Chancel Insurance - £125 / £140! Thought it was cheaper than that!

mickym

My solicitor has been in touch to tell us that the property we are looking to purchase will be liable for Chancel costs.

The solicitor has said that our mortgage lender requires us to cover ourselves from this, and has found us a policy at a price of £125 (for 35 yr cover) or £140 (for perpetual cover).

I didnt think that Chencel insurance was so expensive? A friend of mine say his quote was only approx £20!

Why is mine so much more expensive?

jjlandlord

mickym wrote: »

I didnt think that Chencel insurance was so expensive?

I guess quotes may vary depending on the insurer and the area, as for all insurances.

That said, whether it's £20, £125, or £140, considering the period of cover the insurance offers, the premium is basically nothing.

mickym

I know it doesnt work out massively expensive over the duration...but for such a debatable worthwhile insurance it does make it expensive.

It really needs to be abolished.

What happens if the person buying the house is an atheist, or follows a different faith? Its such an archaic law that really needs to be updated.

My solicitor has given me my quote from CLS (Conveyancing Liability Solutions Limited).

Is there anywhere else I can get it cheaper or does it have to be done through a solicitor?

wriggly

It effectively will be abolished in 2013, as by then, any claims the church has on a property must be registered on the title deed.

In the meantime, you need to choose whether to pay for insurance or take a very very small risk that your house is liable.

Chancel insurance often varies depending on:
1. how long it lasts
2. whether it is solely for you or whether it passes onto the next buyer

If you buy perpetual transferable chancel insurance, you pay the highest fee, but if in the next two years, the church decides that you're liable, your house should not lose any value, since there will never be an obligation on you or future owners to pay.

For any other type, if you're found to be liable, the insurance will pay out immediately, but eventually your house will not be covered and it may lose some value.

Mind you, I haven't heard of many houses actually becoming liable. Does anyone know if the Church is actively registering obligations?

puddy

we paid about 110 a couple of years back, i didnt want to take the risk no matter how small but had to grit my teeth to pay it. a complete rip off but who wants the gamble?

i had heard of a couple of houses where the church asked for money, i dont know how widespread it is but the cases i saw were expensive

firstaspect

I'd be interested into which Mortgage lender *requires* chancel cover. It's usually just something added on by the solicitors which you can ask to be removed.

mickym

Lender is Yorkshire Building Society, and solicitor has said they are one of those that require it for the mortgage (although I havent seen anything in my mortgage offer other than Building Insurance being a neccessity).

My solicitor has said the Chancel Check Search which reveals that the
property is located within an area which continues to have a potential
Chancel Repair liability.

The insurance offered is with Conveyancing Liability Solutions Limited (Chancel Sure). £145.88 for upto £250,000 cover.

What frustrates me is that there seems to be a limited amount of alternative policies available and they have to be organised through a solicitor.... so shopping around for an alternative is impossible.

Think i may just pay it to avoid it being a headache.

If there is a chance im likely to lose value from my property then I do not want that concern.

Richard_Webster

The solicitors should have researched the market and obtained cheaper cover.

I have cover on a block policy which costs £10 for 25 year assignable cover and £15 for perpetual cover. I insure all my buyer clients because it is cheap[er than doing a search. If your solicitor cannot provide cover at this kind of price suggest he contacts ISIS Conveyancing and gets a block policy with them!

And, no, sorry, I can't arrange cover for any but my clients and sometimes for their buyers.

I take the view that lenders do require the point to be covered and it is not optional. The CML Handbook is admittedly vague, requiring us to carry out all usual searches, or words to that effect.
The only vague reference to Chancel Searches/Insurance is from the Halifax group who say that if the mortgage is for more than 35 years they are happy with a 35 year indemnity policy. I have to read into that they at least consider that the point does need to be covered and silence from everyone else is not helpful, so I take the cautious view. This is also in the context that a number of lenders clearly say that we are not required to carry out Environmental Searches - if they are clear on that - why not on Chancel?

The difficulty is that trying to get lenders to tell you clearly in writing whether as a matter of policy they require it. Asking for an explanation of their guidance is like getting blood out of a stone. So it is easier for most people to pay £10-£15 than to wait around for weeks and weeks to get an answer from the lenders.

If TimmyT or anyone else has a clear letter from a lender saying that Chancel searches and cover are not needed then I would be grateful to hear about it.

hazyjo

I asked something about it on a similar post recently...

What I don't get is that this is cropping up when people buy. What about all those thousands of people who live in their homes and haven't recently moved in. Nothing's come through any letterboxes to the best of my knowledge saying people should take out this insurance. My mum wouldn't have a clue about it, nor would any of my friends.

Surely everyone would have to pay, not just those who've moved in during the last couple of years.

So how the hell would they enforce that? Everyone in the parish of whatever church is claiming would have to find a set amount of money?

I get why people are insuring against it, I just don't get what happens to all those in their houses who know naff all about this. Would a bill just land on their doorstep by the end of 2013, or whenever the deadline is? People are struggling as it is. I cannot for the life of me work out how anything for over say £200 would be affordable to the majority of homeowners. What if it was for £5k each in some areas?!

I reckon the riots over this would be 10x worse than those over the poll tax!

btw, we're with Yorkshire Building Society (bought in March), and we weren't forced to take the insurance. Obviously, things might have changed though, or the terms for your particular mortgage might be different.

Jx

mickym

Im going to reply to solicitors (they have been very good so far and have been recommended by family who have used them in the past).

So, can anyone give to me a list of alternative Chancel Insurers other than Conveyancing Liability Solutions Limited (Chancel Sure).

I can then provide them to my solicitor to find out if they can obtain cheaper.

Thanks

Welsh_Totster

When selling the family home earlier this year that had been in my families possession for over 60 years (and we were only the second owners of the 100 year old house) my solicitor called to say the search had brought up the Chancel repair liability possibility and the buyers were asking if I'd pay for an insurance. I was happy to for £50 to make sure the sale went through smoothly. However in the 60 odd years my family owned the house we were oblivious to the possibility of having to cough up for the local churches repairs! I think Richard W has it spot on, assume every property needs cover until it's abolished in 2 years time just in case.