Chancel Indemnity

Gilbert101

I'm in the process of buying a home and my solicitor has informed me that the search has revealed that there is potential chancel repair liability. They've said because I am obtaining a mortgage (Nationwide) then I am required to obtain an indemnity policy at the cost of around £100, which they say only THEY can do as they are acting on behalf of the lender as well as myself. From what I've read, chancel insurance seems a lot cheaper for others on the forum and they have been able to arrange this themselves. Has anyone else found themselves in this situation? It seems like I only have one option.

Robin9

Don't bother - there isn't a church in the land that will try to pursue a claim - even if they can prove it - after the Aston Cantlow case.

SmashedAvacado

Robin9 wrote: »

Don't bother - there isn't a church in the land that will try to pursue a claim - even if they can prove it - after the Aston Cantlow case.

Its probably not the buyer's choice. If the lenders want it, then you will need it to get a mortgage. Its £100. Suck it up. You're involved in a transaction for many thousands or more no doubt.

But if the seller didnt have it, its legitimate to ask the seller to pay for it - as your offer assumed an unencumbered title.

Robin9

Gilbert101 - you could write to the Parochial Church Council of the Church involved and ask them if they registered a claim before 13 October 2013.

The practicalities of a claim are very bad - imagine a piece of land that has CL but has been sold for housing and there are 500 houses. Is the PCC going to write to all 500 and find that one of them comes back and says "no way - take a running jump - sue me" ?

Querie Nationwide's policy - it's just a money maker.

Gilbert101

Correct, I have no choice in the matter - it's mandatory to have it with Nationwide (I confirmed this with them). Good idea......I'm seeing the seller this weekend so will ask. Thanks.

SmashedAvacado

Gilbert101 wrote: »

Correct, I have no choice in the matter - it's mandatory to have it with Nationwide (I confirmed this with them). Good idea......I'm seeing the seller this weekend so will ask. Thanks.

Ask your solicitor to tell their solicitor that they should pay. Its standard for the seller to pay for insurances to make up shortfalls in the clarity of title. That will keep your relationship with the seller on a better keel.

capital0ne

Robin9 wrote: »

Don't bother - there isn't a church in the land that will try to pursue a claim - even if they can prove it - after the Aston Cantlow case.

https://www.theguardian.com/money/2009/sep/28/glebe-farm-church-bill-sale

tom9980

capital0ne wrote: »

https://www.theguardian.com/money/2009/sep/28/glebe-farm-church-bill-sale

That is 4 years before the 2013 deadline for churches to register.

https://www.lawgazette.co.uk/practice-points/chancel-repair-changes/5040583.article

It is a bit misleading to quote something from 2009

freddielover

my son has literally just had this exact same thing from his solicitor, except he's been quoted £15 for indemnity insurance from the solicitor, with £250 000 cover in perpetuity, again his lender insists on it being in place so he's just sucking it up, not sure he'd be happy with your quote!

Gilbert101

freddielover wrote: »

my son has literally just had this exact same thing from his solicitor, except he's been quoted £15 for indemnity insurance from the solicitor, with £250 000 cover in perpetuity, again his lender insists on it being in place so he's just sucking it up, not sure he'd be happy with your quote!

May I ask who the insurer is?

bouicca21

Nationwide are being daft. The sort of search OP mentions just says that the parish is listed in an index. That is why they are so careful to say ‘potential’ liability. Moving from the index to the document may show a liability on some parts of the parish or may say no liability. If there is a liability it won’t be on the parish as a whole.

Had this come up when we sold my mum’s house. The ‘potential’ liability turned out to be zero because liability had been extinguished by an enclosure act in the early 19th century. My ex’s vendors paid for an indemnity even though doing a proper search showed no liability on the land his house was built on. There was a liability but it was on a small patch of land some 5 miles away.

There are places where chancel liability is a real concern, but mostly it isn’t and there is no way those chancel checks reveal the true position, unless they have been done by a proper researcher.