What is chancel repair liability when buying a house?

Chancel repair liability sounds like a historical curiosity, and in many ways it is. But it can still crop up in a conveyancing file, so it is worth understanding what it is and why your conveyancer might mention it.

What is chancel repair liability?

The chancel is the part of a church around the altar, usually at the east end. Historically, the owners of certain land, known as lay rectors, were responsible for repairing the chancel of the local parish church. That obligation became attached to the land itself rather than to a particular person.

The liability is governed in part by the Chancel Repairs Act 1932. A parochial church council (PCC) with the benefit of the liability can, in principle, require the owner of affected land to pay for chancel repairs. There is no fixed cap, and the amount bears no relation to the value of your property.

The issue came to prominence through the Aston Cantlow case, in which a couple who owned former rectorial land were found liable for a substantial repair bill. That case, decided by the House of Lords in 2003, is why chancel repair still appears on conveyancers' checklists.

What changed on 13 October 2013?

Before 13 October 2013, chancel repair liability was an "overriding interest". That meant it could bind a buyer of registered land even though it was not mentioned on the Land Registry title.

Under the Land Registration Act 2002, that overriding status ended on 13 October 2013. Since then, broadly speaking:

• If the land is registered and the PCC did not protect the liability by registering a notice or caution, a buyer who pays for the property (a purchaser for value) and registers after that date generally takes free of it.
• If a notice is already on the register, the liability continues and binds the new owner.
• If the land is unregistered, the position is less clear, and the liability may still bind until the next sale triggers first registration. Our guide on properties not registered with Land Registry explains why that matters.

There are also some technical points, such as properties transferred by gift or inheritance rather than sold, where the protection may not apply in the same way. Your conveyancer will look at the history of your particular title.

How does a conveyancer check for it?

Your conveyancer will start by reading the official copies of the register. If there is a notice relating to chancel repair, it will normally be in the charges register.

If there is nothing on the register, they will consider whether further steps are needed. The main options are:

A chancel repair search

A search can show whether the property lies within a parish where a liability might exist. It is based on historic records, so a positive result shows a potential risk rather than confirming an actual liability. A full chancel search, which investigates historic records in more detail, is possible but more expensive.

Chancel repair indemnity insurance

Many conveyancers recommend a one-off indemnity policy instead of, or alongside, a basic search. It is usually inexpensive and covers the risk of a claim. Important: some policies become void if you carry out a search first, or if you contact the church about the issue, so always speak to your conveyancer before doing either.

Doing nothing

For registered land that has been sold for value since 2013 with no entry on the register, your conveyancer may advise that the risk is remote enough not to need a search or insurance. Lender requirements can still influence the decision.

What if the register shows a liability?

If a notice is registered, the liability is real and binding. That does not automatically mean a large bill is coming, but you should take it seriously. Your conveyancer may:

• Find out whether the PCC has made any claims or holds information about the chancel's condition.
• Explain whether insurance is still available (it often is not once a notice is registered).
• Discuss whether the liability affects your lender's position or the price.
• Look into whether the liability could be bought out or released by agreement with the PCC.

Some buyers decide to renegotiate, and some decide the risk is not worth taking. Either way, the decision should be made before exchange of contracts.

Who pays for the search or insurance?

The buyer usually pays for a chancel search as part of their disbursements. Indemnity insurance is sometimes paid by the buyer and sometimes by the seller, depending on negotiation. Either cost should appear as a separate item in a properly itemised quote. Our guide to conveyancing costs and disbursements explains how these items are shown.

Does chancel repair liability apply in Scotland or Northern Ireland?

This guide covers England and Wales. The Scottish and Northern Irish systems are different, and chancel repair liability in the sense described here is essentially an English and Welsh concept.

Where to read more

HM Land Registry publishes Practice Guide 66 on overriding interests that lost automatic protection in 2013, which covers chancel repair liability. If your property is in an older village or near an ancient parish church, your conveyancer may also suggest checking other less common property searches.

Does it matter if you are buying with a mortgage?

It can. Some lenders have specific instructions about chancel repair and expect their conveyancer to follow them, which may mean insurance where a search shows a potential risk. Because the policy is usually a one-off premium, many buyers prefer the certainty it gives. Your conveyancer will explain the lender's position and any cost before you decide.

How we can help

A regulated conveyancer will check the title and advise whether a search or insurance makes sense. Explore our conveyancing for buyers or get your free conveyancing quote.

This guide is general information about the law in England and Wales as at the date shown above. It is not legal advice. Every property is different, so ask your conveyancer about your own situation. More in Unusual property searches explained.