Pastoral Measure Code of Practice December 2009 SECTION 16 - TRANSFER OF THE PROPERTY This section outlines the procedure for dealing with the disposal of a closed church building and/or site, highlighting in particular the inclusion of covenants in any conveyance/ lease as a means of protecting the Church's continuing interest in the property. 16.1 - 16.6 16.1 - 16.2 16.3 16.4 16.5 - 16.6 Covenants Purpose of covenants Enforcement Covenants applicable on disposal of a closed church building Covenants applicable to the cleared site of a demolished closed church building 16.7 - 16.9 16.7 - 16.8 16.8A 16.9 Sale Proceeds and Lease Premiums Under Section 52 Costs allowable against sale proceeds Under Section 46 16.10 - 16.15 Disposal of Sites 16.10-16.11 General 16.12-16.13 Disposal of sites of churches demolished otherwise than under Part III of the Measure 16.14-16.15 Application of sale proceeds Pastoral Measure Code of Practice December 2009 Covenants In disposing of a church building closed for regular public worship for a suitable alternative use the Commissioners/DBF include a covenant to uphold the authorised use for the property. Other covenants protect against, inter alia, unauthorised structural alterations or disturbance of human remains or tombstones, monuments and memorials. Such covenants remain in force irrespective of changes in ownership of the property Purpose of covenants 16.1 Most closed church buildings will still look like churches and be associated by the public with their past even when they are used for other purposes. Covenants are included in any conveyance or lease to: uphold and support the authorised use (and prevent undesirable uses) protect the church building/site reassure local people and provide for access to tend graves at agreed time prevent unauthorised demolition or alterations to the fabric retain potential interest, in certain circumstances, in case of a more profitable future use. The imposition of covenants is in both the public and the Church's interest. 16.2 In any provisional negotiations for sale or lease the diocese or its agents should, at an early stage, make clear to a prospective user the extent and nature of the covenants likely to be imposed. Failure to do so could lead the prospective user to reconsider his intentions at an advanced stage in proceedings or significantly delay bringing a sale or lease to completion. Enforcement 16.3 Section 62 provides that these covenants are enforceable as though the Commissioners or the DBF are the owners of adjacent land and the covenants are for the benefit of that land, and also as if covenants of a positive character are negative. Accordingly, covenants imposed on a freehold disposal under the Measure will be shown in the Charges Register relating to the title and will bind future owners of the property concerned. Unlike other restrictive covenants relating to land, they cannot (under express provision in the Measure) be varied or released on an application to the Lands Tribunal: this gives them unusual effectiveness. Covenants applicable on disposal of a closed church building 16.4 The recommended wording for standard covenants is provided in the summary at the end of this sub-section. A brief explanatory note including where each is applicable is provided below: Pastoral Measure Code of Practice (a) December 2009 The user covenant The scheme provides for appropriation to a use which is specified or generally described. A restrictive covenant to ensure compliance with this provision and for ancillary matters must be included in leases and conveyances of church buildings closed for regular public worship. It should follow precisely the user clause in the scheme but, where the clause is capable of wide interpretation (e.g. "civic, cultural or community purposes"), it may be appropriate to include additional provision, either by prohibiting the use of the building for specified purposes, or by providing for any particular use to be previously agreed by the bishop. (b) No illegal, immoral or offensive use This prevents the property being used for any use that may be illegal, immoral or offensive to the principles and practice of the Christian faith. In light of the implications of the Human Rights Act 1998, Counsel advised that, in order to provide an acceptable level of objectivity, a group of people should be given the role of forming an opinion on whether uses were offensive to the Christian faith. The Commissioners have determined that the group should comprise the diocesan bishop, the dean of the Cathedral and the Archdeacon of the area in which the property is situated. A majority of two to one will be decisive. (c) The non-demolition covenant This prevents the owner, once he has acquired the building, from nullifying the use by demolition. (Where architectural alterations have been approved by the Commissioners, such approval will usually be regarded as permitting demolition to the extent necessary to carry out the alterations, provided that these are carried out in accordance with the approved plans). Approval is additional to listed building consent where required. Part of the purpose of the covenant is that it also gives the Church an opportunity in return for lifting the covenant in appropriate circumstances to seek a share of any increased value a cleared site may have over the sale price for the building. (d) Non-disturbance of human remains This covenant is essential where there are burials within the property to be disposed of and the MoJ has made an order dispensing with the requirement to remove the human remains. (e) Erection of a notice board This draws the attention of members of the public to the change of use and the fact that the building is no longer a public place of worship. In view of the characteristic appearance of most church buildings, the new use should be clearly and conspicuously indicated. The notice should be of a size and in a position appropriate to the building. The wording provided on the board should include details of the new and former use together with any Pastoral Measure Code of Practice December 2009 arrangements agreed for public access to the building and/or former churchyard. (f) The repair covenant This seeks to ensure the preservation of the building in a reasonable state of repair. The period of 6 months is a suggested maximum although this can be increased as appropriate. More detailed clauses may be included in a lease to ensure the future upkeep of the building to whatever standard is judged appropriate, but stringent covenants are only likely to be of value if effective arrangements can be made to police them. (g) Completion of conversion work within a specified period Where alterations are required this covenant should be included to ensure that the approved changes necessary to facilitate the new use are undertaken within a reasonable period of time. It is suggested that the maximum time given for completion of any conversion works be 2 years, although extra time may be allowed if requested. (h) Architectural or structural changes Where a building is proposed to be altered to facilitate the new use, the CBC will be consulted under s.50(2)(b). In such cases approval of the plans identified by reference number and date should usually be given by the Commissioners (or DBF) before the conveyance (or lease) is completed. Such consent is additional to securing planning permission and listed building consent if appropriate. If no alterations are planned, an absolute covenant prohibiting any alterations should be included. (i) Non-disturbance of tombstones etc This covenant is applicable where there are tombstones, monuments or memorials situated within the property to be disposed of and where the bishop has directed that all or some of them should remain undisturbed. (j) Public access to the building/churchyard This covenant should be included where the building is listed Grade A or I or is otherwise highly listed because of some special feature(s). The form of such access, whether at specified times or by prior written application, should be agreed before completion and the details should be displayed on the notice board. Public access should also be included if EH (or the Heritage Lottery Fund) have grant aided the church over the past 10 years. This covenant is also usually applicable where there are graves or memorials in the former churchyard which relatives or others wish to continue to tend or visit and also where there may be the grave of some well-known person. Pastoral Measure Code of Practice (k) December 2009 Boundaries This covenant is included where part only of the churchyard is being disposed of and the new owner is to put up a boundary structure between the property and the retained churchyard. (l) Inappropriate planting schemes This covenant protects against the risk of structural damage caused by inappropriate planting schemes in former churchyard land, e.g. the planting of strong growing trees and shrubs too close to buildings or churchyard walls. The height and distance measurements may be varied to meet a particular need. (m) Access of Commissioners’ surveyor Where covenants relating to works are included in the transfer, this covenant needs to be included too, to ensure that the Commissioners can have access to check compliance. (n) Other special covenants The DMPC should ascertain at an early stage whether circumstances necessitate the inclusion of any special covenants to protect particular rights or amenities. In lease cases the lessee should assume repairing and insuring liabilities not only to ensure that the building is properly maintained but to absolve the DBF, as lessor, from any residual liability. For buildings of special architectural or historic interest this should amount to a full repairing covenant and a covenant to insure the full cost of reinstating the building. It may also be desirable, particularly where the use is unusual, to prohibit assignment of the lease without the lessor's consent. Where only part of the churchyard is to be disposed of, access over, and services to, retained land will usually be dealt with by exceptions and reservations, rather than by covenants. Pastoral Measure Code of Practice December 2009 Covenants to be included in the Transfer of the [site of] the Closed Church of____________________ [To be tailored to meet the requirements of the individual case] (i) As provided by Section 62(1) of the Pastoral Measure 1983 the following covenants on the part of the Transferee shall be enforceable as if the Transferor were the owner of the adjacent land and the covenants were expressed to be entered into for the benefit of that adjacent land and (in the case of covenants of a positive nature) as if they were negative. (ii) The burden of the following covenants is intended to bind and binds each and every part of the property into whosesoever hands it may come. (iii) A covenant not to do any act or thing includes an obligation not to permit or suffer that act of thing to be done by another person. (iv) The Transferee [jointly and severally] covenants with the Transferor: (aa)* The wording should follow the user clause of the relevant Order in Council/scheme. (aa) Not to use the property for any purpose other than as/for [*……………………..] and ancillary purposes; OR (aa) Site disposal where no use specified in scheme and/or there is adjacent church property. Not at any time to use or permit to be used the said property or any part thereof or any buildings erected thereon as or for:(i) (ii) (iii) (bb) a place of worship school mission room or institute for or under the control of any religious body any illegal or immoral purpose a theatre cinema betting shop sex shop funfair dance hall or other place of entertainments or for sport or amusement or any purpose connected with the same Not to use the property for any illegal or immoral purpose or for any purpose which may be or become a nuisance annoyance or disturbance to the Transferor or which shall (in the opinion of at least two of the following: the bishop for the time being of the diocese in which the property is situated, the dean for the time being of the cathedral which is the seat of the bishop and the archdeacon for the time being of the archdeaconry in which the Property is situated) be offensive to the principles and practice of the Christian faith; AND/OR (bb) (bb) Site disposal where there is adjacent church property. Not at any time to allow permit or suffer any act deed matter or thing in or upon the property or any part thereof or in upon the buildings erected thereon which may be or become a nuisance annoyance or disturbance to the incumbent for the time being of the benefice of ……………………….. Pastoral Measure Code of Practice December 2009 or which may tend to depreciate or lessen the value of the adjoining and neighbouring property belonging to the said benefice; (cc) Exclude in site disposal cases (ee) This clause may be omitted if the transferee requests. *Delete as appropriate – see (ll). (ff) A maximum of 6 months is suggested but may be extended upon request (gg) A maximum of 2 years is suggested but may be extended upon request. (cc) Not to demolish any building nor to erect any new or additional structure or building on the property; (dd) Not to disturb any human remains interred in the property; [(ee) To ensure the maintenance in a prominent position of a notice board of a size and type to be approved in writing by the Transferor indicating that the property is now used for the purpose stated in subclause (aa) *[and displaying the conditions of access for people wishing [to visit the former church or] to tend particular graves in the property;] [(ff) Within [………………] months of today’s date to carry out to the satisfaction of the Transferor’s surveyor the works necessary to make all buildings on the property wind – and watertight and thereafter to keep such buildings in the like condition and to such satisfaction;] [(gg) Within [……………] years of today’s date to carry out and complete to the satisfaction of the Transferor’s surveyor the works shown on the plans numbered ……………….. already submitted to and approved in writing by the Transferor;] [(hh) Not to make any architectural or structural changes (including, for the avoidance of doubt, any alteration to or the removal of any stained glass) in any building on the property except in accordance with plans previously submitted to and approved in writing by the Transferor;] OR (hh) Site disposal where there is adjacent property. (jj) Applicable where the Bishop has directed that the tombstones, monuments and memorials should remain in situ in the building or churchyard. [(hh) Not to erect any building on the property or any part thereof except in accordance with plans previously submitted to and approved in writing by the Transferor (such approval not to be unreasonably withheld or delayed);] [(jj) Not to damage any tombstone monument or memorial in the property nor, without the Transferor’s consent, to remove or disturb any such [*after consultation with the Commonwealth War Graves Commission];] [(kk) Not to permit or allow use of the property for the solemnization of marriages or as a place at which two people may register as civil partners of each other either under section 26(1)(bb) of the Marriage Act 1949 or under section 6(3A)(a) of the Civil Partnerships Act 2004 or under any other legislation for the time being in force amending or replacing the said Acts; [(ll) To give access at reasonable times to all persons wishing [to visit the former church or] to tend particular graves in the property, provided such persons have made prior written application to the Transferee;] [and to keep unobstructed by undergrowth overgrowth rubbish or other obstacles the access to any war grave];] *Omit words in square brackets where there are no CWGC memorials to remain in situ. (ll) Applicable where the building is listed Grade A or I or there are graves in the former churchyard which a relative or other person wishes to tend or visit and also where there may be the grave of some well known person. [(mm) Within 3 months of today’s date to erect to the reasonable satisfaction of the Transferor’s Surveyor [a stockproof post and wire fencing] along the [……..…………..] boundaries of the property and thereafter to maintain the same in good repair and condition to the reasonable satisfaction of the parochial church council for the parish in which the property is for the time being situated;] Pastoral Measure Code of Practice (mm)/(nn) Applicable where the diocese wishes this to be included. The height and distance measurements may be varied to the particular needs of the case. December 2009 [(nn) Not to grow anything on the property which may weaken or undermine the structure of any building or wall on the property nor to allow any trees or shrubs within 3 metres of any such building or wall to grow to a height greater than 1.5 metres;] [(oo) To give access at reasonable times and on reasonable notice to the Transferor’s surveyor to enable him to inspect the works undertaken by the Transferee in accordance with these covenants;] Pastoral Measure Code of Practice December 2009 Covenants applicable to the cleared site of a demolished closed church building 16.5 When considering the disposal of a cleared site the DBF will need to consider whether there is a need to include special covenants. In practice, these are usually only relevant if the site adjoins a parsonage or other church property, where some control over use of the site is desirable. 16.6 Relevant covenants in such circumstances are: (a) Not at any time to use or permit to be used the said property or any part thereof or any buildings erected thereon as or for:(i) a place of worship school mission room or institute for or under the control of any religious body (ii) any illegal or immoral purpose or for any purpose which may be or become a nuisance annoyance or disturbance to the Transferor or which shall (in the opinion of at least two of the following: the bishop for the time being of the diocese in which the property is situated, the dean for the time being of the cathedral which is the seat of the bishop and the archdeacon for the time being of the archdeaconry in which the property is situated) be offensive to the principles and practice of the Christian faith (iii) a theatre cinema betting shop sex shop funfair dance hall or other place of entertainments or for sport or amusement or any purpose connected with the same (iv) premises licensed for the sale of alcoholic drinks or any purpose connected with the same. (b) Not at any time to allow permit or suffer any act deed matter or thing in or upon the property or any part thereof or in or upon the buildings erected thereon which may be or become a nuisance annoyance or disturbance to the /for the time being of the benefice of or which may tend to depreciate or lessen the value of the adjoining and neighbouring property belonging to the said . (c) No building shall be erected on the property hereby conveyed or any part thereof unless the plans of the same have first been approved by the Commissioners in writing (such approval not to be unreasonably withheld or delayed). Pastoral Measure Code of Practice December 2009 Sale Proceeds and Lease Premiums The net proceeds of sales and lease premiums arising from the disposal of church buildings closed for regular public worship are paid to the Commissioners under s.51(5) and apportioned in accordance with s.52 of the Measure (s.51(5) provides for two-thirds to go to the DPA; s.52 provides for the application of the remaining one-third). Separate provision is made for the application of proceeds arising from cases pursued under s.46. Under Section 52 52 16.7 (PM 1983) Section 52 of the Measure provides for the application of the net proceeds from the disposal of closed church buildings. The relevant DPA receives two-thirds of the net proceeds of sales and lease premiums while the first call on the remaining one-third is the Commissioners' agreed contribution towards financing the CCT in the current funding period. The Commissioners are empowered to allocate from time to time any surplus to the TMA, in such amounts as they may determine, with any balance divided between some or all of the DPAs, again as the Commissioners may determine. There has been no such residual balance for some years. Rents arising from leases or licences are credited direct to the DPA and are not apportioned. 16.8 Under the arrangements for devolved DPAs, the DBF should, in the case of lease premiums, provide the Commissioners with a full statement of DPA expenditure on the closed church building when paying over any net premium for apportionment. Any costs charged by the Commissioners to the DPA funds held centrally will need to be taken into account prior to apportionment. For sales the Commissioners will prepare a final statement of account and, having first reimbursed the DPA for costs incurred by the diocese in the disposal of the property, and the TMA for any payments made towards the diocese’s expenditure on the building, will then apportion the net proceeds in accordance with the Measure. Costs allowable against sale proceeds 16.8A The Measure allows for the reimbursement from the proceeds arising from the disposal of a closed church building or its site of any costs incurred by the DBF, DMPC and the Commissioners on the property or in furthering its disposal or on the demolition of a former church. The Commissioners have determined that the following costs may be reimbursed from sale proceeds or a lease premium: newspaper notices agents’ fees minor repairs routine maintenance (replacing slipped tiles, clearing rainwater goods, vegetation etc) security insurance architect’s fees in connection with repairs/maintenance 87(3) (PM 1983) Pastoral Measure Code of Practice December 2009 Land Registry charges and other costs incurred in securing title to property cost of demolition/site clearance. In certain circumstances, costs arising from a Section 106 Agreement, to enable the alternative use of a former church, may be reimbursed from sale proceeds, if there are sufficient funds. The Commissioners have also agreed, in principle, funds permitting, to reimburse grants made by the Wolfson Foundation for the repair of churches after 1 July 2003 although they would not normally expect this to apply if closure for regular public worship occurs more than 10 years after payment of such a grant. Grants made under the English Heritage/Heritage Lottery Fund Joint Places of Worship Scheme may also be subject to repayment from sale proceeds if closure occurs during the economic life of the grant. Solicitors’ fees will not normally be allowed as a charge on sale proceeds except where the diocese’s solicitor acts for the Commissioners. Rent arrears on a failed lease, and interest thereon, will not be allowed as a charge on sales proceeds. Dioceses should consult the Commissioners if in doubt as to whether expenditure may be recouped from sale proceeds. Under Section 46 16.9 The arrangements for dealing with the proceeds arising from cases pursued under s.46 are set out in 12.12. Where the Commissioners are satisfied of the intention to provide a new church or place of worship within the benefice of a church which is being or has been declared closed for regular public worship then the cost of providing the new building can be a first call upon the net proceeds or premiums arising from the disposal of the closed church building. Disposal of Sites General 16.10 Where a closed church building has been demolished under the Measure (other than under s.46) the pastoral (church buildings disposal) scheme will generally provide for the DBF to dispose of the site. Alternatively the Commissioners may be authorised to deal with the disposal but that will be the exception rather than the rule. If the site is to be incorporated into the churchyard the Commissioners will prepare the necessary instrument. Otherwise, the diocese will need to instruct agents to market the site (and any adjoining land where appropriate) and make a recommendation for disposal accordingly. 16.11 If human remains and tombstones, monuments or memorials are present the DAC will need to deal with these in accordance with s.65 and Schedule 6 before disposal can proceed - see 15.41 to 15.63. If the Commissioners are dealing with the disposal they will consult the diocese on the need to include any special covenants in the conveyance or lease, particularly where the site adjoins a parsonage or other church property - see 16.5 to 16.6. Pastoral Measure Code of Practice December 2009 Disposal of sites of churches demolished otherwise than under Part III of the Measure 54(2) (PM 1983) 16.12 Under s.54(2) the Commissioners can prepare a pastoral (church buildings disposal) scheme to deal with the disposal of the site of a church demolished otherwise than under Part III of the Measure. This includes churches demolished under authority of a faculty or under superseded legislation which provided for demolition but not disposal of the site. The scheme can deal with any annexed land at the same time and will generally authorise the DBF to deal with the disposal. 16.13 See 12.8(ii) for procedure for marketing sites. There is no requirement for either formal proposals or formal consultations by the diocese, but the views of the incumbent, who will normally be the owner, should be ascertained. After considering all offers received the DMPC should make its recommendation to the Commissioners in the format provided for in Annex 9B. The Agents’ report on marketing and a summary of all offers received should also be provided. The DMPC should provide an explanation if the best offer is not recommended. Following completion of the pastoral (church buildings disposal) scheme, the arrangements for the disposal of the site will be as set out above. Application of sale proceeds 16.14 The Commissioners apply the net proceeds of any sale of a site (or net premium on any lease) authorised by a scheme made under s.54(2) in accordance with s.51(5) and 52, that is two-thirds to the DPA and one-third towards the cost of funding the CCT. 16.15 However, if the Commissioners are satisfied that a replacement church or place of worship is to be provided within the benefice in which the demolished church was situated, then the whole of the net proceeds or net premium can be applied towards the cost of the new building, so far as the money is required, leaving any excess money to be apportioned in accordance with s.51(5) and 52.
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