'Medieval Scam' could cost Homeowners a Billion Pounds

1.12.06pm UTC (GMT +0000) Wed 9th Aug 2006

British home owners and buyers face extra bills of around £200 each of additional insurance when they buy a home because of an obscure, medieval, rule which makes them liable for the upkeep for their parish church.

Liberal Democrats MP and deputy leader, Vince Cable

Liberal Democrats MP and deputy leader, Vince Cable says that "Half a million homes - which lie within pre-reformation parishes - could be liable for the so called 'chancel repairs' liability following a court case in 2000 when a family had to pay £95,000 to repair the local church when the church council (Aston Cantlow) invoked its historic right."

Estate agents in many areas are now advising home owners and buyers that they must insure themselves; otherwise house sales will fall through when the liability is discovered. Some church councils have already spotted a potential revenue source (most being unaware of the rule) and an insurance business is springing up rapidly to cover risks.

Vincent Cable has written to the Lord Chancellor seeking government support to repeal the liability as quickly as possible. "This is absolutely potty. Large numbers of home owners have a potentially enormous liability attached - imagine if the parish church burnt down - which they do not know about; is not recorded in the land registry; and is simply a legal hangover from the Middle Ages which governments and the church have never bothered to sort out."

Unless they do, some hard up parishes will start trying to enforce the right (as Peterborough is allegedly doing) and agents will muscle in and start generating income from it (as Winckworths, the solicitors are doing). It is also creating a £1billion insurance industry with all the vested interests involved".

Vince went on to say "Only a few weeks after the government was persuaded to drop the sellers' pack, a new scam has been found to rip off home owners and home buyers".

Related Links:

Legal judgement in the Parochial Church Council of the Parish of Aston Cantlow and Wilmcote with Billesley, Warwickshire case.

Link to the Peterborough Diocese who are trying on this "medieval scam".

Link to Winkworths solicitors who are acting as agents in this "medieval scam".

Link to Vince Cable MP website.