Potential Chancel Repair Liability affect value of house?

leese16

Hi

Just a quick query if anyone can shed any advice.

Ive recently put in to purchase a property and have just had a letter from my solicitors detaling some issues they found when doing their searches.

The main one is the 'potential chancel repair liability'. Ive searched high and low for information on this and it all seems pretty explanatory. The solicitors are looking to reclaim the costs of an insurance policy to protect us from this from the vendors so theres no issue there.

The worry we have is whether or not having this hanging over the property will devalue it in any way?!?!

We dont want to put into a house thats going to lose a lot of value over somethin so small.

Has anyone else had any experience in this?

Thanks

go_cat

Churches have to make a claim on a property by I believe Oct 2013 or it's not valid

Get indemnity for now. If you are in a built up area it is highly unlikely one house will have a claim laid on it anyway. It's more for large houses on huge bits of land

jjlandlord

As your solicitor probably explained, risk chancel repair liability is dealt with by taking a very cheap insurance, which one off premium covers the property for decades.

So why would it impact the value of the property?

From personal experience, no-one seems to care about this beyond paying the minuscule cost of the insurance. It's all forgotten after that.

SleeplessinScandinavia

I think when all that 'bumpf' comes from the solicitors, it looks scary to many folks - but yes I agree, not really an issue (certainly after 2013)

Anyone really concerned should look out for addresses such as 'Church Road/Street/Close' etc (or any other thoroughfare named after part of a church). :laugh:

They are possibly on land which once belonged to the church and potentially have properties that may be affected by 'Chancel Repair Liability'

maninthestreet

People misunderstand the October 2013 cut-off date for chancel repair liability- the church has to register interest in any property built on glebe land before the property is SOLD for the first time AFTER October 13, 2013.

Richard_Webster

People misunderstand the October 2013 cut-off date for chancel repair liability- the church has to register interest in any property built on glebe land before the property is SOLD for the first time AFTER October 13, 2013.

I certainly hadn't understood it like that. My take is there are 3 situations:

1. Church registers against property at Land Registry before 13/10/13 then the liability continues on the property registered against. If you have perpetual insurance now then you are protected. (After 12/10/13 too late for Church to register even if it wants to.) Very few properties in this situation.

2. Any property sold from 13/10/13 where there has been no registration against title - buyers take free of any possibility of liability.

3. Unsatisfactory limbo position of those who own properties at the moment or buy before 13/10/13 - Church might be able to claim against their owners so they are not completely safe. As the years go on it will become more and more difficult to find properties that have remained unsold since before 13/10/13, but technically they will still be the subject of liability.

The whole thing is an embarrassment to parish clergy most of whom would rather not get involved and wouldn't have minded at all if the liability had been abolished completely in the Land Registration Act 2003 instead of this silly complicated fudge that has simply generated otherwise unnecessary work for solicitors. Anyway Church shouldn't be about maintaining old buildings.

jjlandlord

Richard_Webster wrote: »

The whole thing is an embarrassment to parish clergy most of whom would rather not get involved and wouldn't have minded at all if the liability had been abolished completely in the Land Registration Act 2003

Well in such case they should not register against any property and issue a deed never to seek chancel against any property.

MotheroftheKid

Sorry to hijack this thread. I live in a house very close to a church and on the original deeds, I seem to remember that my home was used as the rectory. I've lived here for about 15 years and cannot remember ever taking out chancel insurance. I have no plans to move, is it worthwhile me taking out indemnity insurance?

Mickygg

No this won't devalue. I have just bought a house with this exact liability and it didn't put me off. For a small fee you can get insurance, but there have been articles saying that churches will very rarely action this otherwise they risk local communities turning against the local church.The main insurer for this apparently is raking in the money.

Richard_Webster

I seem to remember that my home was used as the rectory.

It is much more complicated than this because parish boundaries have changed, but if the medieval parish Church had a rector rather than a vicar then there couldn't be any liability because it only occurred when there was a lay (non-ordained) rector who owned the church lands in the area and appointed a vicar (vicarius = substitute).

Quote:
Originally Posted by Richard Webster
The whole thing is an embarrassment to parish clergy most of whom would rather not get involved and wouldn't have minded at all if the liability had been abolished completely in the Land Registration Act 2003
Well in such case they should not register against any property and issue a deed never to seek chancel against any property.

I have actually seen this in a parish in the Bath & Wells Diocese!

greatgimpo

About £40 will cover ad infinitum for £1m and it stays with the house.