Law Commission proposes to remove archaic Conveyancing searches for Chancel Repair Liability
If you've ever purchased a property in England or Wales, there's a good chance that your conveyancers carried out a 'chancel repair liability' search, or took out an insurance policy to protect against it. However, following recommended reforms from the Law Commission, this archaic liability may soon be phased out so that it only applies to properties where it is explicitly stated on the register.
Historically, since the Protestant Reformation, churches in England and Wales were maintained by two distinct groups. For around 5,200 churches, the 'rector' of a church would be liable for maintaining the area near the altar where sacraments take place (the Chancel), and the members of the Parish were responsible for maintaining the rest of the building. When King Henry VIII famously dissolved the monasteries, all the land owned by rectors of churches was sold, and the Chancel repair liability transferred to the new owners. Since then, much of the land has been divided into individual residential plots, but it remains collectively liable for maintaining the Chancel of the attached church.
Most properties in the UK are not affected by Chancel Repair Liability, and for a while, legal practitioners considered the issue a thing of the past.
However, in 2003, in the landmark case of Aston Cantlow v Wallbank, the Parish Church of Aston Cantlow in Warwickshire demanded that the Wallbanks pay almost £100,000 to repair the church's Chancel. A protracted legal battle ensued, and in the end, the Parish Church succeeded in suing for over £350,000 including costs.
Since this case, it is common practice for conveyancing solicitors to check whether the local parish includes a church where such a liability may apply, and if so, to take out chancel liability insurance. Although each search costs just £30–£40, they collectively amount to millions of pounds spent annually by property purchasers.
The Law Commission's consultation on Chancel Repair will remain open until November, but if their recommended reforms are adopted, Chancel Repair will only apply to a small number of properties where the liability is explicitly noted on the register, eliminating the need for unnecessary conveyancing searches.
At Parsonage and Co, we are always happy to see that the legal system is modernising, especially when it translates into reduced costs for our clients, and we would welcome the Law Commission's recommendations.