Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Running a charity brings a long list of responsibilities, and property decisions sit near the top. Whenever a charity becomes a landlord, even for a short tenancy, trustees step into a regulated process that can catch people out. The rules in the Charities Act 2011 treat the grant of a lease as a disposal of charity property, which means specific checks have to happen before the paperwork is signed.
This applies whether the tenancy runs for decades or just a few months, and it applies whether the property is a shopfront, an office, or a residential flat held as an investment. This guide walks trustees through what the law expects, where the thresholds sit, and the practical steps that keep a letting on the right side of the Act.
What this document is
A lease granted by a charity is not a simple commercial decision. Under the Charities Act 2011, it is treated as a disposal of the charity's land, which triggers statutory duties on the trustees before the lease can be completed. The purpose of these rules is to protect charitable assets, making sure trustees have tested the market and taken proper input before committing the charity to tenancy terms that could run for years.
The depth of the process depends on the length of the lease. A long lease of seven years or more attracts a more formal set of obligations, including a written report from a qualified surveyor. Shorter lettings, including most assured shorthold tenancies, still require advice but the process is lighter.
Either way, trustees cannot simply accept the first offer or rely on goodwill. They must be able to show they have reached a properly informed view that the terms are the best the charity could reasonably achieve. These duties sit alongside the charity's governing document, which may add further restrictions on what trustees can and cannot do with the property.
How to use this document
Check the governing document first. Before anything else, trustees should read the charity's trust deed, constitution or articles. Some governing documents limit the types of property dealings permitted or require specific consents. If a restriction applies, the statutory process under the Act is not enough on its own.
Work out which regime applies. The length of the proposed lease decides the path. A lease of seven years or more sits in the fuller regime requiring a qualified surveyor's written report. A lease under seven years, including most ASTs, falls into the lighter regime where advice from an appropriate person is enough. Getting this classification right shapes everything that follows.
Obtain the right advice in the right form. For longer leases, trustees need a written report from a RICS-qualified surveyor with relevant experience of the type of property and letting involved. For shorter lettings, the adviser does not need to be a chartered surveyor and the advice does not need to be written, though a note on file is sensible evidence of the process.
Consider marketing the property. The surveyor may recommend advertising the letting to test the market. Trustees should weigh this seriously, though in straightforward cases it may not add value for the charity. The key point is that the decision on marketing should be a conscious one, recorded in the trustees' minutes rather than assumed.
Reach a reasoned decision and record it. After reviewing the report or advice, trustees must be satisfied that the lease terms are the best that can reasonably be obtained. This decision belongs to the trustees, not the surveyor. Minute the discussion, the factors weighed, and the conclusion so there is a clear audit trail if questions arise later.
Q Does the Charities Act 2011 really cover short tenancies?
Yes. The Act treats the grant of a lease as a disposal of charity land, and there is no lower threshold that exempts short tenancies. Assured shorthold tenancies of six or twelve months still fall within the rules. The process is lighter for leases under seven years, but trustees still have to take appropriate advice and satisfy themselves the terms are reasonable before granting the tenancy.
Q Who counts as a qualified surveyor for the written report?
The Act requires a fellow or professional associate of the Royal Institution of Chartered Surveyors (RICS) who has experience relevant to the property and the proposed letting. A general RICS membership is not automatically enough on its own. Trustees should check that the surveyor's background genuinely fits the type of land and tenancy involved, for example residential lettings, retail units, or agricultural holdings.
Q What is a Charities Act statement and where does it go?
It is a statement included in the lease confirming that the land is held by or in trust for a charity and that the required statutory steps have been followed. The wording differs depending on whether the charity is exempt and whether Charity Commission consent was needed. Leaving the statement out or getting it wrong can create problems when the lease is registered at HM Land Registry.
Q Do we always need Charity Commission consent to grant a lease?
Not usually. If trustees follow the statutory process correctly and the lease is not to a connected party, Commission consent is generally not required. Consent is more commonly needed where the proposed tenant is a trustee, a person connected to a trustee, or where the governing document specifically requires it. In those situations, advance approval should be built into the timeline.
Q What happens if trustees grant a lease without following these steps?
A lease granted in breach of the statutory requirements can be challenged and may be unenforceable in certain circumstances. Trustees could also face personal questions about whether they acted in line with their duties. HM Land Registry may raise requisitions if the required statements are missing. Putting things right after the event is usually more expensive and slower than doing it properly at the outset.
Q Can trustees rely on a letting agent instead of a surveyor?
For leases under seven years, advice from an appropriate person can come from someone with relevant knowledge and experience, which might include an experienced letting agent for a standard residential tenancy. For leases of seven years or more, the Act specifically requires a qualified RICS surveyor's written report. A letting agent's opinion will not satisfy that requirement on its own.
Granting a lease as a charity trustee carries statutory duties that are easy to miss, and the steps differ depending on the length and type of tenancy. An experienced legal adviser can talk through your proposed letting on the phone and help you think through what the Charities Act process looks like based on what you describe.
✓Plain-English answers to your specific questions about the lease you are considering
✓Practical perspective on whether the seven-year threshold and surveyor rules apply to your situation
✓A clearer sense of what to watch out for before trustees sign
✓Guidance tailored to what you describe about the charity and the property
Personal call · For information only · Independent advisers
Written & reviewed by
Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.
