Chancel repair liability on deeds (so "known" not "potential!) can you get indemnity insurance?

(14 Posts)
impecuniousmarmoset Wed 27-Feb-13 17:58:01

Ah I see, it does seem unusual for it to be stated in the deeds, but if it relates to a neighbouring parish that might explain it. All the same, in more usual cases there is no doubt about things either. We live in an area with a parish church and we have definite chancel liability, there is no 'probable' about it even though it isn't on the deeds. The insurance was a couple of hundred quid.

Labracadabra Wed 27-Feb-13 17:50:15

Hi impecuniousmarmoset, the reason this is definite liability is that the liability is stated in the deeds (and it's not even for the parish the property is situated in, it's the next one along) so there's no doubt about it. There has been no demand for chancel repair payment but this is what we'd be insuring against (and this is why the quote is £580 not £20 or so!). Hope that clarifies it! Thanks

impecuniousmarmoset Wed 27-Feb-13 16:10:33

I have no specialist knowledge but im not sure I get your distinction between possible or definite liability. Either you are in an area with a church and there is liability, or you aren't, surely? The hypothetical is entirely over enforcement, which is what you can insure against. To my mind definite liability would mean there was an actual chancel bill there waiting to be paid- which obviously no insurance would cover, but that us not your situation here.

CocoNutter Tue 26-Feb-13 23:51:25

I may be wrong, but I'm sure there was something similar in ours and it cost about £20..?!

Labracadabra Tue 26-Feb-13 20:35:05

Thanks everyone, really great to hear you got it covered. Our solicitor got a quote for us and has passed it to vendors solicitor asking vendors to pay it. Not sure what they'll say but it does seem like the their responsibility to pay it as otherwise they have a worthless house!

Toomuchtea Tue 26-Feb-13 09:03:45

You can insure against it. The house we just sold had a definite liability in the deeds, and we had evidence of it being exercised by the church just after the Second World War. We sent off copies of all the documentation to the insurers, and then decided how much cover we wanted. It cost around £300 for cover for £1,000,000 for us and for our successors in title.

Our buyers asked 1,001 questions about all sorts, but the chancel liability thing didn't worry them in the least, and they were the most risk averse buyers I've ever dealt with!

spotty26 Mon 25-Feb-13 21:31:30

Sounds like an insurable risk to me so do not worry.

CMOTDibbler Mon 25-Feb-13 19:37:58

I can't remember if ours is in the deeds, but you can insure against things where there is a definate liability - for instance, people insure against someone enforcing a covenant where they have knowingly breached the covenant

Labracadabra Mon 25-Feb-13 19:33:00

Thanks CMOTDibbler, do you also have liability written in the deeds or was it just that your house was in the parish so "could" be liable?

Labracadabra Mon 25-Feb-13 19:32:03

Our solicitor hasn't actually read the documents yet as he <only> got them today but I emailed him after I'd read them, pointing out what they'd said and he said "we can arrange insurance for chancel liability risk" but I think he's missed the point as this isn't a risk of liability, it's definite liability as it's on the deeds :-(
I'll call him tomorrow but thought someone might have advice beforehand!
Thanks both

CMOTDibbler Mon 25-Feb-13 19:29:13

yes, you can take out a policy, and its not that expensive. I think ours was £150 for 20 years or some such, but you can easily get quotes

georgedawes Mon 25-Feb-13 19:24:22

What does your solicitor say?

LIZS Mon 25-Feb-13 19:21:25

Policy would be against enforcement not t he liability itself, so should be insurable.

Labracadabra Mon 25-Feb-13 19:18:42

We're buying a house and today our solicitor sent through the deeds plan and vendor's documentation. I read the document and the vendors have said that the deeds mention that there is chancel repair liability for the church in the next village (about 2-3 miles away). I've checked the title deeds and it's true :-(. The PCC have "informally" said to the vendors that they wouldn't pursue liability from properties outside the village in which the church is situated, but of course they're entitled to do what they want and that's no guarantee. As the liability is "known" not "potential" is it possible to take out insurance and does anyone have an idea of rough costs for the policy? The purchase price is £287,000. I've read that having this on the deeds makes the house "worthless" and "unsaleable" so we don't want to land ourselves with that. Should the vendor take out the insurance/cover the costs instead? We're on a tight timeline and it's taken over a year to find this property so don't really want to pull out (no similar properties available) but we will if there's no other option. Thanks

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