Mortgaging charity land—charity's considerations

Copyright © 2025 LexisNexis
Published by a LexisNexis Property expert
Practice notes

Mortgaging charity land—charity's considerations

Copyright © 2025 LexisNexis

Published by a LexisNexis Property expert

Practice notes
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If a charity is proposing to:

  1. •

    mortgage (or re-mortgage on different terms) property that it owns

  2. •

    acquire property with mortgage finance, or

  3. •

    enter into a charge to secure other obligations

there are a number of issues that the charity trustees must consider. There are also various additional steps that must be taken.

In this context, ‘charity trustees’ means the persons having the general control and management of the administration of a charity (and so, eg will include the directors of a charitable company or the officers of a charitable unincorporated association).

Power to mortgage

The charity must have power to borrow and to mortgage its property as security for that borrowing. Such a power may be expressly set out in the charity’s governing document. If there is no such express power, a sufficient power may arise:

  1. •

    under the Trusts of Land and Appointment of Trustees Act 1996, s 6(8), which gives trustees of land ‘all the powers of an absolute owner’ (this includes the power to borrow money and to secure repayment of it on

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Charity definition
What does Charity mean?

A charity is an institution which is established for charitable purposes only and falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities (Charities Act 2011, s 1)

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