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Latest news and insights

Gillespie Macandrew announced as Women in Wellies podcast sponsor, supporting women in rural Scotland

Read full details on our sponsorship of the Women in Wellies podcast series.

Does a new dawn await Scotland’s grid infrastructure?

Read insights from Derek McCulloch, Head of Energy at Gillespie Macandrew, on the critical shift in how we power our nation.

Co-location of technologies: A new, sophisticated approach to sites

Amy McDowell, Partner, Energy and Strategic Land, outlines why co-location offers many benefits, however, careful planning and considerations are crucial.

Latest news and insights

20 May 2025 | Time to read: 2 mins

Gillespie Macandrew announced as Women in Wellies podcast sponsor, supporting women in rural Scotland

By Lizzie McFadzean

Read full details on our sponsorship of the Women in Wellies podcast series.

20 May 2025 | Time to read: 4 mins

Does a new dawn await Scotland’s grid infrastructure?

By Derek McCulloch

Read insights from Derek McCulloch, Head of Energy at Gillespie Macandrew, on the critical shift in how we power our nation.

16 May 2025 | Time to read: 4 mins

Co-location of technologies: A new, sophisticated approach to sites

By Amy McDowell

Amy McDowell, Partner, Energy and Strategic Land, outlines why co-location offers many benefits, however, careful planning and considerations are crucial.

01 May 2025 | Time to read: 6 mins

Land Reform Bill – What is the current status? 

By Robert Scott-Dempster

In March this year, the Scottish Parliament voted in favour of the general principles of the Land Reform (Scotland) Bill and the Bill has now moved to Stage 2. Following...

Key considerations around the future use of the property and funding options

As detailed in our full guide, there are various matters to be considered at each stage of a Community Asset Transfer (“CAT”).  Many of these apply regardless of the intended used of the property or the relevant authority which will be subject to the CAT request.

However, there are additional matters to be considered if a Community Transfer Body is utilising third party or public funding in connection with a CAT, or if the relevant authority decides to make it a requirement within the decision notice that a standard security (commonly known as a ‘mortgage’) is granted in its favour over the property to protect its interests.

A standard security is usually required to;

  • secure the repayment of the loan;
  • facilitate enforcement of the loan conditions; and/or
  • procure performance of the obligations tied to the funding or the CAT.

Aside from ensuring that it has the requisite power to grant a standard security, a Community Transfer Body should also be acutely aware of the conditions and obligations created in the standard security which may amongst other things, limit the availability of future funding.

Our Charities team can assist with ensuring that your constitution allows the Community Transfer Body to borrow funds and to grant a security over a property.

A Community Transfer Body should consider whether it may need to borrow further money in the future and whether there will be scope to do this within the context of the security conditions about to be entered into with the relevant authority. Most mainstream lenders will want what is known as a ‘first ranking’ standard security. If the relevant authority or a grant funder has a standard security over the property, they may agree  to accept a ‘second ranking’ standard security to allow the mainstream lender to take priority.

Many CATs are approved  subject to certain conditions or use restrictions. These conditions are aimed at ensuring that the land is used for the benefit of the community and to avoid any risk that the property turns into a more ‘commercial’ venture aimed at profiting off what was community property. It is important to have in mind the future use considerations mentioned above when agreeing to the terms of the decision notice to ensure that the charity can comply with the CAT conditions and evolve in the future to support the community.

Our Charities team are here to help protect your interests and to ensure that the CAT serves can assist with ensuring that your constitution meets the requirements for a CAT.

There is a lot to consider as an organisation looking to pursue a CAT, due to the unique and sometimes restrictive nature of the CAT process. To view all considerations please click here.

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