Chancel repair liability - are you liable?

Since the case of Aston Cantlow PCC v Wallbank, there has been significant concern about protecting purchasers from Chancel Repair Liability (‘CRL’) mainly due to the level of liability which arose in that case – approximately £350,000 in repairs and legal costs.  However, the uncertain system prior to 13 October 2013 made it necessary to take out insurance in respect of properties where this liability may not in fact exist.

Until 13 October 2013, your solicitor would perform a specialist check for CRL.  This check would indicate whether there was any potential liability.  Where there is potential liability the most cost effective solution was insurance at an acceptable cost, although premiums have risen in the run up to 13 October 2013.

But these profits for the insurance industry look to be on the decrease and the cost of managing CRL risk should be reduced, due to the fact that the transitional period during which CRL remained an overriding interest expired on 13 October 2013.

Purchasers are now able to buy with certainty.  Any purchaser buying land now will not be bound by CRL unless it is protected on the register.  If the CRL is not registered, the purchaser can take on the land in the knowledge that they will not be obliged to pay for any church repairs.  Where the property is registered, your solicitor can perform a search against the registered title which will indicate definitively whether liability exists.  Before completing any purchase, your solicitor will now perform a search of the register which closes that title to new entries for a period so that the purchaser is protected from any eleventh hour registration of CRL.  Where property is unregistered, CRL must be recorded as a caution against first registration, which a search of the register would also reveal.

Where a search reveals registered CRL, the purchaser will have to consider how to proceed with options including withdrawal from the purchase or insurance.

In conclusion

1. Where a search of the register reveals no registered liability, the purchaser has the certainty of being free from any liability for church repairs.
2. Where a search reveals registered liability, the purchasers should consider their options carefully.
3. Current owners of property bought before 13 October 2013 remain bound by any liability, whether registered or not, which may exist in respect of their property.

For more information, please contact David Wybar on 01206 217312 or [email protected].