Friday, 19 December 2008

Chancel Repair Liability

What is Chancel Repair Liability?

We receive a number of enquiries on this issue which arises in all residential purchases and sales.

It refers to an ancient interest benefiting many Parochial Church Councils in England and Wales which requires owners of former rectorial land to meet the cost of repairs to the Church Chancel.

What is the Church Chancel?

This is the area where the rector (the parish priest) officiated. The duty of repairing the property belonging to the Church fell on the owners of the properties within this area.

So why has the question of Chancel repair become such an issue?

In June 2003 there was a case heard by the House of Lords called Wallbank v Parochial Church Council of Aston Cantlow and Wilmcote which stated that the Parochial Church Council could claim a contribution from the Wallbanks towards the cost of the repairs required to the parish property.

Who is liable for Chancel repair?

Whenever we act for you in the purchase of a property or land we will carry out a preliminary search to establish whether or not the property you propose to purchase is situated on former rectorial land.

The search will either confirm that the land is, or is not, within an area that may have a potential liability. If the result confirms that the land is not within such an area then no further steps have to be made.

What if the search confirms that the land may be within an area with potential liability?

We will then discuss the following options with you:

  1. You obtain a Chancel repair indemnity policy and ask the seller to meet the cost of this. If they refuse to do so, you can pay the premium yourself.
  2. We obtain a more in depth search which may provide more certainty as to whether there is, or is not, such a liability.
    There is a slight drawback with this particular course of action. If the search indicates that there is such a liability and you decide to proceed with your purchase, we would be under an obligation to notify the Land Registry who will record an entry against the title to the property which could cause problems on a future resale or re-mortgage of that property.
Will this effect future transactions?

At the present time any liability to make contributions binds successive owners of a property even though there may be no entry recorded on the title register at the Land Registry. However, the Land Registry have stated that the Parochial Church Council has until 13 th October 2013 to register their interest against properties. If they do not make the registration by this date, then any purchaser of land to which the liability previously attached will not be subject to it – current owners will, however, remain liable.

Contact Charlotte Parry-Jones on 020 8300 9321 or cparry-jones@wmk-law.com alternatively Contact Us

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