News & Insights // Conveyancing Liability Solutions Ltd Release New Insurance Products


The unique ChancelCheck® screening report (£11.75 inc VAT) is now complimented by the release of six new ChancelSure® Insurance policies to provide the most competitive and comprehensive indemnity insurance cover available.
 

Fully compliant with the requirements of Part II of the CML Handbook, the new 25 year policies provide full value indemnity insurance against claims for chancel repair liability up to £1m of cover and premiums start from as little as £54. Insurance is available for both residential and commercial property. (See Premium table below)

ChancelSure® Insurance Premiums

(Figures quoted below include IPT at 5% and administration fees of £5.88 inc VAT)

Period of cover 25 years

Limit of Indemnity Residential Premium (2 acres) Commercial Premium (1 acre)
£250,000 £59.88 £155.88
£500,000 £80.88 £355.88
£1,000,000 £99.88 £555.88

Higher value cover can be obtained where required – contact client services on sales@clsl.co.uk or 0872 013 0872. Full details and sample policy are available here.

CML Clarify Chancel Liability Issue

The CML Legal Advisory Committee recently confirmed that chancel repair liability is an issue of concern. Subsequently, the CML have updated the FAQ’s section on their website to help clarify their position, as set out below:

CML FAQ:

Q: What should I do if chancel repair liability is raised during enquiries?

A: Chancel repair liability affects land within a Church of England parish which has a vicar and has a church dating from the medieval period or earlier. It is an overriding interest and need not be on the title documents to affect a property. The Church has been given until 2013 to register liability. It remains the responsibility of the conveyancer to identify where there is potential risk in the first instance. The Law Society's Conveyancing Handbook 2002 states in B 10.6.10.11 "If it appears that liability may exist, a buyer should consider taking out insurance to cover this liability".

General indemnity insurance requirements are set out in paragraph 9 of the Lenders' Handbook.

Warning

  • This risk affects circa 5000 out of 15000 parishes in England and Wales
  • It affects both rural and urban parishes– (Fulham and Hammersmith have a risk)
  • As an overriding interest conveyancers cannot rely on standard searches or title documents
  • Property does not have to be in close proximity to a church in order to be liable
  • The Church is intending to register, where possible, all liable land by 2013
  • It affects the title, value and marketability of property
  • Many 10’s if not 100’s of thousands of properties are affected
  • Checking if there is a parish level liability (at a cost of £11.75 inc VAT) and then insuring the risk is the most cost effective solution for home owners and ensures that the conveyancer has carried out all necessary and appropriate searches
  • Where a property is affected, conveyancers who have failed to screen for the risk may be deemed negligent