Voluntary and community organisations can use asset transfer as part of a strategy to secure the long-term future of their services. Owning land or buildings can provide the basis on which to borrow money or to develop new income generating activities.

Asset transfer is a complex process and should not be entered into lightly. Many of the buildings local authorities are happy to dispose of – such as old school buildings - are old, in poor condition, don’t meet current standards and are expensive to maintain and run. Such assets can quickly become liabilities if plans to develop them don’t come off. But there are success stories in many neighbourhoods across the UK. Key factors to consider include the cost of refurbishing the property and whether there will be the income and the skills-base to manage and develop it.

Before considering asset transfer, an initial feasibility study should be carried out by suitably qualified people. This needs to consider: 

• the revenue earning potential for the proposed use of the land or building versus its likely running costs
• the impact of any legal restrictions, either already on the asset or imposed through the funding agreement, mortgage or transfer or lease agreement
• whether there is potential for capital subsidy to improve or develop the asset, such as the £30 million Community Assets Fund
• a structural survey and initial quantity surveyor’s costings for any works needed
• how the proposed transfer contributes to the organisation’s aims and an assessment of any wider community benefit

A lot of initial feasibility studies fall short of providing sufficiently detailed information to base decisions on, and it is worth doing your homework before appointing someone to carry one out.