What is Chancel Repair Liability?
‘Chancel repairs’ relate to old laws about who pays for the upkeep of the local church. Buyers of certain properties in England and Wales could be taking on responsibility for maintaining the local church, whether they attend church or not.
For some homeowners, if chancel repair liability applies to the property, the chances of receiving a bill from the local church are relatively small. However, some unlucky homebuyers could be billed for hundreds of thousands of pounds.
Chancel repair liability shouldn’t catch out people who bought a property or land after 2013 as the rules changed then. However, it is a complicated area of law and it is still possible to be landed with a bill.
Where Do Chancel Repairs Come From?
Chancel repair liability is a payment that homeowners must make if their property sits on land that is liable for church repairs. This financial obligation is issued by the Parochial Church Council. The chancel is the easterly portion of a church where the altar is situated.
These laws can be traced back to the establishment of the Church of England when Henry VIII sold monasteries to buyers. This resulted in the transfer of the chancel’s repair responsibilities from the monks to the new owners. However, the liability for chancel repairs remained attached to the land.
What Does It Mean for Homebuyers?
Chancel Liability Repair tends to apply to older homes in England and Wales. However, it’s still a risk that needs to be assessed before buying any property.
Some repair responsibilities can extend to land relatively far from the parish church in question. These responsibilities are perpetual – meaning they are never-ending – and are passed on when a property is sold. They also apply well when a property is knocked down and rebuilt as it is the land the property sits on that holds the liability.
Homebuyers need to be aware of the fact that chancel repair liability is ‘joint and several’. This means that any one of the affected homeowners is responsible for the full amount of the repairs and this could end up being thousands of pounds.
Churches don’t often ask for payments so it’s possible that sellers of affected properties may not be aware that the property has a chancel liability. This means it’s up to buyers - or their conveyancer or solicitor - to do their research before the home is purchased.
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How Did Chancel Repair Rules Change in 2012?
In 2012, the UK government reviewed chancel repair liability and introduced some changes intended to make it easier to identify affected properties.
The new rules meant that chancel repair liability had to be registered at the Land Registry by 13 October 2013. Churches were advised to register that the liability existed, whether or not they planned to bill homeowners.
If the church didn’t register a notice by 13 October 2013, it didn’t mean it couldn’t register a liability later on. However, the right was usually lost when a property changed hands for ‘valuable consideration’ – i.e. was sold.
If you bought a property on the open market after October 2013 and the church hadn’t then registered a notice with the Land Registry, you probably won’t receive a surprise bill for chancel repairs.
However, if you received a property as a gift or inheritance, owned it prior to October 2013 and still own it now, or you know that chancel repairs apply to your property, you could still be liable for the cost of repairs.
Chancel Repair Liability Searches
Your solicitor or conveyancer can carry out a chancel repair liability search during the conveyancing process to reveal if the property you are looking to buy is liable for chancel repairs.
They may suggest this search if the property you are buying is within the parish of a church that dates back to 1536 or earlier.
There are two main types of chancel search:
- A ‘chancel check’ report will reveal whether a property is within a parish where a potential chancel repair liability exists.
- A ‘full chancel search’ will involve a search agent visiting the Public Records Office to inspect maps which will reveal if your property is liable for chancel repair.
How much does a chancel search cost?
A chancel check search is relatively inexpensive, costing about £20 plus VAT. A full chancel search is more comprehensive and will cost about £100 plus VAT. This search can take longer to complete and in some cases, may not come back with a definitive result.
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Chancel Repair Liability Insurance
If a chancel repairs liability is present, or you're not sure if your property is liable or not, you will usually need to get an indemnity insurance policy to protect both you and your mortgage lender to cover any costs should a claim be made by the church.
This type of insurance is normally known as:
- Chancel liability
- Chancel repair liability insurance
- Chancel repair
- Chancel insurance
- Chancel indemnity insurance
This insurance protects you from any costs you’d have to pay to the church, including legal expenses. It covers any repairs you’ll have to pay for, so you’re not caught out by a large bill out of the blue.
There are two kinds of chancel repair insurance. The first is suitable if a full chancel search has not been done and you want to insure against the possibility of being liable.
This insurance is normally about £20 – often cheaper than getting the search done.
If there is a known liability that you’re aware of, you can insure against a claim being made. This type of cover is slightly more expensive, normally costing upwards of £40.
Is chancel repair insurance a one-off payment?
Indemnity policies typically cover you for £1,000,000 – which should be sufficient cover for most realistic claims.
Chancel repair insurance policies vary in how long they last. One of the following will normally apply:
- The policy will last ‘in perpetuity’ (forever)
- The policy will cover you for 25 years
- The policy will cover you for the duration of your ownership of the property
Learn More About Conveyancing
This article has been part of our conveyancing guide. The next article in our series is all about conveyancing disbursements. To find out more read what is an engrossment fee.
