Chancel Repair Liability – key takeaways
· Chancel repair liability is a historic legal obligation requiring certain property owners in England and Wales to contribute to the cost of repairing the local parish church.
· Legal changes in 2013 required churches to register their right to claim chancel repair costs by 12th October 2013.
· If a church did not register its interest by that date, the liability no longer binds future owners of the land. However, the current owner may still be liable until the property is sold. The protection under the 2013 changes only applies to those who acquire the property on or after 13th October 2013.
· Only ‘successors in title’ who benefit from the change in the law from 13th October 2013.
· Your solicitor can carry out a search to determine whether your property may be affected.
· If your property is subject to chancel repair liability, you may be able to obtain insurance to cover any potential future claims.
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This refers to the historical obligation of some property owners in England and Wales to pay towards the cost of repairs to a local church. Some important changes were made to the law in 2013, which altered the liability of homeowners. In this article, we will consider a range of questions we are often asked about this issue.
What is Chancel Repair Liability?
This refers to the historical obligation of some property owners in England and Wales to pay towards the cost of repairs to the chancel of a nearby parish church.
Before the liability to repair fell under common law, it was the responsibility of the rector of the parish church. The purpose of chancel repair was originally to ensure the upkeep and maintenance of the chancel area within Anglican churches in England and Wales. The idea was to share any costs between agricultural landowners, homeowners, institutions and the Church.
What is a Chancel?
A ‘chancel’ is not the whole church; rather, it refers to the area around the altar that is often located on the eastern side of the building. The ‘chancel’ sometimes includes the area where the choir convenes in addition to the sanctuary. Chancel repair dates back to the 16th century in England, during the reign of Henry VIII.
How our team can help with Chancel Repair issues
Here at Bonallack & Bishop Solicitors, we understand that many homeowners are concerned about their potential liability for Chancel Repair costs. Many are also unsure of the changes to the law in this area in 2013, and this affects them.
If you find yourself in a dispute on this issue, please feel free to speak to one of our friendly property Solicitors, who can advise you on your legal rights and what you can do next. Depending on your circumstances, we can assist you with resolving your issue, including:
· Carrying out comprehensive searches with the Land Registry to determine if your land has a Chancel Repair Liability
· Recommending a Chancel Repair Liability Insurance policy
· Assessing your liability to pay towards Chancel Repair if a claim has been made
· Assessing whether your existing Chancel Repair Liability Insurance policy covers you
· Resolving any dispute that arises out of court or in court
· Bringing a claim for negligence against your conveyancers if they failed to explain the implications of a Chancel Repair Liability on your land.
How many homes are affected by Chancel Repair Liability?
The number may surprise you. It is estimated that there are around half a million homes affected by this in respect of around 5,200 pre-reformation churches in England and Wales.
What happened to the Chancel Repair law in 2013?
A change in the Land Registration Act 2002 (LRA 2002) in 2012 required for churches to protect their right to chancel repair by the cut-off date of 13th October 2013. To do so, they had to register a notice with the Land Registry regarding the affected properties. At the time, an estimated 250 churches registered notices for 12,000 properties.
This meant that, until 13th October 2013, the right to enforce a chancel repair liability was enforceable under the law, regardless of whether the property owner was aware of their liability or not. Since 13th October 2013, the right to enforce a this kind of liability is only enforceable against a new property owner if it was protected. As we will see in the next section, however, affected homeowners still have a potential liability.
Is Chancel Repair liability still an issue since the changes in 2013?
Despite the change to the LRA 2002 in 2012, Chancel Repair was not abolished. It remains an issue affecting many homeowners, even if they are unaware of this fact. Homeowners should be aware that:
· Even if a church fails to register to protect its right to chancel repair against a specific property, the current owner will remain liable until that property or land is sold. The key point to bear in mind is that only ‘successors in title’ benefit from the change in the law from 13th October 2013.
· Churches cannot register their right to enforce a chancel liability in relation to property that is unregistered with the Land Registry. Instead, they can register a ‘caution’ against first registration. A caution against first registration enables a church with an interest in unregistered land to ensure that they will be notified of any application for first registration with the Land Registry in respect of that land.
Am I liable for chancel repair?
The good news is that the majority of homeowners are not liable for chancel repair.
However, you may be liable for these potential costs if you own a property in a parish in England or Wales near an Anglican Church. Likewise, you may be concerned that you may be liable for these kind of costs because others in your neighbourhood are.
This type of liability should be picked up during the conveyancing process by your solicitor.
If you are not aware of any chancel repair liability but you would like to double-check, the first step is to request a property search. You can ask your property Solicitor or conveyancer to do this for you.
What is a Chancel Repair Liability Search?
Chancel repair liability insurance is normally taken out with a specialist insurer, usually through your conveyancing solicitor although it may be possible to take out a policy directly with the insurance company.
There are two types of searches:
1. A chancel Check
2. A full chancel search
A Solicitor can request a chancel check to verify whether your property is within an area where property owners may be liable to cover the cost of repairs for a local parish church chancel. This does not identify if the actual house is liable for chancel repair costs, however.
Depending on the outcome of the search, the report provided will typically confirm whether there is a risk of potential liability or not. These particular searches look at a range of sources to determine the risk of liability, including historical parish boundary data, maps, land registry, and records held by the National Archive.
If necessary, your Solicitor can then request a full chancel search to identify if the specific property has any liability for these type of repair for these type of repairs.
What is chancel repair indemnity insurance?
This kind of insurance protects policyholders from liability for the cost of chancel repairs for their local church. Despite the changes to the law in 2013, many homeowners and landowners still take out this particular kind of indemnity insurance in case they are faced with a large, unexpected bill. A type of insurance policy called ‘No search chancel indemnity insurance’ offers protection if you are liable, but no search was carried out.
Another type of policy is available if you know about a specific chancel liability and wish to be protected from a potential claim in the future.
It is important to check how long the policy runs for (i.e. for a fixed duration, the length of time you own the property, or forever). You will often find that the policy only covers the named buyers for the duration of their ownership of the property.
While indemnity insurance will not stop a church from seeking costs for chancel repair where they are entitled to do so, if the policyholder makes a successful claim, they can be reimbursed for repair costs and potentially any reduction in the value of the insured property.
Who pays for this kind of insurance and when?
Chancel repair liability insurance is typically paid by the insured to the insurer as a single one-off upfront payment. It does not need to be renewed annually. The amount of the premium will depend on your risk profile. For example, if are not aware of any liability but you wish to be covered in case you face a claim, the premium is likely to be less than if you have a known liability identified in a search.
What happened in the case of Aston Cantlow v Wallbank 2003?
Aston Cantlow v Wallbank 2003 is a landmark legal case which resulted in a couple receiving a substantial bill for chancel repairs and legal costs. The case concerned Andrew and Gail Wallbank, who received a notice for £95,260 from the Parochial Church Council (PCC) of Aston Cantlow to fund repairs of a medieval church in Warwickshire.
The couple’s case rested on the argument that PCC was a public authority under the Human Rights Act 1998, and enforcing such liability was a breach of their right to peaceful enjoyment of property under Article 1 of Protocol 1 of the European Convention on Human Rights (ECHR). This states:
“Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law. The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties”.
The House of Lords concluded:
· The PCC is not a core public authority. Rather, it is a hybrid or functional public authority, and only when it performs public functions.
· Enforcing chancel repair liability was not a public function; it was a private law matter concerning the ownership of land and property obligations.
The effect of the PCC not being a public authority was that the case was not a Human Rights matter, and the liability to cover the cost of the repairs was valid.
The House of Lords ultimately found in favour of the PCC, resulting in the Wallbanks footing a large bill for chancel repairs and legal costs of around £350,000.
