How Do I Sell a Building for religious occupation – School – Day Nursery

Frequently Asked Questions

How do I sell a building for religious occupation?
How do I sell a Day Nursery?
How do I sell a School?

 

STARTING THE PROCESS:

How do I go about selling a D1 building currently used for religious occupation such as a Church, Mosque, Temple, Synagogue,etc. Day Nursery, School or Medical/Dental properties or other D1 uses.

The first things that you should do are to ensure that you:-

– Have mandates from your organisation or members to sell or let your property, if required.
– Have all the necessary documentation regarding your existing property readily available.
– Have a firm of solicitors that can handle your affairs.
– Consider if you have somewhere to move to.
– Check if your existing property is leasehold, can you assign (transfer) or sublet your property.
– Have instructed a suitable company to handle the sale or letting.
– Check if you are moving to new premises, that you have the necessary funding arranged.

This list is given as an initial guide. Much will depend upon the individual circumstances which apply to your own situation.

 

Is your preference to sell or to rent out your current property?

Much will depend upon the current state of your finances. If you can buy a new building without having to sell your existing property then you can opt to retain this and create an income stream by letting rather than selling.

If you have some funds available for your new building, but not the full amount, you can seek to raise the balance externally to buy your new property and let your existing building. The rent received from the letting of the existing property could off-set or pay towards the borrowing costs of the funding.

Finding funding from a suitable source should be considered very carefully. Bernard Gordon & Co is not a financial advisor and therefore cannot provide information in this regard. You should seek advice from your existing bankers, independent financial advisors or from specialist funders for religious organisations.

You should also obtain specialist tax advice concerning funding generally in relation to your transaction.

 

Budgets

If you are buying a property you will need to set a budget. This will largely be determined by how much cash you have in your reserves, how much your present property is worth, how much you can raise from your community/benefactors and if necessary how much you can borrow from external financial organisations. It is very important that you set a realistic budget given that you can waste an awful lot of time, effort and money in trying to secure a property which results in an abortive purchase due to lack of sufficient funds.

The same philosophy should also apply when leasing. Don’t take on more than you can afford to pay. Please remember that in addition to the rent and the cost of complying with the other obligations provided in the lease, you will have to pay rates, service charges and vat if they are applicable.

You will need to include within your budgeting additional professional costs for solicitors and surveyors. Some properties are registered for VAT and attract VAT on sale prices and rents. You will have to pay stamp duty land tax assuming the rent level /purchase price is high enough to exceed the relevant threshold. Additionally you should also budget for moving costs, furniture, furnishings, specialist fixtures and fittings, building works, repairs, signage etc. There may be other costs in addition.

For solicitors and surveyors fees please ask for quotations. For questions relating to VAT always seek advice from your accountant or VAT specialist advisor.

 

Solicitors

Do you have all the necessary documentation regarding your existing property to give to your solicitors? Over time the location of important documents get lost or mislaid. Pre sale preparation should allow you to locate them or alternatively deal with problems arising out of their being mislaid. Similarly if your organisation requires documents to be signed by specific members/trustees, you should consider if they are still available to sign and / or approve such documents.

Do you have a firm of solicitors that handle your affairs? If you require any recommendations we will be very happy to provide names of various firms who you can contact.

If you wish to move matters along quickly you should engage a solicitor at an early stage preferably before it is marketed as your solicitor, in addition to getting papers together, should check to anticipate any likely issues affecting the transaction.

 

Who would be appropriate to act on our behalf?

Bernard Gordon & Company specialises in all aspects of D1 and D2 properties. We have been established since 1994 and accordingly are well placed to deal with all properties within the scope of our experience. Where we asked to advise on a property that we think may be better dealt with by another specialist company we will advise you accordingly.

 

Where do I go to for initial advice as to:-

How to sell a church?
How to sell a school?
How to sell a day nursery?

Within Central and Greater London extending to the M25 our company can provide initial advice without any obligations. We can now undertake instructions throughoutthe South East of England. This will include an initial internal inspection of the property following which, subject to all the relevant information being available, we will advise as to the demand, saleability and we will provide you with recommended asking price or rent level. Please note that this advice will be a recommendation only and will be given verbally. If you require a formal written valuation we can recommend various independent valuers to undertake this work with whom we will place you in touch and you will then agree formal instructions and fee arrangements directly with them.

Additionally we will not advise you in relation to any physical building issues affecting your property which may affect the sale price / rent you could charge. We can recommend building surveyors who could carry out this service for you.

How do I sell a Church, Day Nursery or School outside of our specialist areas?

Please call and we will let you know if this is a property that can we assist you with or alternatively if we can make a recommendation to whom you should approach.

 

 

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