Chancel repair, HOPP, SCIP Insurance

mbenz1

Hi,

I am in the process of buying a flat and received my paperwork from my solicitor. There were 3 things which they had information on:

1- Chancel repair liability and indemnity insurance - I cant figure out why I would need this?

2,3 - HOPP or SCIP insurance which appears to protect against property fraud. Ive never heard of this. Do i really need it?

What are your thoughts?

Thanks
Ben

argomatt

Is the flat leasehold or freehold?

mbenz1

Its a share of the freehold with a 117 year lease.

maninthestreet

Chancel Repair Liability loses its status as an overriding interest at midnight on 12 October 2013.

mbenz1

maninthestreet wrote: »

Chancel Repair Liability loses its status as an overriding interest at midnight on 12 October 2013.

Thanks, I guess that means a no for that one then.

Any advice on HOPP or SCIP?

Cheers
Ben

maninthestreet

There wasa recent thread on these boards where a buyer lost their entire mortgage monies due to a bogus vendor/solicitor.

Land_Registry

maninthestreet is correct re chancel repair losing it's status as an overriding interest but that does not mean the OI simply ceases to exist.

Here's a link to a current Blog article on our website which also contains links to items on our website around the subject of OIs which also contain specific reference to Chancel Repair - the Landlines article may be of the most interest.

Please note that the issues around OIs can be quite complex from a legal perspective and we would always recommend discussing this with your legal adviser as well.

Richard_Webster

Extract from page referred to by Land RegistryRepresentative:

Therefore even after 12 October, if there is sufficient evidence of such incumbrances on examination of title, we will continue to make a subjective entry of those entries in the register. This means any exclusion of mines and minerals or copyhold entries and chancel repair liability disclosed in the deeds of title will continue to be entered in the register. - See more at: http://blog.landregistry.gov.uk/overriding-interests-deadline-isnt-last-word/#sthash.7HUGFMs2.dpuf

This is what would have always happened - anything that is relevant in pre-registration deeds will be carried over onto the registered title.

However the point is that a buyer's solicitor will be able to see copies of any such documents so will not be unaware of it. At the moment the liability doesn't have to show on the legal title to be binding and so a separate search or insurance is advisable. After the critical date if it doesn't show on the title anyone buying will be free from the liability but it could still affect properties that have not changed hands. If I am wrong then someone please tell me.

This all illustrates the half-baked nature of the change. I suppose it could be said that we should not take away property rights lightly but I think that if Chancel Repair Liability had simply been abolished, most practising anglicans would have been relieved of not having to defend an embarrassing anachronism.

Christianity is not about preserving old buildings, so if a chancel couldn't be repaired then the congregation could meet in the function room of the local pub (and help keep that going), meet in a school or buy a warehouse unit somewhere and use that.

mbenz1

For a fiver I will probably just get Chancel insurance (My solicitor has a block insurance policy regardless of if a search was done for just £5.30)

Can anyone advise on HOPP and SCIP insurance. From what I understand HOPP gives you property fraud cover from the time you buy and ongoing. SCIP gives you property fraud cover for just the time of purchase. The price difference appears to be £260(HOPP) £100(SCIP).

What do you guys have and what are your thoughts?

Thanks
Ben

mbenz1

maninthestreet wrote: »

There wasa recent thread on these boards where a buyer lost their entire mortgage monies due to a bogus vendor/solicitor.

I couldn't find this. Do you have a link?

From doing some reading i think i will go with SCIP.