Chancel Repair Liability

norabarnacle

Hi All

We are buying a house and our solicitor has written to us advising us to take out chancel repair indemnity insurance. Apparently there is an ancient law that means some home owners living in a parish church boundary may be liable to pay for repairs to the chancel within the church. It's not expensive insurance and it's only a one off but I don't think we need it. My internet research is leading me to believe it only applies to churches that were built pre 1836 and our local church wasn't built until after 1900. Does anyone know anything about chancel repair liability?

Thanks

Dan-Dan

Your solicitor?
That`s what your paying him for isnt it?

DaftyDuck

Be very careful assuming you can avoid this liability; if in any doubt, take out indemnity. The costs can be astronomical and unexpected. The delightful C of E will chase anyone they can to collect this money, and there are some very sorry tales of people being reduced to penury through the charges. I avoided a property in Suffolk partly for this very reason. Indemnity was not possible, as repairs to the church were already planned, though not costed.

Dukesy

There should be no 'might be' about it. Either you will or you won't be liable.

When we bought our house, one of the pre-purchase checks done was a chancel check. We have a certificate stating that there is no risk of chancel repair liability at our property. Your solicitor should have run this check and the answer will either be that you are liable or that you are not.

Included with this paperwork is information about insurances had our property been liable - for 25 years protection, it costs between £45 (£100,000 indemnity) - £215 (£3,000,000 indemnity). Why would you not take this out if you are in a risk area?

Aside from that, if you ARE in an area of liability and are relying on a mortgage, the mortgage co will more than likely insist you take out insurance for it.

Angelicdevil

The rules are changing later on this year (October, I believe) which means that you are only liable for Chancel repairs if it is stated on the Title deeds.

This information can be purchased from the Land Registry website.

But yes, your solicitor should be aware of this and be checking.

Mezza1979

yep, i know all about this. we had to agree to the indemnity insurance too for the very same reason.

It was only £50 (purchase price £180k)

No brainer really!

G_M

Dukesy wrote: »

There should be no 'might be' about it. Either you will or you won't be liable.

When we bought our house, one of the pre-purchase checks done was a chancel check. We have a certificate stating that there is no risk of chancel repair liability at our property. Your solicitor should have run this check and the answer will either be that you are liable or that you are not.

Included with this paperwork is information about insurances had our property been liable - for 25 years protection, it costs between £45 (£100,000 indemnity) - £215 (£3,000,000 indemnity). Why would you not take this out if you are in a risk area?

Aside from that, if you ARE in an area of liability and are relying on a mortgage, the mortgage co will more than likely insist you take out insurance for it.

Not so. The whole problem (at present) is that these repairing obligations are not on the Title documents - they are hidden in the church records.

The search can show that you are or are not in an area of potential repairing obligation. It cannot show that you will be liable, only that you might be.

That is why the law is changing (as Angelicdevil says).

The churches have until (I think) October to register any repairing obligation on the Titles of any properties. So after October, if it is not shown on the Title at the Land Registry, you will be safe.

But until October, the Church could still dredge up an old filed document and either hit you with a bill, or register the liability on your Title (for future charge.)

So you could gamble, keep your fingers crossed till October, and then breathe a sigh of relief, or you could insure.

To be honest, the frequency of these charges being imposed is miniscule, and the risk tiny. But a few high profile cases in the past, with very high charges (which forced a few people to lose their homes) has made this insurance a nice little earner for the insurance industry....

http://www.access-legal.co.uk/free-legal-guides/chancel-repair-liability-guide-1758.htm

http://www.secularism.org.uk/news/2012/08/rush-to-register-land-as-chancel-repairs-act-is-modified

DaftyDuck

G_M wrote: »

..... has made this insurance a nice little earner for the insurance industry....

.... and the Church of England!

dzug1

norabarnacle wrote: »

. My internet research is leading me to believe it only applies to churches that were built pre 1836 and our local church wasn't built until after 1900. Does anyone know anything about chancel repair liability?

Thanks

It might not be 'your' church but another nearby church or a previous one in the area that could have the liability

maninthestreet

A property can still be liable for chancel repairs even if this is NOT registered on the property title deeds before the 13th October 2013:

http://radiac.net/diary/id/1301/

Richard_Webster

Originally Posted by norabarnacle
. My internet research is leading me to believe it only applies to churches that were built pre 1836 and our local church wasn't built until after 1900. Does anyone know anything about chancel repair liability?

If they built another Church in 1900 then they probably split the parish - but it is the Church of the parish that the land was in in 1836 that counts - before they divided parishes up.

A property can still be liable for chancel repairs even if this is NOT registered on the property title deeds before the 13th October 2013:

Yes, it is only properties that are sold from 13th October 2013 that become free from liability following the sale if nothing has been registered beforehand. If you buy before that date, even though nothing has been registered, then the liability still remains - although as the years go on it will be more and more expensive and time consuming for the church to find such properties if it wants to collect any money.