What is Chancel Repair Liability?
Estimated reading time 5 minutes
When buying or selling a house, there are always a range of costs to worry about. One that often passes people by is Chancel Repair Liability or CRL. This is largely because for many homeowners, it doesn’t apply. But for those who it does, the costs can quickly get excessive. Chancel Repair Liability is a cost imposed on some homeowners and landowners to help fund repairs for the local church, and unfortunately for some, it’s a perpetual obligation.
It can be a bit of a grey area, with many property owners unsure whether they are liable. In this blog, we’ll answer the common questions, so you know whether you’ll be footing an additional bill or not.
What is a chancel repair?
A chancel repair is a type of repair work carried out in a particular area of a church. It affects the areas of the church that contain the altar and where the Priest and choir may sit.
The liability placed upon landowners and property owners is an old rule, dating back to the reign of Henry VIII. With many older laws, over time, they lose relevance, become more modernised or, in some cases, are no longer applied. Despite how long it has existed, chancel repair liability only saw changes apply to it from 2013 onwards.
What were the changes to Chancel Repair Liability?
Before 12th October 2013, Chancel Repair Liability (CRL) was classified as an "overriding interest" in English property law. This meant it could apply to a property even if it wasn’t officially recorded in the Land Registry. This left some owners liable, and they had no idea.
However, a legal change came into effect on 13th October 2013, meaning churches had until 12th October 2013 to register Chancel Repair Liability with the Land Registry if they wanted it to remain enforceable against future buyers.
If a property has not been sold since that deadline, a church may still register the liability. But once a property has been sold for "valuable consideration" (i.e. bought rather than inherited or gifted), the window for registration closes, and the church loses the right to enforce CRL against the new owner.
This is why, even though only a small number of notices were registered, many properties may still be at risk, particularly if they haven’t changed hands since 2013.
Can I still be liable for Chancel Repair Liability?
Yes. It’s important to remember that Chancel Repair Liability has not been abolished. If a church did not register a notice, it doesn’t mean that they can’t, despite missing that initial deadline.
A church can still register a notice if a property has not been sold since 12th October 2013. Churches were given the right to register a notice up until the next time the property is sold. Known as “valuable consideration,” once a house has changed hands for money, the church loses its right to apply a notice.
You could also find Chancel Repair Liability become a factor if you have been gifted or inherited a property on or after 13th October 2013.
How much does Chancel Repair Liability cost?
If you don’t hold appropriate insurance, it can get costly. A very famous story is that of the Wallbanks. They inherited farmland and discovered it was subject to chancel repair liability. They contested it in the courts (spending more than £200,000 on legal fees), lost, and ended up having to sell their home to cover the chancel repair liability costs and legal bills.
Although cases like this are rare, costs can range from relatively small amounts to significant sums.
How do I know if chancel repairs apply to my house?
If you own the property already and are unsure if chancel repairs apply, you have several options to help you find out:
- Obtain title deeds from the Land Registry. The information here should indicate whether there are any obligations to fulfil.
- Speak to a solicitor. Property law can sometimes be a grey area. It can’t hurt to get expert advice to help clear things up.
- Look at local records. You may find that certain areas of land have chancel repair liability applied to them.
- Get chancel repair insurance. This way, should you find that there is a chance you are liable to pay, you have a degree of protection.
If you are about to buy a house, it is highly advisable to have a chancel search conducted by your conveyancer. It should cost no more than £100, and, in many cases, costs much less. This search discovers whether your new home is located within a parish where chancel repair liability exists.
What will chancel repair liability insurance cover?
Chancel repair liability insurance is an asset and should be considered if you face chancel repair liability costs. Policies are normally quite cheap but will vary in cost depending on:
- If the church has already registered notice.
- The kind of property you live in.
- Where the property is located.
- The level of coverage you want.
Where the church has already registered a notice, premiums are typically a little more expensive.
There are two forms of insurance you could take. If there is a known chancel repair liability, you should take chancel repair insurance. If you are not aware that your home is liable, you could take indemnity insurance. That way, you are protected in the event you do become liable.
Chancel repair liability can soon have you spending lots more money than you had hoped. If you have been caught out and now want a quick sale, speak to our team. At Bettermove, we facilitate rapid property sales, so you sell your house fast and on your terms. Our position as a cash house buyer means you avoid chain breaks, delays and all the stress you find elsewhere. What’s more, we don’t charge you a penny either.
