Legal Property Experts

in association with Penman Sedgwick LLP

Karabo Mclean-Salmon Chartered Legal Executive - Residential Property

Residential Property And Restrictive Covenants

What are they and how do they affect your property?

Restrictive covenants are legal provisions which limit or forbid certain actions on a property, for the benefit of another’s property. They are ‘negative’ in nature and are created by landowners and incorporated into the “deeds” (also known as title documents). If the title to a property is registered at the Land Registry, the Title Register will refer to any covenants affecting the property, and they will be brought to your attention by your Conveyancer during the purchase transaction. You might expect to find restrictive clauses in the title documents for leasehold properties, where a landlord owns the freehold interest. However, many freehold properties across England and Wales are subject to restrictive covenants, and whilst many restrictive covenants originate from deeds that are decades old, it is important to note that most of these covenants run with the land indefinitely, and not individual owners.

What is the purpose of these covenants?

Restrictive covenants vary in nature and purpose, but are typically imposed to prevent alterations (for the purpose of uniformity), or to prohibit unwanted behaviour that may become a nuisance to neighbouring properties.

Some of the most common examples affecting residential properties are listed below:-

Ø Use of the property restricted to a private dwellinghouse occupied by a single family

Ø Prohibition of running a business from the property

Ø Prohibition of erecting a shed or greenhouse

Ø Prohibition of parking motorhomes or commercial vehicles

Non-compliance with restrictive covenants

If breach of covenant occurs, you may be forced to pay damages or face other legal action. If there has been a continuous breach lasting over 12 months or more, you may be able to obtain insurance for breach of restrictive covenants to protect you and future owners against any enforcement action (which could be very costly).

There are complex rules relating to the passing of the ‘benefit’ and ‘burden’ of restrictive covenants: you should take legal advice on the enforceability of such covenants in the event of a breach.

Will they affect my ability to resell the property?

The parks and open spaces in the Borough provide a place to unwind, exercise and relax. Retaining these Green Flag Awards is testament to the hard work and dedication of the teams and volunteers that make the green spaces a place for everyone to enjoy.

Councillor Paul Seeby, Broxbourne Council Cabinet Member for the Environment, said: “I am delighted that Broxbourne has retained these Green Flag Awards. I’d like to thank all those that work within the Borough’s parks, particularly the huge numbers of volunteers, working in all weathers to make our parks and open spaces somewhere to be proud of.”

This largely depends on the nature of the covenants. The more restrictive and onerous the covenants, the less appealing a property may become to potential buyers. This can ultimately affect the value of the property. You should carefully consider these covenants and how they might affect the plans you have for the property, and take legal advice.

If you need legal advice, we can help.