Chancel Repair Liability

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Chancel Repair Liability

Background to Chancel Repair Liability

Chancel repair liability (“CRL”) originated in the sixteenth century and it is defined by the Land Registry as, “the requirement for an owner of land to pay for the repair of the chancel (the part of the church containing the altar and the choir) of an Anglican parish church.  Where previously the local rector owned land in the parish, he was responsible for repairing the chancel out of money the land produced.  Monasteries often acquired this land together with the responsibility for paying for the repair of the chancel.  When Henry VIII sold the monasteries’ land, the liability to pay for the repair remained with the property sold.”

For many years it was considered unlikely that churches would be able to enforce a CRL and the potential for liability was largely ignored.  However, in the landmark case of Aston Cantlow v Wallbank and another [2003] UKHL 37 the House of Lords decided that this was not the case and ruled in favour of the church. The judgment cast CRL into the spotlight and from that date onwards, it became a common consideration for conveyancing practitioners. 

Prior to 13 October 2013, CRL was considered an overriding interest which meant that it would continue to affect property regardless of whether the liability was noted within the title.  It became customary for lawyers to conduct a CRL search when acting for a purchaser/lender.  The search determined whether or not the property lay within a parish with a potential liability.  In the majority of cases where a potential liability was determined, an indemnity policy would be taken out to protect against the risk of future financial contributions. 

Changes to Chancel Repair Liability since 13 October 2013 

In an attempt to make property registers more comprehensive, since 13 October 2013 CRL ceased to be considered an overriding interest under the Land Registration Act 2002 (“LRA 2002”).  As a result, further protection is now required in order to enforce a CRL.

Registered Land –

The right to request payment for chancel repairs should now be protected by a notice in the register.  It was possible to enter a notice of this nature (prior to 13 October 2013) without the payment of a fee.  In the majority of cases, the applicant would have been the Parochial Church Council (for English churches) or the Representative Body of the Church in Wales (for Welsh churches).  These two organisations will continue to make applications as a notice can still be entered on the register after 13 October 2013 if there has been no change of ownership since that date.

The right to demand payment will continue to bind the owner of registered land which was purchased (or voluntarily registered) prior to 13 October 2013 until it is sold to a third party.  This right does not have to be protected by a notice in the register. 

The purchaser of land for valuable consideration will now take free of any liability for CRL if it has not been protected by notice on the title at the time an application is made for an official search with priority.  However, if a property is transferred for no consideration (for example: transferred as a gift or an inheritance or following insolvency) the transferee will take the land subject to CRL even if the same has not been protected by notice on the title.  In this instance a practitioner should still obtain a CRL search.

Unregistered Land - 

It is possible to protect the right to request payment for chancel repairs by lodging a caution against first registration.  As is the case for registered land, it was possible to make this application prior to 13 October 2013 for no fee, however, a caution can be entered at any time after this date on the basis that there has been no change in ownership since 12 October 2013 and the land remains unregistered. 

The right to request payment for CRL will continue to bind the owner or unregistered land until the property is sold to a third party or it is voluntarily registered. 

As of 13 October 2013, a transferee will take free of any liability if CRL has not been protected by notice in the register at the time of compulsory first registration. 

Existence of a notice on the register after 13 October 2013

If the title does reveal that the property is definitely subject to CRL, indemnity insurance is still available against any future financial demands.

Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.

 

For further information, please contact Andy Parker at