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Chancel liability insurance


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Hi all, just in process of purchasing a house which has got the 'potential' for risk against the chancel costs (ie church coming begging for repair monies etc). My own view is this is total nonsense and would never be put into effect in practise.

In my last two houses I did not have this insurance. However my solicitor has stated it is required by the mortgage company (I'm yet to get that from horses mouth).

Reason for the moan is that the policy's are only £15 (many sites offer these). However these policy's are for solicitors - and my solicitor wants to charge £60 admin fee to arrange (ie press a button). They won't budge on the fee...

I've had a brief look - and it doesn't look like many brokers at all offer chancel insurance direct to the public (and those that do have a broker fee of £50 ish...).

I realise everyone has to make money - but has anyone had experience in getting a decent chancel policy for a fair price / without (what i consider to be) a large admin fee...?

Cheers

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Tell them to go fek themselves, you don't need it and you promise not to go begging

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Our solicitor mentioned this when we moved about 2 years ago - I didn't bother with it.

My view is that if I were to ask my solicitor whether it would be a good idea to get insurance against being abducted by aliens he would probably say something like 'well, I have never heard of it happening but if it gives you peace of mind then it may be something to think about'

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If the mortgage company requires it what choice do you have? Small beers in the grand scheme of things, I wouldn't waste time and just pay it.

I need to confirm that is the case (ie it is insisted as opposed to 'i'm obliged to try and word it as if you need it....').

Totally agree with all the comments - just annoyed over another "admin" (aka doing my job) fee....

But no big deal in the grand scheme of things.

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Andy

I have never heard of an admin fee for arranging it, just the fee for the insurance itself...

and I doubt it's a requirement of the lender...

I guess it depends upon the other costs they quoted...i.e some quote low initial fees but then add on

  • to act for lender
  • because its a leasehold property
  • to do Stamp Duty return
  • if you exchange and complete within 2 weeks of each other

others just quote more professionally up front and are 'more inclusive'

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Hi Stu -

That's very useful - thank you. To be fair they 'appeared' up front - I'll review the written quote today / in addition to speaking to the lender directly and see how it pans out. Thanks for the advice.

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Andy

I have never heard of an admin fee for arranging it, just the fee for the insurance itself...

and I doubt it's a requirement of the lender...

I guess it depends upon the other costs they quoted...i.e some quote low initial fees but then add on

  • to act for lender
  • because its a leasehold property
  • to do Stamp Duty return
  • if you exchange and complete within 2 weeks of each other
others just quote more professionally up front and are 'more inclusive'

Stu -

Top advice as usual. Oddly the mortgage company (checked with two of their underwriters) say it is not a condition!! Called solicitors - admin team tell me it's a condition / a must have - I explain I've called mortgage provider...

... get put through to the solicitor. I deal with all sorts of people in my job - But what an arrogant, patronising, aggressive chap he is! (Presumably because effectively his bluff was called).

Anyway all will be well - mortgage company have emailed him saying it is not required - hopefully job done. Thanks again for the advice.

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In my world there is some poor communication (I spend half my life arguing the t*ss with lenders about trying to get them to apply their own criteria properly)...

As far as solicitors/conveyancers...most need constant pushing and aren't particularly good at being specific about what is, and isn't outstanding (or they sit and blame each other for any delays)...a good one is worth keeping hold of...guess you wont be recommending the one you have though!

Glad you got it sorted :)

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When my daughter bought her house 18 months ago the solicitor did indicate Chancel liability, the insurance was a one off payment for as long as she keeps the house £49.

The Chancel liability lists had not been published and the church had been given 6 months to write a confirmation letter to all domestic dwelling owners if the Chancel liability was applicable to that particular property, that time was up 12 months ago and she didn't receive any letter so now we know there is no liability so the insurance was a bit of a waste.

However, some owners who didn't insure have lost their homes - forced to sell the house to pay a Chancel fee of £100K - just google it.

You should therefore have a letter confirming the Chancel fee is applicable and if so get it insured, for the cost, - and it is a one off fee, its not worth the risk.

Church philosophy is to forgive etc etc - but, don't pay your chancel fees and they will see you homeless rather than forgive the debt.

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Thanks Glyn - I've checked the land registry and there is no registered charge / interest on our title - which is all good. (Totally agree if there was one I would 100% just suck it up - and yes still whine about the admin fee!!).

I see the church can subsequently apply for the rights - but as you say that is beyond the 2013 deadline (given to them in 2002) to register their interest in certain properties - ie at time of purchase it was fine for me.

I can see in the future a similar situation to PPI - where (like me) I've been told to have liability because there is a church within a few miles! and people will be reclaiming the policy costs... (Maybe).

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Well done for getting to the bottom of it. As I said earlier I'd probably have just paid up and not wasted my time. Either you have better perseverance than me or you're just more tight ;)

Don't like the sound of your solicitor though. I'd be giving him a real hard time if he spoke down to me, especially if the conversation was why he had given me bad advice. Always a good idea in these conversations to mention that you might check the position with the law society. That tends to elicit a more amenable attitude.

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Expecting Rev Ken to be contributing to this thread! When I bought a very old cottage a few years ago, I contacted various people in the church (diocese) and was told that it was not applicable in the parish. Where it has been applied, it has always been stated in the deeds that it was a possible charge, so people who have had to pay it would have been aware of the clause when they purchased the house, apparently! I did not pay the insurance.

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