Chancel Repair Liability

RiskAdverse100

An unwelcome consequence of carrying out a full Chancel Repairs Search when you are buying a property is that, if this does disclose an actual liability and you go ahead with the purchase, your solicitor will be obliged to register the liability at the Land Registry at the same time as the purchase is registered.

This would advertise to the world at large, and your local Church in particular, that your particular house is actually affected. Think what this would do to the property's value!

This means that carrying out a full search should only be done in very specific circumstances - when it is essential that it is established one way or the other if a liability exists. Such circumstances are so specific that, off the top of my head, I cannot think when they could arise!

RiskAdverse100

Davids

Indemnity Insurance and
Chancel repair.

A couple of years ago I moved house.

The local council had no record of Building Regs on an extension on the house I was selling, even though I had the original, stamped plans.
The buyer's solicitor charged me about £250 for Buildings Indemnity Insurance.

The house I bought also had an extension. Same problem with Building Regs records. (Mid Suffolk DC again)
I asked for Indemnity insurance.
Although they charged me for it, it took me over a year to get a copy of the policy from my solicitor.

I've just sold again. No mention of buildings regs indemnity policies, but welcome to...

Chancel Repair policies!

They're stinging me again.

Radio Suffolk recently held an interview with a church administrator.
He gave the impression that there were only half a dozen properties in the whole of Suffolk (ex Vicarages, etc) that were liable.

So why am I paying this kind of insurance on a 25 year old property in a housing estate?

Is this a new SCAM? https://secure.clsl.co.uk/index.php

There seems little that I can do, apart from grouse and pay up.

Davids

kitchpoo

My sister just had a house sale fall through as late in the day (3 days prior) of buying a house their solicitor/mortgage company found out the house they were buying was in this indemnity area, and the pre-arranged mortgage they had wouldnt entertain the 'risk' - the net result was the seller wasnt willing to wait for them to arrange cover/find another mortgage company - and the sale never went through.

The seller is apparently now still finding it hard to find a buyer.

This is in Rural Norfolk, so it appears most of these schemes are rural parishes.

clairefun

I'm selling my house, and have just had this come up on the property I'm selling, that the sols have done the search and our property is within a a parish which continues to have potential chancel repair liability. I can either pay £130 quid for the house I'm selling, or not. Don't really know what to do, but I can't imagine our local community minded church in the poorest area of Chatham (a pretty poor area to start with) would ever try to get a resident to pay out.

exmodel

I'm selling my house too and this crappy charge has come up. I have been googling like mad but can't find out who should pay for the insurance...the buyer or the seller??????
As the seller, I feel it isn't my responsibility to insure a house I will no longer be living in. Can anyone out there give me a definitive answer or at least a good link to find out more. Ta!

darkcloudi

exmodel wrote: »

I'm selling my house too and this crappy charge has come up. I have been googling like mad but can't find out who should pay for the insurance...the buyer or the seller??????
As the seller, I feel it isn't my responsibility to insure a house I will no longer be living in. Can anyone out there give me a definitive answer or at least a good link to find out more. Ta!

I bought a house and my solictor advised me about this policy, the vendors solicitor mentioned that it would benefit me in a way so I should cough up if i'm interested as the vendor was not going to pay.

I guess as it benefits the new purchaser then they should pay as in my case.

I believe I read somewhere if the churches don't register it on the deeds I think it was by 2013 then the chancel cannot claim anything thereafter. I will try to find the link.

darkcloudi

Here we are found the link: http://www.churchlaw.co.uk/ its found under Buildings then Chancel Repairs.

I quote from the website:
"Under the Land Registration Act 2002 (which came into force on 31 October 2003), chancel repair liabilities must be registered at HM Land Registry by 30 September 2013. If they are not registered, they will become unenforceable even if, as in the case of some Oxbridge colleges, the same lay rectors have maintained the Chancels since the fourteenth century."

AnW'sMum

very intersting, so it would seem from your quote that Insurance would not be required beyond 1st October 2013 and therefore anyone having to uprchase a policy now would only need to provide cover up to 30th September 2013?

darkcloudi

AnW'sMum wrote: »

very intersting, so it would seem from your quote that Insurance would not be required beyond 1st October 2013 and therefore anyone having to uprchase a policy now would only need to provide cover up to 30th September 2013?

I guess so as the extract was from the website which apparently is stated in the Land Registration Act 2002. I haven't had a chance to look at the act in detail.

Debt_Free_Chick

exmodel wrote: »

As the seller, I feel it isn't my responsibility to insure a house I will no longer be living in.

I can understand that - but you are also, effectively, selling any future liability to meet any bills for chancel repair.

There are no "hard & fast rules". You can either tell the buyer to "arrange your own insurance, if you think you might need it" or say "I believe there's a potential liability, but don't worry, I've got insurance for you".

If you were the buyer, what would make you go ahead with the purchase?