Chancel Repair Liability - What Is It?
Until quite recently, most solicitors (let alone their clients) had never heard of Chancel Repair Liability. The high profile case of Aston Cantlow – v – Wallbank (2001), decided in the House of Lords, has since changed all that.
This decision revolves around ancient Ecclesiastical Law which affects land within a Church of England parish which has a church dating from the medieval period or earlier (generally considered to be pre-1500). Such a church is entitled to require its parishioners to pay towards the cost of repairs to the chancel of the church. The court case referred to above has clearly demonstrated the impact that the ancient liability can still have on a home owner. Mr and Mrs Wallbank, whose farm is adjacent to the church, have been ordered to pay over £200,000 to the cost of repairs to the chancel plus substantial legal costs. In February 2007, after a seven year legal battle to overturn the initial ruling, Mr and Mrs Wallbank have been ordered by the House of Lords to meet the final demand for payment.
Churches in England have until 2013 to register their chancel repair liability and the concern is that, in the light of this decision, more churches may be tempted to make a claim, either now or in the future.
As a result of the court decision, solicitors acting for house buyers do, as a general rule, undertake chancel check searches to ascertain if the property which their clients are buying has any chancel repair liability. However, because the records at the Public Records Office are incomplete, searches tend either to indicate that the property has no liability or alternatively that the property is located within a historical boundary of a parish which continues to have a potential chancel repair liability. If the search does prove positive, then the normal route to follow is to take out an insurance policy to cover the home owner against the possibility of a claim being made for the cost of repairs to a church chancel. Various types of policies are available, from the “comfort” policy (taken out in circumstances where there may be a liability) and the “identified” liability indemnity policy where a definite liability does appear to exist.
It has been custom for solicitors acting for buyers to ask the sellers of the property or land to cover the cost of the indemnity policy. Up until now, however, most sellers refuse to accept the liability, arguing that the Aston Cantlow – v – Wallbank decision is a “one off “ and the likelihood of any further claim being made is remote. It will therefore probably take a few more similar cases to make the headlines before the question of chancel repair liability is deemed to be a real problem.
If you are about to buy or sell property be sure to take legal advice which will help to alert you to potential liabilities.
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Paul Grindrod