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To buy or not to buy? The purchase of the Neuadd Dyfi - questions and answers

These questions have been asked in discussions on whether to buy the Neuadd Dyfi building. Answers are based on discussions with and advice from our legal advisers, Gwynedd Council, the Community Council and the Wales Council for Voluntary Action.

Wouldn’t it be better to extend the current lease?		 This is not possible now but might be when the lease expires in six years' time. New terms would almost certainly make us, not Gwynedd Council, responsible for insurance and maintenance. If we do not own our building, getting funding and permission for the extension and the doctors' surgery will be much more difficult. Extending the lease is not a good option.
Is the purchase price a fair one? Are legal costs involved? At £5000 the purchase price is a very good one for us that we can afford. The cost of the legal work involved is £2000 and we have set money aside to cover this.

The Community Council leases the building at present. Will they own the building?		 The best arrangement will be for the Official Custodian (in effect the Charity Commission) to be the body that holds the legal title to the building on behalf of the Neuadd Dyfi Charity. This is recommended good practice for Village and Community Halls in England and Wales and will mean that Community Councillors have no fear of any conflict of interest.
Will we need a new Trust Deed? Yes because the existing Deed is a combined Deed of Trust and Lease Agreement and in any case is out of date. We will draw up a new Deed of Trust using the format recommended for Village and Community Halls. The charitable purposes of the Neuadd Dyfi will remain exactly as at present.
Who will run the new building? As at present there will be a Management Committee with a Chair who will be responsible for running the Neuadd Dyfi. The composition of this committee will be set out in the Trust Deed.
If Community or County Councillors are involved with the Neuadd Dyfi will they not have a conflict of interest? Councillors who, for example, are members of the Management Committee will be able to discuss and vote on matters before their respective Councils that relate to the Neuadd Dyfi, provided that they declare an interest in these matters. Only if they, relatives or close associates could benefit materially from any of the matters under discussion would they be required to withdraw from a meeting during the discussion. So to all intents and purposes there is nothing that prevents anyone being an effective member both of the County or Community Council and the Neuadd Dyfi Management Committee.

Is the building in good condition?

We have had a structural survey done at a cost of £800 which has not revealed any significant problems.
With insurance and maintenance to pay every year can we afford to run the Neuadd Dyfi? We estimate that additional costs of insurance and maintenance will be approximately £2500-£3500 each year. We will be able to pay for this from the increased activity of the Neuadd Dyfi and from the income from the doctors' surgery. We will need to manage affairs very carefully in the early stages after the building has been completed and activities are coming on stream
As the Neuadd Dyfi will increase its income will we not need to have a full audit with more expense? No. Even our increased income will not be at the level at which the Charity Commission requires our accounts to be audited. As at present they will need only to be reviewed by a competent person.
Conclusion: as all questions relating to the purchase have been answered satisfactorily the purchase of the building is in the interests of the Neuadd Dyfi and the community it serves.