given that this is about investment to generate return for mission.
The level of distraction from core mission that such schemes can generate should also not be underestimated.
So once again, very careful consideration is needed if such ideas are being considered and early advice is recommended.
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