The Charity Commission is investigating over 700 tenancy agreements entered into by charities where the property is, or appears to be, empty. The Commission is aware that landlords have approached some charities, and some charities are actively marketing their willingness, to enter into tenancy agreements of hard to let property, thereby relieving landlords of the requirement to pay full business rates.
The Commission has warned charity trustees about the potential risks if they have not followed a proper and reasonable decision making process before entering into tenancy agreements for empty premises and if their charity does not physically occupy the premises.
Charities should be aware of the Commission’s investigation and consider the legal, financial and reputation risks should local authorities or the Commission challenge individual arrangements.
Should you have a charity law matter you wish to discuss please contact our Beeston office on 0115 922 1591.
