Conveyancer - Chancel Indemnity Insurance??

Ivrytwr3

Can anyone help explain what this is we have been billed for?!

4. Chancel Repair
As mentioned in the Starter Pack, in lieu of a Chancel Repair Liability Search we have taken out an Indemnity Insurance Policy to cover you in the event of your receiving a request for contributions relating to Chancel Repair Liability. We have enclosed with this report the KeyFacts policy summary providing full details of the insurance and what it covers along with a “Demands and Needs Statement” detailing why we have arranged this policy and our reasons for recommending it, in accordance with the The Licensed Conveyancers Designated Professional Body Rules 2004, both of which you should read carefully and retain for future reference.

There is a legal complication (“Defect”) with the content of certain parts of the title to the subject property (“the Property”). Some Defects are minor and are considered too insignificant and will at best, just be discussed with you. Others may require some action to protect you or preserve the enjoyment or marketability of the Property.
In your case there may be some belief that the property could be in a locality where there is a liability to contribute towards the cost of repairing the church. This only applies to certain land but it could apply to a house on a typical housing estate or, for example, a village cottage. This could affect your use and enjoyment of the Property and have a potentially significant effect on your finances. A search is possible but so too is insurance against a liability in the future.
Prudent buyers, owners and lenders will either want a legal solution or an insurance solution to this problem. We will have discussed the pros and cons of the legal solution, if any, but as legal solutions are usually expensive and lengthy involving third parties and their respective lenders, solicitors and surveyors, the insurance based solutions have become popular and acceptable, particularly as they are less expensive.
Because these complications exist in respect of the Property, it is our advice that you buy an insurance policy. Based on a successful claim, the insurance benefit is that if as a result of the defect the value of the property is less than its market value, then the insurance pays the difference as if the defect didn‟t exist. The problem is not resolved but the effect of the problem is addressed by way of compensation. Further this addresses the concern of mortgage lenders and most buyers and owners of properties.

Insurance Company: ISIS Conveyancing Insurance Specialists

Premium payable: £5.25

Fee for arranging policy: £21.52

Is the £5.25, monthly, yearly, life?! I will of course be speaking with the conveyancer, just wanted to hear some thoughts.

Thanks

azkaban420

The total amount of £21 odd is a one-off fee as far as I'm aware. Usually the seller will pay it to cover for things they don't have paperwork on like e.g. boiler installation docs, gas safety cert.

That's the impression I got off my solicitor anyway

Not sure of the breakdown of the £5.25 premium actually - best check with your conveyancer?

Az

Richard_Webster

There are loads of threads on this forum about Chancel Repairs - you can read through them all by searching.

Perfectly reasonable explanation - policy costs £5.25 as a one-off but they charge £21 odd for arranging it so total cost £26.77.

Bit naughty charging for arranging it as they going to do it in every case so should include in their overall cost, but having said that in the whole scheme of things it is not that unreasonable.

Most solicitors would not just do a policy but would do a search for £17.63 and then if it came out that the property was in an area where there was some liability it could cost a further £60 or so to get insurance. Their insurance itself is very cheap - I get charged £10 for a similar policy but don't charge for arranging them - and no, I can't do one for you because I am not acting for you.

A lot of the problem here is that it is so obscure and complicated that it is almost worth charging for dealing with the telephone calls asking for an explanation!

Ivrytwr3

Thanks for that Richard.

landlordharrow

yes thanks, thats what I was looking for!