Before taking ownership of a building or space, it's critical you understand your rights and the different routes you could take. 

If you already know what building or space you want to take over (we call this the 'asset'), you may be able to register it as an Asset of Community Value with the local authority. This gives you the 'Right to Bid' if the asset then comes up for sale.

If the asset is owned by your local authority, you should talk to them first. They may be willing to transfer the asset to a community organisation at a discount. Your local authority may publish a Community Asset Transfer policy on their website which will give you an outline of the process.

The following Locality resources may be useful to you at this stage, please contact us for more information and advice:

What are Assets of Community Value?

Understanding the Community 'Right to Bid'

Understanding Community Asset Transfer: A guide for community organisations

You may already be seeking to protect a specific building or space, but if not your first stage is to identify potentially suitable assets – for example you may need a community meeting space or a more tailored place to deliver specific services.

Right from the start, think about feasibility - how you will buy or refurbish the asset, who will use it and how you will cover running costs. You may need specialist help with aspects of this but your organisation needs to be in the driving seat. 

Prepare rough financial projections from the start that you can check against and update as you go, including the cost of purchase and any refurbishment, potential sources of funding, and budgets for income and expenditure when the space is up and running. 

The following resources may be useful to you at this stage, please contact us for more information and advice:

Assessing the Feasibility of a community asset project

Keep it in the Community: an online database of registered Assets of Community Value

Once you have a feasible option, you need to write a business plan.  You’ll need this to secure funding and convince stakeholders to back the project (including the local authority, if you are seeking a community asset transfer). The process will help you think about how you’ll run the asset, how you will market it, and what organisational structure, board and staff you’ll need. 

You’ll need detailed financial information about income and expenditure when the asset is operational, the cost of acquisition and/or refurbishment and how you’ll cover those costs. 

Operating an asset of any kind involves risk, so you’ll need to think about possible risks and how you might avoid them or reduce their impact in a risk register. 

The following Locality resources may be useful to you at this stage, please contact us for more information and advice:

Writing a business plan for a capital project: guidance 

Business plan template

How to create a cashflow forecast

How to create a risk register

Directory of capital funding for purchasing or refurbishing assets

A beginner’s guide to finding funding for your project

For any community ownership project, the support of the community is vital. People and organisations will benefit from the service provided and will be your customers.  Consulting the community at an early stage will give you vital information about what activities to provide and how local people want to use the building or space. 

But your community engagement can’t stop there – continue to talk to your community to update them, find out what they want, and check your assumptions. This will ensure local people use and value the space, and it will help you recruit volunteers and board members. Keep records so that you can demonstrate to potential funders that you have community support. 

The following Locality resources may be useful to you at this stage, please contact us for more information and advice:

Top tips for community engagement

Engaging your community in a meaningful way

It is essential to research different funding options to help you buy or refurbish your community-owned asset. Options include grants, donations, loans and community shares - many capital projects use a mix.

Each funder or investor will have different priorities and timescales which need to be managed. The information required will differ, but most need detailed financial information, evidence of community support and information about your board or management committee and other people involved in your organisation.  

Once it’s ready, funding to run your asset can come from a range of sources like room hire, cafes, shops, delivering training or transport, or winning contracts or grants to provide services such as social care. It can be challenging and very time consuming to raise grant income to cover ongoing running costs, so try to maximise income through room hire, trading and contracts. 

The following resources may be useful to you at this stage, please contact us for more information and advice:

A beginner’s guide to finding funding for your project

Directory of capital funding for purchasing or refurbishing assets

How to provide services through tender, contracts, and commissions

Renting your space for the benefit of your community: recorded webinar

To purchase a building, you’ll need legal advice to ensure you’re aware of any covenants and planning restrictions, and you may need planning permission particularly if you are changing its use. 

If you are leasing a building, you will need legal advice to fully understand your obligations and those of your landlord. 

Community asset transfer is the transfer of an asset from a local authority to the community at a discount. Some local authorities set out the process in their community asset transfer strategy – it will usually be on a long leasehold basis, so you will need legal advice on the draft lease. 

Most building projects such as refurbishment, extension or a new build will require a range of professional input such as solicitors, architects and other property professionals. In most cases, you will need to go through a tendering process to secure building contractors. 

Even while you’re drawing on external support, you need to be very involved in the process – you are the expert on your customers, and you need to make sure all aspects meet your needs. It’s also important to check that you meet the requirements of your funders and investors. 

The following Locality resources may be useful to you at this stage, please contact us for more information and advice:

Engaging professional advisors when acquiring or adapting your building 

Understanding Community Asset Transfer: A guide for community organisations

There are many aspects to running a community building and covering your running costs.  It is important to ensure that you operate the building safely, in line with legal requirements and best practice. You will need policies and procedures covering all aspects of the operation of the building.

If you rent out space in your asset, you will need to develop and implement plans for  marketing and promotion to build your customer base. 

You may consider changes to your asset to improve its environmental performance.  This has the dual benefits of contributing to addressing the climate crisis and reducing your energy bills. 

It is essential to maintain community engagement and ensure that you are involving all sections of your community on an ongoing basis. 

The following Locality resources may be useful to you at this stage, please contact us for more information and advice:

Renting your space for the benefit of your community: recorded webinar

How to get publicity and press coverage for your project

Energy efficiency for community buildings: Quick wins checklist