Charitable implications of a corporate charity granting a mortgage over property

We advised an incorporated charity on the charitable elements involved in the financing of a property purchase to house its growing operation and to provide additional space for its youth work.

We advised on the particular charitable implications where a charity mortgages land and provided a legal opinion to the lending bank in relation to the charity’s capacity to enter into a legal mortgage in favour of the lender. This involved advising on the requirements of Part 7 of the Charities Act 2011 regarding entry by a charity into dispositions (mortgages) of land. We provided resolutions for the board minutes approving the facility and mortgage.