Clairvoyance

The case of the Spiritualist Association of Great Britain is a cautionary tale highlighting the pitfalls that lie in the path not only of charities unused to transacting property but also charities that encounter situations out of the ordinary.

The charity in question needed to sell its property in London's Belgrave Square. It did so for £6million: a price that failed to take account of the potential uplift in value if there were change of use. Immediately after acquisition, the buyer sold on for £21million. Not surprisingly, questions were asked as to whether the charity trustees had complied with the requirements of the Charities Act to obtain a report from an independent surveyor confirming that the disposal was on the best terms reasonably obtainable.