Guide to Restrictive Covenants.

Restrictive Covenants on a property will affect what you can do with your property, and can be applied to private or commercial property; it is possible that the nature of the restrictive covenant will affect the value and marketability of a property, so it is important to understand the implications of having a restrictive covenant on a property.


What is a Restrictive Covenant?

A Restrictive Covenant is a clause in a deed or lease that restricts the use of a property, we are only looking at restrictive covenants on property but they can also appear in other area such as employment.

if you were to breach the covenant you can be taken to court to enforce the covenant.

Typical example of Restrictive Covenants.

A developer may wish to maintain the look of a development and restrict certain types of building on it, such as adding another floor to a property, building a perimeter wall or restricting development within a certain distance from the boundary.
I live in a house next to a restaurant which has a restrictive covenant to prevent playing music too loud or too late.The intention of the covenant is to maintain the value of other properties as well as environmental considerations.

How do I know if a property has a Restrictive Covenant?

You should be made aware of any covenant by your solicitor when you buy the property, but don’t assume they will tell you, ask them.
You will have no defence if you breach the covenant and use the excuse that you did not know, when you buy the property you are doing so in the knowledge that you have read and understood the terms of the purchase.

What happens if I do breach the covenant?

It’s possible that a legal professional will be able to help; perhaps the covenant has not been drawn up correctly so the covenant is unenforceable.
More often than not it’s only when a dispute occurs that a covenant become apparent, having to comply with the covenant can be expensive, you may have to take down a development or extension.

It is possible that the covenant can be lifted or you may be granted permission under ‘retrospective consent’ but fees will apply and its possible part of that will be compensation for those party to the covenant.

If you do not obtain an amicable solution you may have to go to court to resolve the issue.
If you do find yourself in this situation it would be advisable to take legal advice as soon as possible.

How can I get the covenant removed?

Speak to your solicitor first as you may be able to overcome your problem with an indemnity insurance.

If not you can appeal for a covenant to be removed or changed by filing a request with the Lands Tribunal, to be successful you must meet certain criteria-

- If the covenant is outdated
- If the covenant serves no useful purpose
- If you have the agreement of the beneficiary
- If the intended beneficiary no longer benefits from the covenant.

You can file the application yourself or speak to a solicitor; the Lands Tribunal can be connected via the gov.uk web portal by searching tribunal property chamber.