News Insurance


brokers Challenged to‘uptheir game’forflat owners


churchrepairs can prove costly


legal


ChanCelrepairliability limitedfrom2013


From13 October 2013, chancel repair liability will no longer apply to flats andhousespurchased in EnglandandWales, unless anoticeisregisteredagainst the property in question at theLandRegistry, says lawyer CMSCameronMcKenna.Many homeownersmaynot be awareof this liability,which is an ancient financial charge thatmay be levied againstthemtopay for repairs to the chancel of their parish church. Chancel repair liability was


historically appliedtolandowned by rectors.Whenlandwas sold followingthe dissolutionofthe monasteries in thesixteenth century, the charge passed to thegeneral population andstill


lVT decIsIon


‘Careoftheagent’ addressnotenoughruleslVt


All service charge and ground rent demandsmust have the address of thelandlord clearlymarked on themaccording to a recent decision in theUpper Chamber of theLands Tribunal.Anaddress simply specifying ‘careofthe managing agent’ is not acceptable. In arecentmembercircular,


ARMAreports on the case of BeitovPropertiesLimited vElliston BentleyMartin (Ref. LRX59/2011), pointing to the importance of the ruling for leaseholders and their landlords. The case concerned a landlordwho had taken a lessee to the county court for payment


Flat Living Summer 2012


of service charge debts and the matter hadbeentransferred to theLVT.The lessee didnot appear at theLVT andthe LVTfound thesums demanded reasonable butthenalsodecided that the demandsmade were not valid becausetheydid notcontain the address of the landlord. This was not a point that the lessee had raised at anytime. Thedemands sent by the


landlord’s agent included a statementthatthe address for service of notices under S48 of the Landlord and Tenant Act 1987 was ‘c/o of themanaging


www.landstribunal.gov.uk/ aspx/view.aspx?id=852


agent’.Thiswas foundtobe unacceptable andthe Upper Chamber decision stated that “The purpose of the requirement in section 47 to include in any demand thenameand address of thelandlord, inmyjudgment, is to enable atenanttoknowwho his landlord is, and a namealone maynot be sufficient forthis purpose. To provideanaddress atwhichthe landlord canbe found assists in the process of identification”. To read the full decision go to


applies tomany homes around the country. In 2003, a landowner was forced


to payarepairbillofaround £200,000 plus costswhen they contested the liability. Because it is hard to tellwhetherornot the liability will apply to a property, due to incomplete parish registers, homebuyersare generally advisedtohaveachancel repair searchcarried outand to take outinsurance covertoprotect themfroman unexpected and potentiallyhefty bill if liability is identified. However, allthiswillchange


next yearwhen the lawchanges andthe righttoenforce chancel repair liability will no longer constitute an ‘overriding interest’.


Thismeans that after 13 October 2013,homebuyersinEngland andWales will notbeaffected by theliabilityunless it is protected by aregisterednotice.However, CMSCameronMcKennawarns thatwhere a notice or caution has been registered,the rightto claimchancel repair costsfroma propertyownerwillpermanently affectthe land.Landacquired before 13 October2013willalso continue to be affectedindefinitely. What thismeans in practice is


that anyone buying a newhome after that date will be savedthe expense of a chancel search. If the liability to paytowards chancel repairsexists, in future it will be shownagainst theproperty’stitle at the Land Registry.


Midway InsuranceServices Ltd is challengingotherinsurance brokerstoimprove theservices they offer in theblocksofflats marketwiththe launch of their updatedflatsproduct “Ultimate Flat Owners”,underwritten by Aviva. Paul Robertson, Midway’s


Managing Director explains that thebuildingsinsurance market for blocks of flats is one of thefew remainingsectors that fails to offer its end customers competitivechoice. Duetothe unique nature of blocks of flats, the insurance policy is usually arranged by thefreeholderand most flatownershavelittlechoice or influence in the placement of theirbuildingsinsurance,despite the fact they pay the premium. “It’s timefor other brokers to


up their game,” he says, adding that they need to improveinthree


specific areas by: nimprovingthe levelofadvice


they give; nunderstanding the needs of theirclients andselling them


appropriate products; and nimproving the claim handling service they offer. Paul believes brokershave


aresponsibility to ensure flat owners receive a fair deal. Too many policies are sold on price alone, he says, with insufficient considerationgiven to theproduct andhow it suitsthe need of flat owners,who arethe ultimate beneficiary of blocks of flats buildings policies. Phil Bayles, Broker Distribution


and Performance Director at Avivasays:“Weare delightedto be supporting Paul and his team at Midway with thelaunchof theirnew ‘Ultimate FlatOwners’ product…Welook forward to building on ourlongrunning partnershipwithMidwayto continue to deliver a high value, greatquality offering.”


Paul robertson 13


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