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It is an archaic overriding interest and about time it was fully abolished. The repercussions from Henry VIIIs actions need to be ended. The reality is that properties with the liability are blighted as commented below by others the Church of England is wealthy and quite capable of repairing the Chancel of Churches.
In reality I'd understood that if a property has changed hands for value once since 13 October 2013 it is now free from that potential liablity once registered. It should be noted the Land Registry made clear that the OS1/ OS2 or Land Charges searches priority period will not prevent a Unilateral Notice being registered (reg land) or Caution (unreg) before or at the same time as registration of a purchase and/or mortgage.
The reality is that there are 5,200 pre- reformation COE00 Churches able to collect the costs of repair of properties on former rectorial land.
The short version of the guidance in circa 2008/9 from the COE Church Commissioners to Parish Church Councils was there is an obligation if pursue liability if liability to pay for the Chancel repairs exists. However, if it would alienate the community of that Parish then the the PCC should not pursue payment.
No real guidance yet clear enough to leave liability hanging over a purchase.