Traditionally the interest of the State in respect of capital expenditure on privately owned properties used as schools were secured by way of charging leases. Where the property ceases to be used as a school the owner can seek to have the charging lease terminated. Such applications are considered by my Department on a case by case basis. Some of the factors which my Department would have regard to in considering such an application are the current and future education requirements for the area in which the property is located, and the level of capital expenditure by my Department on the school. While these are some of the factors which my Department may consider other factors may also be considered in specific circumstances.
As previously advised, in general the necessity for a valuation would not arise if a patron is seeking termination of a charging lease. In this case my Department had regard to the level of capital funding previously provided to the school as there was a charge over the school based on this funding. This was one of the issues to be considered and not the current market value of the property.