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Chancel repair liability
When looking for a home, we consider innumerable things, including location, purchase price, number of bedrooms, size of the garden, and local schools. But issues concerning the local church, if they feature at all, will be way down the list. So, it may be surprising to discover that some properties come burdened with a liability to pay for church repairs called chancel repair liability.
Although a mediaeval relic, some unfortunate homeowners find chancel repair liability attached to the land on which their house sits. Chancel repair liability is a perpetual obligation (i.e. it’s never-ending) to contribute to the cost of repairs to the chancel, the easterly portion of the church where the altar sits.
How did this liability arise?
Centuries ago, chancel repairs were the responsibility of the parish rector, paid for from his tithes. Tithes were a local tax attached to land and payable annually. Over time, monasteries often acquired this land and, with it, the responsibility for chancel repairs. However, Henry VIII’s dissolution of the monasteries saw the widespread dispersal of monastic land. But, any liability for chancel repair remained attached to it. Even today, homes built on this land can be liable.
Liability is ‘joint and several’. So, that means any one of the affected landowners is responsible for the full amount of the repairs. And this might run to tens or even hundreds of thousands of pounds.
The Parochial Church Council of Aston Cantlow v Wallbank
Before 2003, chancel repair liability was all but forgotten. Indeed, the commonly accepted view was that it was unlikely that churches could force property owners to pay up. But in a bitterly-fought case that in 2003 reached the House of Lords (at that time, the most senior court in the country), the court found Mr and Mrs Wallbank, a couple residing in the village of Aston Cantlow in Warwickshire, responsible for chancel repair costs of almost £100,000. In addition, their liability for legal costs was around £300,000! Unsurprisingly, selling their home was the only option.
These days, many churches face rising overheads and reduced income. And with the fabric of many places of worship disintegrating, taking advantage of chancel repair obligations is more tempting than ever for a parish.
Photo of St John’s Parish Church, Aston Cantlow, courtesy of David Dixon.
How do I know if my property is affected?
Given its serious implications, you might think it’s easy to identify properties saddled with this draconian liability. But the waters remain muddied.
Chancel repair liability 2013
A change in the law in 2012 meant churches had until 12 October 2013 to protect their right to chancel repair liability by registering a notice at the Land Registry against affected properties. Around 250 churches registered notices against more than 12,000 properties. Yet that does not represent the full extent of the problem.
First, around thirteen per cent of land remains unregistered at the Land Registry, meaning a church cannot register a notice against it. However, they can register a ‘caution’ against the land, meaning the Land Registry must immediately notify the church of any application for first registration. If the church does not then register a notice, it loses its rights.
Second, churches that failed to register a notice against a registered property by 12 October 2013 can (possibly) still do so. The right is only lost if the property has subsequently changed hands for ‘valuable consideration‘, i.e. for money or something else of value, not as a gift.
Protecting yourself from chancel repair liability
For registered property, a Land Registry search will reveal any existing notice when your solicitor carries out a Land Registry search at the start of the conveyancing process. But even if the church has failed to register a notice, that’s not necessarily the end of the matter. Unless a transfer for valuable consideration has occurred since 12 October 2013, the church can still lodge a notice right up until completion. That’s one of the reasons why your solicitor obtains a ‘priority search’ from the Land Registry before completion. Doing so prevents registration of any interest adverse to yours, including chancel repair liability, for thirty business days. To ensure protection, completion should occur within this period or, failing that, a further priority search should be obtained.
Chancel repair liability search
In appropriate cases, conveyancing solicitors recommend a chancel repair liability search. For a modest fee, the search company reports whether the property is within a parish where a potential chancel repair liability exists. Alternatively, you can search the National Archives.
Chancel repair liability insurance
If your property is exposed to chancel repair liability, you should take out insurance.
The premium for cover varies depending on:
- the type and location of the property;
- whether a notice has been registered; and
- the limit of the indemnity provided.
However, a typical one-off premium for a standard residential property with £100,000 indemnity is around £25.
It’s also worth noting that even if the church has registered a notice, it may still be possible to obtain insurance. However, the premium will be higher, sometimes considerably so.
What should I do if I am notified of a claim against me?
Where chancel repair liability applies, the Church of England advises dioceses and parochial church councils to consider “the pastoral implications of seeking to (potentially) enforce liability against a party who through no fault of their own is ignorant of any liability. This is particularly the case where the liability is a tiny fraction of the whole.” However, that does not mean that the church will not seek to enforce their rights.
The parochial church council is the body that normally notifies you of a claim. You should contact your home insurer immediately. If you are uninsured, contact us as soon as possible. We will check the position to ascertain whether you are liable. And even if you are liable, were you properly advised about chancel repair liability before you completed your purchase of the property? If not, you may have a negligence claim against your conveyancing solicitor.