If your solicitor raises restrictive covenants during your property purchase, you’ll want to understand what they are and what they mean for you. Not every property has them, but when they do crop up, knowing the basics helps you navigate the process. This guide explains what they are and what to expect.
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What is a restrictive covenant, and why do they exist
A restrictive covenant is a legal condition that’s been placed on a property to limit how it can be used. Think of it as an old promise that sticks to the land itself, passed on to every owner who comes after. They typically crop up when land is sold off and the original owner wants to protect the character of their remaining land or an estate they’re building.
For example, when a developer sells off individual plots on a new estate, they might add a restriction saying the houses must remain residential only. Or a neighbour selling part of their garden might require that no building work can overlook their windows. Because these restrictions remain legally binding for decades or centuries, they can occasionally surprise buyers who encounter them during conveyancing.
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Finding covenants on your property
If your property has restrictive covenants, your solicitor will identify them during conveyancing by downloading the title register from HM Land Registry. Restrictive covenants appear in what’s called the Charges Register. Sometimes the full wording is in a separate document, which your solicitor can retrieve. The language in these old documents can be dense and refer to property names from decades ago, which is why having professional help interpreting them matters.
Common examples of restrictive covenants
Restrictive covenants vary, but some come up regularly. A common one prevents building extensions or outbuildings without getting permission from a named party. Others restrict the property to residential use only, meaning you can’t run a business from home. Some say you can’t build additional houses on the land or prevent you from parking caravans or commercial vehicles there.
You might also find covenants about maintaining boundary fences or hedges, or restrictions on the type of building work you can carry out. These restrictions were usually created to protect the surrounding properties or maintain the look of an estate, and they’ve simply remained in place as properties have changed hands over the years.
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What happens if you breach a restrictive covenant
Breaching a covenant means using the property in a way that breaks the restriction. Running a business from your home when the covenant says residential use only would be a breach. Building an extension without getting the required consent would be another.
If you breach a covenant, the person who has the benefit of it can take legal action. This might be a neighbour, the original developer, or a management company. However, whether they can enforce it depends on several factors. If the beneficiary can’t be traced, or they no longer own the relevant land, enforcing the covenant becomes difficult or impossible in practice. That said, an old or seemingly unenforceable covenant is still a legal defect on your property title and must be disclosed.
Can you get rid of restrictive covenants
If a covenant will affect your plans, there are options. You can try to negotiate a formal deed of release with whoever benefits from the covenant, though this might require payment. Alternatively, you can apply to the Upper Tribunal (Lands Chamber) to have the covenant removed or modified if it’s outdated, provides no real benefit, or prevents reasonable use of your land. These applications require professional legal advice.
It’s important to know that getting planning permission for something does not override a restrictive covenant. A local authority might grant permission for an extension, but the covenant could still prohibit it. Both planning permission and covenant restrictions operate independently.
Related: When was my house built?
Restrictive Covenant Indemnity Insurance
In practice, indemnity insurance is the most common solution when a restrictive covenant might affect your use of the property. This is a one-off insurance policy that protects you and your mortgage lender against financial loss if the covenant is enforced. If the beneficiary comes forward and takes action, the insurance pays out.
Insurance is particularly useful when you can’t trace who benefits from the covenant, when it’s very old, or when enforcement seems unlikely. Mortgage lenders typically require this insurance before lending on a property with problematic covenants.
How long do restrictive covenants last
This is the important bit to understand. Restrictive covenants don’t have an expiry date. A restriction imposed fifty years ago, or a hundred and fifty years ago, can still be legally enforceable today. Age alone doesn’t make a covenant disappear or become unenforceable.
The practical ability to enforce a covenant often becomes more difficult over time. As properties change hands and original owners move on, it becomes harder to trace who has the benefit of the covenant. But the fact that enforcement might be unlikely doesn’t mean the covenant isn’t there, which is why disclosure and protection measures like insurance remain standard practice.
What to expect during purchase
If your property has restrictive covenants, your solicitor will identify them and explain what they mean for your use of the property. They’ll advise whether insurance or other solutions are needed. While restrictive covenants do come up regularly, not every property has them. Either way, it’s all standard conveyancing work.
If you have questions about restrictive covenants affecting your property purchase, speak with your local Whitegates branch for guidance.
