So how do you establish good property maintenance and long-term strategic planning to ensure your place of worship remains a lasting, visible presence in your community?
Look at the skills you have within your congregation. Find the gaps and identify how to fill them. Get help to update and improve your processes. You must be vigilant, whether looking at health and safety, energy efficiency and sustainability, security, risk management and budgeting.
Also look at governance. Andrew Small, Partner at leading charity solicitors Russell-Cooke is concerned how many faith groups buy property when unincorporated. “Many feel God will provide, but it is important that trustees understand that they are personally liable if their faith community is not incorporated as a CIO or a charity.”
Top ten property tips for faith groups
1. Identify one person responsible for all property matters and define what those matters are. Have a named trustee and/or an officer. Know how and why you use property; its purpose, especially if it has multiple uses.
2. Know whether you own or lease the property. Know your relationship with any central faith body about who does what. Check what your local accountabilities are.
3. Know what your property is: heritage asset (local or national), listed, any covenants, restrictions on use, planning status, etc. Know its monetary value; do you need it for accountancy purposes. Is the property a financial asset or liability?
4. Know where all property papers are e.g. Land Registry title or lease. If lease, know where it is kept and be aware of all its terms and your obligations.
5. Plan for the present and future. Prepare an annual and/or several years budget to include any rent and rates, repair and decoration costs, replacement costs (such as heating source), servicing costs (of building and grounds), waste charges or septic tank maintenance. Know what your spend and income is.
6. Carry out regular inspections, do repairs when identified, do the requisite servicing of the property (such as boiler, electrics, organs, bell tower), check security arrangements, have a cleaning rota, know what items of value (fixtures and fitting) you have, listed with photographs and where they are kept. Inspect the outside grounds, for example the condition of any trees and headstones and regularly inspected, and action taken if not.
7. Ensure you have all the necessary occupation and building certificates such as asbestos surveys, Energy Performance Certificates, gas, electrical, insurance, condition surveys. Keep up-to-date and stored away for easy retrieval.
8. Know your health and safety responsibilities; prepare risk assessments and have them signed off and ensure they to cover all your uses. Know where they are kept. Prepare a policy.
9. Check the right insurance policies are in place. For property, include building cover (material damage), public, employee and volunteer liability, trustees’ cover, business continuity cover amongst others.
10. Put everything in writing; don’t rely on verbal consents. Have clear traceable correspondence. And never assume someone else is doing it.
Often it is central administrations rather than local congregations that own faith buildings, and it is they who take the decision to close. If you fear this could happen to your place of worship, read the Charity Commission’s landmark Imamia Mission ruling, which commercial property lawyers tell me was ground changing, effectively prevents property-owning trustees from selling places of worship from underneath local congregations.
However, the good news if you want to sell your place of worship is that, unlike the rest of the commercial property market, business is booming for F1 class properties (faith and education buildings), particularly those with parking and good transport links. Sadly, church authorities are often persuaded by developers to sell when, if they can welcome another faith or tradition taking over their building, they could achieve well over the asking price.
According to Alex Dawson of Alex Martin Commercial Property a leading specialist in this field, there is a lot of pent-up demand leading to competitive bidding. “Think about four-five key selling points that would attract faith groups. Recently I sold a synagogue in North London that went on the market for £3.5 million and sold for £5.9 million. Two church buildings in East London with over 2,000 sq. feet each are currently selling for £7 million and £8 million and have already attracted over 100 enquiries.”
He advises faith groups keen to buy, however, to dig deep and think long term. “Think about parking and neighbours, think about where you want to be in five, 10, 25 years’ time. Even empty office blocks are finding a new market, as faith groups can find a home perhaps across several floors, drawn by the space and cheap parking.”
We are living through tumultuous times, but shared faith remains a powerful asset. So, for your place of worship to remain a lasting, visible presence for good in your community, do consider that good property maintenance and long-term strategic planning are God’s work too.
Adapted from an article published by Charity Finance Magazine Sept 2021
