Great Harwood: Churchfield House leased for 25 years to community group

On 29th July 2015, Cabinet approved the disposal by 25 year lease of Churchfield House, Great Harwood, to Churchfield House Ltd.

The Council is trustee of Churchfield.  The Council is subject to a legal duty to act in the best interest of the charity at all times.  On the 30^th July 2014 Cabinet authorised a short term lease of Churchfield House, not exceeding 24 months, to Churchfield House Ltd.

Churchfield House has been significantly underused for many years.  Prior to the short term lease to CFH Ltd the building has only been used for approximately 22 hours per month. 

The purpose of the short term lease was to permit Churchfield House Ltd. the opportunity of managing the building for a limited period of time, and to prepare a sustainable business plan for the building’s long term management and usage.  A business plan has been prepared by Churchfield House Ltd and is appended to the Cabinet report.  The Business Plan shows that income generated through community based activities, and some commercial letting of office space on the first floor, will enable the operation of the building to become sustainable.

The Charities Act 2011 does not permit any part of the building to be leased for a period of greater than 2 years without obtaining a scheme or an order from the Charity Commission.  The issue of a lease by the Council is therefore dependant on the Council obtaining a scheme or an order from the Charity Commission.

The terms of the proposed lease appear to be the best that can reasonably be obtained. The Council has obtained an independent valuation of Churchfield House from Taylor Weaver.  Cabinet will note that this concludes that the proposed peppercorn rent represents market value for the property subject to a requirement for community usage in accordance with the charitable bequest.

In order to satisfy its obligations as charity trustee, the Council has completed an extensive public consultation in Great Harwood.  Churchfield House Ltd. has also completed its own separate consultation, which received 160 positive responses to the proposed lease.  No negative responses were received during either of the consultations.