For as long as a church building serves its sacred purpose, its market value is largely theoretical: there is no market for a church that remains a church. Only deconsecration — profanation under can. 1222 of the Code of Canon Law in the Catholic sphere, deconsecration by the competent church authority in the Protestant sphere — releases the building from that tie and makes another use conceivable at all.
Before deconsecration: value in bondage
For valuation purposes this means, first of all: a place of worship in its intended use generates no income, has no market rent and no comparable transactions. Anyone who must nevertheless value it — for financial reporting or a portfolio overview, say — cannot avoid asset value as the starting point.
After deconsecration: value depends on what is possible
With deconsecration the question shifts fundamentally. It is no longer "what is the building worth" but "what can still be done with it". Four points then tip the balance:
- Planning law. What use does the local development plan permit? A church often stands in an area designated for community facilities — residential use then requires an amendment.
- Listed building status. Deconsecration does not affect listed status. Requirements as to the façade, roofscape and often the interior remain in place.
- Fabric and layout. Great ceiling heights, few storey levels and a structure designed for a single purpose limit conversion options and drive up costs.
- The site. Frequently it is not the building that drives value but the land — particularly where demolition would be permissible under heritage law.
Deconsecration is not automatic
The decision rests with the church entity and the supervisory authority, not with the valuer. Valuation must therefore keep the cases apart: is the tied condition being valued at the valuation date, or a property already deconsecrated? The two produce markedly different results, and the assumption belongs expressly in the report.
What this means in practice
Anyone preparing the sale of a church building should observe the order of steps: first clarify the permissible use, then value. A report that assumes a change of use which cannot be achieved under planning law helps neither in the governing body nor before the supervisory authority.
How the valuation is structured methodologically is described under Valuation of churches and ecclesiastical property.
For a deeper look: Market value of church buildings: How ecclesiastical properties are valued
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