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The big questions that funders will want you to answer

If you're applying for certain types of funding, then you'll need security of tenure for your land and facilities. 

This applies to public funding for any land or building project. It includes Lottery funding from Sport England. 

You will be asked to demonstrate that you have, or intend to have, security of tenure for the land and/or facilities that you want to develop. 

That's because funders want to ensure that their investment will have a long-lasting impact. They're trying to find out how long you can stay at your site or facility.

Here are some of the big questions that you'll need to answer...

Do you have security of tenure?

You'll need to know if your organisation has the security of tenure for the land or facilities that you want to use. This means you should have the freehold or a lease. 

Funding applications must come from the organisation or individual(s) with the legal right to use the site or property. That's whoever owns the site or holds the lease. 

For example, if you use a school’s playing field, and the funding is for that facility, then whoever owns the school’s site would need to be the applicant.

Whose name is on the lease or freehold?

The name on the lease or freehold must match the name on your governing documents and funding application.

For legal reasons, some organisations won’t be able to hold land in their own name. Instead, it could be in the name of your trustees. If this is the case, check that the named trustees are still alive and involved with the organisation.

If they are not, you'll need to update your documents. 

Is the lease long enough?

If you lease the venue that you want funding for, then you'll be asked how long is left on your lease. 

Funders will want to know if this meets their criteria for their investment.

If your lease does not meet the minimum terms, you may need to extend your lease to be eligible.

Funders typically look for: 

  • Minimum of a seven-year lease, from the completion date of your project, for awards up to £50,000. 

  • Minimum of a 10-year lease, from the completion date of your project, for awards of between £50,000 - £99,999. 

  • Minimum lease requirements for awards of £100,000 or more may vary depending on the funder. 

Does the security of tenure cover the site you want funding for?  

Does your security of tenure cover the area that you want the investment for?

The funders will want to ensure that the boundaries covered by the documents include the land or facility that you want their investment for. 

Does the lease include break clauses?

Sometimes leases contain “break clauses”. These can allow either the landlord or the tenant to end the lease for one or more reasons. These reasons are agreed when the lease is drawn up. 

Funders need to be reassured that your organisation cannot be removed from the site before the end of the lease. They need to see that their investment will be secure. 

Could other clauses impact on your security?

Funders will be looking out for a number of clauses that could impact on the security of tenure.

These include the following... ​​​​​​

 

Scheduled rent reviews
This is where the landlord can change the rent amount charged.

Any rent increases could impact on your group's future and the project's viability. 

Clauses allowing the property to be assigned elsewhere
A clause could allow your organisation or the landlord to assign all or part of the property to another party.

If this happens, your organisation might no longer be the tenant. 
Sub-letting
They'll be looking out for clauses that allow any of the property or grounds to be sub-let, either by your organisation or by the landlord.

If this happens, your organisation would still be a tenant but would have to share the property. 
Restrictive clauses
They'll be checking for clauses that restrict anything the funder might want to add as a condition of their investment.

For example, some funders request a legal charge on the land covered by your lease, which means that they have some say in what happens if something goes wrong.

However, your lease may have a clause disallowing charges, which may need to be reviewed with the landlord or landowner. 
Permitted use clauses
These clauses specify particular uses of the property or grounds.

This might prevent you from using the site or property for the purpose you intend.