Fri, 26 Aug 2022 | Chancel Repair Liability
So, you’ve found your dream home and your offer has been accepted – hurrah! But during the transaction, your solicitor tells you that your new property is at risk of Chancel Repair Liability. Say what?!
If you haven’t heard of Chancel Repair Liability before, you’re certainly not the only one. Find out what Chancel Repair Liability is and why you might need to get insurance for it in this article.
What is Chancel Repair Liability?
Chancel Repair Liability is an ancient law requiring some property owners in England and Wales to pay for repairs to their local parish church – whether they attend the church or not. It means that if you own a home or commercial property near a medieval parish church, you could be at risk of being charged for chancel repairs. This pertains to any part of the church containing the altar and the choir.
The law dates back to Henry VIII’s reign when, after the dissolution of the monasteries in 1536, a large amount of land previously owned by the rectories came under lay ownership. The new owners took on the responsibility to pay for church repairs just as the former owners had – and this responsibility has been passed down throughout the centuries to owners of properties built on the same land.
Liability is ‘joint and several’, meaning that any one of the affected landowners could be called upon to cover the full amount of repairs, or it could be split between a small group of houses, meaning that households could end up forking out thousands of pounds. This resulted in an unfortunate case in 2003, where a couple in the village of Aston Cantlow in Warwickshire were held responsible for chancel repairs racking up to almost £100,000. They were not aware that their home was subject to chancel repair liability at the time.
In an effort to identify properties that were subject to chancel repair liability, the Government implemented a change to the law in 2012, which gave churches until 12th October 2013 to register a notice at the Land Registry against properties affected. This led to around 250 churches lodging notices against over 12,000 households.
How do I know if my property is at risk of chancel repair liability?
It would be reasonable to assume that, with so much at stake, properties at risk of chancel repair liability would be made readily identifiable. Unfortunately, it is not so simple.
Chancel repair liability might be listed on the title deeds to your house, but this is not always the case, and you cannot assume that a property is free from risk just because it is not stated on the title deeds. A Land Registry search, carried out by your solicitor at the beginning of the conveyancing process, will reveal whether a property is registered for chancel repair liability. You can also pay for a ‘chancel check search’, which will tell you whether there is a possibility that the property is liable but cannot say for sure whether it is registered.
Even if the searches show that a notice has not been registered, this does not mean that the property is not at risk. The law states that churches that failed to register a notice against a property before 12th October 2013 can still do so as long as the property has not since changed hands for ‘valuable consideration’ (meaning for money or something of value, not as a gift). In this case, the church has until completion to lodge a notice.
Your solicitor should carry out a ‘priority search’ from the Land Registry within 30 business days of completion. This search prevents registration of any interest that is opposed to yours, so as long as you complete your purchase within this time period, you will be protected from chancel repair liability. If completion doesn’t take place during this time, an additional priority search should be carried out.
How do I protect myself from chancel repair liability?
You can take out chancel repair liability insurance to protect yourself from chancel repair payments. The insurance varies in price depending on at which stage in the transaction you take it out.
If you haven’t had a search carried out and are only insuring against the possibility of chancel repair liability, you can get chancel indemnity insurance for a relatively low price due to the low risk level.
If you have had a search and have been made aware that you are liable, or that there is a possibility that you could be, the insurance will be more expensive. In some cases, chancel indemnity insurance might be cheaper than getting a chancel check completed; your solicitor will advise you on which route to take.
Chancel repair liability insurance can also vary in its coverage. Read your policy carefully: some provide coverage for 25 years, some cover you for as long as you own the property, and some cover the property forever.
When it comes to chancel repair liability, your best bet is to speak to your solicitor. Operating on a case by case basis, they will be able to talk you through the risks and advise you on the best course of action to take to protect yourself while also keeping costs low. In most cases, chancel repair liability is nothing more than stage in the transaction process and should not put you off chasing the property of your dreams!
Need a solicitor? Book an appointment with one of our industry-leading conveyancers by clicking here.
Looking for properties in Berkshire, Surrey or Hampshire? Register with your local office today to be the first to find out about properties you’ll love in the area.
If you’re thinking of selling your property, click here to book a valuation with your local experts today.