Is chancel repair liability insurance really compulsory??!?

ValHaller

Richard_Webster wrote: »

I agree completely with this.

Now the risk is only there for people who haven't bought since 13/10/13 - i.e. most of us. So those selling the insurance now have to concentrate on trying to frighten existing property owners.

As for asking a mortgage lender about it, forget it - they simply will not understand the technicalities.

But Richard, your quote is ambiguous as to what you are agreeing with.

Are you sure that a priority search will prevent CRL being registered? I have this thought that a priority search might prevent a lender who has been defaulted on from actually registering. But as I see it, the church's right derive from elsewhere and I am suspecting that this right will be valid right up to sale. In which case the church may have a reasonable basis to claim that priority searches should not override their rights?

miss_undastood

I am so annoyed that my solicitor lied to Barclays and didn't tell them the whole truth. The law seems fairly clear cut to me on this one

As we are buying post 13/10 there is no liability

ValHaller

miss_undastood wrote: »

I am so annoyed that my solicitor lied to Barclays and didn't tell them the whole truth. The law seems fairly clear cut to me on this one

As we are buying post 13/10 there is no liability

There should be an 'almost certainly' in there. Your tiny risk is that the church registers liability between the search and completion.

Richard Webster - who is good on these things - appears to have addressed the question, but I am still concerned that a Priority Search is not sufficient to void the rights of the church on this one.

[Deleted User]

£300 is outrageous. My solicitor told me (when I was going to buy before October - haven't checked with her since) that insurance would cost about £70. Which insurance company did you go with, out of interest?

miss_undastood

First title

miss_undastood

We were told it was linked to house price and mortgage term (35 years)

ey143

This is relevant to me too. Chancel Sure have quoted me £185 (for a house priced at between 500k and £1m) for perpetuity cover, plus a further charge of £100 odd for registration by the conveyancing firm.

Can you pls share the details of the chancel insurance company you used? Like you I am not happy about paying this fee especially as the date has passed but if its relatively cheap at <£50, then I will take it out myself directly. My law firm however are giving me an option and not forcing me to take it out and the lender's lawyer has indicated that they will not require it. My firm will just enter an OS1 and ensure again upon registration of my name on the title that no church has registered a liability.

Thanks.

Land_Registry

ValHaller wrote: »

There should be an 'almost certainly' in there. Your tiny risk is that the church registers liability between the search and completion.

Richard Webster - who is good on these things - appears to have addressed the question, but I am still concerned that a Priority Search is not sufficient to void the rights of the church on this one.

I note that G_M referred to my presence in an earlier post but had not picked up on the thread until now

It may help to clarify what our procedure is for dealing with an application to register the liability in the form of a Unilateral Notice between the official search (OS1) and registration of any transfer/lease for value (disposition)

It should be emphasised of course that we cannot provide legal advice but we can explain our procedures in general terms. Each and every application would also be treated on merit but in general terms the following explains things

1. If the search and UN1 were lodged pre 13.10.13 and the protected transfer or lease for value (disposition) post 13.10.13 we will contact the parties. If they do not object pursuant to s73 of the Land Registration Act 2002 we will register the disposition and enter the unilateral notice (UN) at the date of the lodgement of the disposition.

The registered proprietor can still apply to cancel the notice at any time by lodging a UN4. If the pending new proprietor objects to the entry of the notice and the parties cannot resolve their dispute it will be referred to the Property Chamber, First-tier Tribunal.

2. If the situation is that the OS1, UN1 and disposition are lodged post 13 .10.13 we will register the disposition and enter the UN as at the date of the lodgement of the disposition. Again the registered proprieotr can apply to cancel the notice at any time lodging UN4.

3. If there is a dispute between the parties about whether or not the UN should be cancelled this will, in the absence of agreement, need to be referred to the Tribunal for judicial determination.

I hope that helps to ecplain our procedures and to emphasise that if the issue is disputed then it would be an issue of law and not Land Registry procedure which is likely to decide on any outcome.

Doc_N

Knowing somebody who's recently been served with a notice by the local church, and the impact that's caused, I can vouch for the 'value' of insurance - if only it had been taken out. Too late now, of course - and the loss of goodwill by the church could well cost it more in the long run.

ey143

It depends if you have had it confirmed that there is a liability or not. Having exchanged last Friday and completed yesterday, an OS1 search indicates that nothing has been placed on my title deeds despite being in a potential chancel liability area. Given the deadline has now passed, its not now possible for them to make any claim (on my property).