Chancel Repair Liability

Mani_London

Thanks @Densol. I am just waiting for vendors solicitors to answer our pre contract enquiries and will take it from there. 

Natbag

I've sent back the form to say we will just buy the insurance, no question, for £29 including VAT it's just not worth the stress/risk.

Mani_London

Thanks @Natbag I am just waiting for vendors solicitors to answer the enquiries raised so we can get on with this. They are being lazy and sitting on trivial enquiries since 10th of February. 

TN1984

1. Have you seen the land registry entry? Is there any mention of Chancel Repair Liability on it?
2. When was the property last sold?

Mani_London

TN1984 said:

1. Have you seen the land registry entry? Is there any mention of Chancel Repair Liability on it?
2. When was the property last sold?

Hi @TN1984: 
No i have not seen the land registry entry. I am FTB and i know this enquiry has been raised along with small other from my solicitors. 
The property was lost sold in 2015 and now i am middle of buying this. 

TN1984

Mani_London said:

TN1984 said:

1. Have you seen the land registry entry? Is there any mention of Chancel Repair Liability on it?
2. When was the property last sold?

Hi @TN1984: 
No i have not seen the land registry entry. I am FTB and i know this enquiry has been raised along with small other from my solicitors. 
The property was lost sold in 2015 and now i am middle of buying this. 

The land registry is available to anybody for £3 online if the solicitors are not playing ball (surprised your solicitor did not go through a copy with you early on in the process though). Essentially, as it was sold in 2015, if it is not mentioned on the land registry entry, the church has no claim.

Previously even where it was not mentioned on a property's land registry entry, it did not necessarily mean Chancel Repair Liability did not apply, as it was an overriding interest. There was then a change in law (cannot immediately recall the name of the legislation), which I believe was in response to the Wallbank case, and churches were given until 12th October 2013 to register their interest with the land registry. I think the expectation at the time was any property where it was not registered by that date would then be in the clear, and it would be more easily identifiable in future as to where it was relevant. However, technically a church can still register their interest where a property hasn't changed hands for 'valuable consideration' (i.e. it has been legitimately sold and not gifted).

Realistically if a church has not registered it at this point, even if they technically could, they clearly have no intention of doing so. A lot of churches when the deadline to register was given did not want to enforce it and applied to the Charity Commission not to do so. I understand many of the churches that did register it, felt obligated, even though they have no plans to enforce it. The problem is the entry on the land registry deed makes insurance either unobtainable or very expensive, and in turn could make a mortgage harder to obtain.

To be honest, it is highly unlikely it is on the title here (it is extremely rare for this to be the case), and it is almost certainly a 'possible' search result that happens all the time. In which case, nothing to worry about. You can pay the insurance premium if it will give you peace of mind, but as above, it will not be needed if it is not on the land registry entry. In the very unlikely scenario it is on the land registry title, I would consider very carefully if you want to proceed. 

Context for the above; I am not a solicitor but I have read a lot on this subject as a year ago it scuppered my own purchase on a property. In that case it WAS on the land registry entry, which made insurance virtually impossible (my solicitor tried his 3 usual providers, all said no) and my lender (Santander) at the time refused to lend on the property because of the charge on the title.

Mani_London

Hi @TN1984: Thank you very much for your detailed reply. I have downloaded the Title Plan and Title register from Land Registry website and i am unable to see any thing which says Church or Chancel in charges area? Do you know or have a rough idea what it should say in case it is registered on land registry. By the looks of it it doesn't say anything. 

TN1984

Mani_London said:

Hi @TN1984: Thank you very much for your detailed reply. I have downloaded the Title Plan and Title register from Land Registry website and i am unable to see any thing which says Church or Chancel in charges area? Do you know or have a rough idea what it should say in case it is registered on land registry. By the looks of it it doesn't say anything. 

Something along the lines of:
"(12.06.2013) UNILATERAL NOTICE affecting the land in this title in respect of a liability to repair the chancel of <CHURCH NAME>."

If there is nothing like that on the land registry, then you're fine as it has sold since 12th October 2013. Your solicitor might still recommend you buy an indemnity and it's so cheap you might decide to for peace of mind, but I wouldn't bother personally.

Mani_London

Thanks @TN1984 I can see there is nothing of that sort mentioned there. I have received the reply from solicitors and he said we will get indemnity insurance just in case. Thank you for your help. Really appreciate that