When buying a house, various searches are carried out by your solicitor to determine whether the property you are hoping to buy is in fact worth buying. One search that has recently become necessary is a Chancel Repair search.
What are Chancel Repairs?
Chancel repairs originate from an ancient law which inflicts obligations on property owners, whose homes are situated within a parish, to repair and maintain the local church. The church can ask for money whenever it decides the church needs repair and there is no limit to the amount the church can demand.
Around 5,300 churches benefit from this ancient law and unless private individuals who may fall foul of the Chancel Repair Liability have taken steps to identify any potential liability at the time of purchasing their home, they could find themselves in the situation where they are required to pay to repair and maintain their local church.
The Wallbank Case
The revival of this law was brought about by a high profile case of Parochial Church Council of the Parish of Aston Cantlow and Wilmcote with Billesley, Warwickshire v Wallbank (2003).
Mr and Mrs Wallbank inherited a farm which was within the historical parish boundary. When they inherited the farm, they also inherited the chancel repair liability. The Parochial Church Council of Aston Cantlow ("the Church") wrote to the Wallbanks demanding money for repairs. Mr and Mrs Wallbank disputed the claim, however the final judgment found the Wallbanks liable for a bill for repairs totalling £186,986 plus VAT and costs, which brought the total to about £250,000.
What is the position now?
In October 2013 all chancel repair obligations will cease unless the Church has noted their interest in any particular property or land with the land registry prior to this date. This means that the Church of England still has until 2013 to register all land that is liable for chancel repairs and may lead to an increase in demands made by the church.
What can I do to protect against liability?
It is now possible to carry out a preliminary search which will disclose whether the property is situated in an affected area. If the search reveals that there is potential liability either a full search can be made or indemnity insurance taken out.