Restrictive Covenant Definitions:
it is what sellers put in place to prevent buyers from altering certain aspects of the property or land
these are put in place to ensure certain standards are upheld
mostly for the benefit of others, especially to the neighbours
it "runs with the land" meaning that these conditions set by the seller are passed on to all future owners, not just the initial buyer
Standard Examples of Restrictive Covenants:
Restrictions on building further structures
Restrictions on access over land
Restrictions on trading from the property
Restrictions on changing the internal structure
Restrictions on alterations without consent
Are leaseholders affected by Restrictive Covenant?
Yes, but they are often more straightforward than those found on freehold properties. Examples of this are as follows:
Not being allowed to keep pets
Not being allowed to sublet the property
Not being allowed to remove or alter internal walls
Not to wilfully cause nuisance to other residents
Restrictions over parking
Running a business from the flat / apartment
Changing the flooring
How do I find out what restrictive covenants are in my property?
Going through the Land Charges Register document will enable you to find out if there are any restrictive covenants imposed upon your property. Most of the time, restrictive covenants will be highlighted and explained, but not always. Consult with your solicitor.
What happens if my solicitor missed a restrictive covenant?
It is the responsibility of your solicitor to made you aware of any restrictive covenants that may be in place during the conveyancing process. You would certainly be within your rights to complain to the Legal Ombudsman if your conveyancer failed to point it out to you. However, the Legal Ombudsman can only award compensation up to £50,000, which may fall short of the costs you incur, depending on the type of restrictive covenant that has been breached.
What if the restrictive covenants are unreasonable, what can I do?
This can involve quite a process, but if you believe that a restrictive covenant found on your property is unreasonable, you may be able to get them changed or removed altogether.
You have three options to choose from:
Contact the party with the benefit of covenant - Explain your situation and negotiate.
Apply to the Upper Tribunal of the Lands Chamber - County courts can be called upon if the restrictive covenant is considered to be either obsolete or unreasonable.
Take out insurance against enforcement of restrictive covenants - this will vary greatly from situation to situation, but many find this course of action satisfactory and its usage is surprisingly common.
What happens if I fail to comply with a restrictive covenant?
Could result in a hefty bill or
Landowner may also ask you to rectify the situation first. This could mean returning the property to its original state (at your expense) or possibly paying them compensation.
What about selling property where a restrictive covenant has been breached?
A solicitor will be able to assess whether the restrictive covenant is actually enforceable and present the best options to you before you move forward. You'll need to obtain restrictive covenant indemnity insurance, but these policies can only be granted after 12 months of the breach happening and if no complaints have been lodged in that time.