•  Identify needs within the local area through community consultation.  This would normally be undertaken by a steering group which would be established in the early stages of investigation.
• Decide which of the identified needs you would like to address by undertaking  a needs analysis
• Look at different ways which the needs could be addressed (this may be referred to as an options appraisal)
• Once the most appropriate two or three options have been identified, they need to be investigated in more detail (this may be referred to as a feasibility study). This work will help to identify the preferred option to deliver the project. Things to be investigated are: 

o         how well each option will address the identified needs

o         the financial implications of each option taking into account the anticipated development costs

o         the financial sustainability of each option once the project has been developed

o         the environmental impacts (positive and negative)

o         the technical aspects and constraints of each option

o         the internal needs of the community body, such as governance, legal status, etc 

• Once the preferred option has been identified, a business plan should be compiled to provide detailed information on how the project is expected to operate. 
• Consider whether the landowner is willing to sell -  
  • Is the asset advertised for sale on the open market?
  • If the asset is not advertised for sale, is the landowner willing to enter into negotiations regarding sale of the asset 
• If the landowner is willing to sell, some consideration needs to go into the timescales involved. Other project planning issues to consider include:
• Will the necessary funding be raised in time if there is a closing date?
• Will the landowner be willing to accept the valuation price? (public funders will generally only pay towards the value of the asset as a percentage of an independent valuation)
• In certain circumstances you may want to approach the owner to express your interest in the asset. If the asset is for sale on the open market you may wish to contact the selling agent to note your interest and to be informed if it goes to a closing date.
•  If a land asset (including property) is being considered that is not for sale on the market, registering an interest in the land under Part Two of the Land Reform (Scotland) Act 2003 could be considered.   Successfully registering an interest in the land will give the community the first opportunity to purchase the land prior to it going onto the open market, if/when the owner indicates an intention to sell.  You can find out more by clicking on the Community Right to Buy link on the right hand side which will take you to the information on the Scottish Government website.
• A valuation of the asset will need to be undertaken by a RICS valuer to understand the market value. The valuation may highlight some issues which need to be investigated further. A valuation report expires after a certain period of time and this should be kept in mind when deciding when to instruct a valuation as funders/lenders will not accept out of date valuations.
•  Once it has been decided to purchase the asset, it is likely that there will be legal fees associated with the purchase, such as: fees for property/asset searches, obtaining and recording a certificate of title and dealing with any standard securities for example.

 Financial Assistance from HIE for asset acquisition

Intervention levels will vary depending on the needs of the project. All funding from HIE is discretionary and subject to a rigorous appraisal process which will determine fit with the Scottish Government Economic Strategy and the HIE Operating Plan. For more information please discuss with a member of HIE staff.  

Pre-acquisition costs 

If an overall project is deemed to fit with HIE’s targets, then pre-acquisition costs may be eligible for HIE assistance. However, all approaches for funding will be subject to assessment.

Acquisition and development costs

If an overall project is deemed to fit with HIE’s targets then such costs may be eligible for HIE assistance. All approaches for funding will be subject to an assessment process.

Current maximum intervention rates are 40% in fragile areas (as specified in the HIE operating plan) and 20% in other areas.  HIE also expects a minimum 5% contribution from the applicant group towards the acquisition.

Other funding 

Grant funding opportunities for acquisition have declined in recent times and groups are advised to consider the viability of some private finance in their business plan. Land management agreements and/or leasing arrangements may become an alternative means of community asset management.