BUYING A NEW HOME - Guide to Chancel Repair Liability

There is a possibility that the property you are proposing to purchase may be affected by a potential "Chancel Repair" obligation to the local Parish Church.

Such obligations stem from mediaeval times where land, previously owned by the Church, had been sold and the new owner took on the repairing obligation attached to that land. Basically, any property located within the boundaries of a parish where such a liability exists could be "caught".

The penalty is financial in that it involves having to pay for the upkeep and repair of the chancel of the local mediaeval parish church. The liability runs with the land and does not have to have been registered against the title of a property in order to be enforceable by the Church of England. This liability is an “overriding interest” and will bind you even if not registered.

After 13 October 2013, the liability will no longer constitute an overriding interest and be binding. Because of this, we understand that Churches are instructing their solicitors to register their rights so that they don’t loose their right to claim this liability from property owners in the future.

How do I know if this affects the property we wish to purchase?

Two searches are available:

We can undertake a ‘full chancel search’ if you prefer which will confirm whether your property you are proposing to purchase is affected by such liability. If liability is revealed, we will be obliged to register the liability at the Land Registry.

A cheaper alternative is a ‘chancel check search’ which provides an instant screening report that will confirm whether of not the subject property is within the boundary of an historical "risk" parish that could charge and/or register the subject property. The downside with this search is that it does not show whether or not the property is located on land that has this responsibility but merely whether it falls within a parish which does contain land which is subject to such a liability. If the property is identified as being located in a “at risk” parish it will be necessary to obtain insurance to cover the risk.

Can I insure against this liability ?

Yes. We have negotiated a special premium with Conveysure a specialist in this area of liability, for an indemnity insurance that will cover you and your mortgagee against any such demands being made to you. The policy will last indefinitely. 

We have a block policy and you would be added to that policy upon completion and a copy of the schedule placed with the deeds or forwarded to you following completion.

Are there any restrictions upon obtaining insurance?   

Elliot Mather will not be able to issue a policy in any of the following circumstances, and we would obtain a bespoke quotation if:

• you are aware of any liability
• a full chancel search indicates adverse results
• there is an express liability registered or noted in the deeds

Please remember to let us know if you are aware of any such liability affecting the property.

Next steps ?

If you are not aware of any liability, we strongly advise you to take out insurance. Joining our block policy with Conveysure is the most cost effective way to do this, and we will include this cost in your quotation. The policy will also cover future buyers and mortgagees so you will also avoid difficulties on resale or if re-mortgaging.

However, you are not obliged to take out insurance and can tell us if you prefer to undertake a full search or chancel check search.

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