How to Get Around Restrictive Covenants

If you’ve ever looked into buying or developing property in the UK, you may have encountered a restrictive covenant. These can sometimes make life tricky for property owners, especially if you're looking to develop or alter your home. Fortunately, there are ways to work around them. Let's take a closer look at restrictive covenants and how to navigate them.

What Is a Restrictive Covenant?

A restrictive covenant is a legal condition attached to a property’s title deeds. It limits what a property owner can do with their land or property, often dictating how the land can be used or developed. Restrictive covenants are typically intended to maintain the character of an area or prevent specific developments.

Common Examples of Restrictive Covenants

Restrictive covenants generally fall into a few broad categories, each with its own specific limitations. Here’s a breakdown of the most common types:

Building and Development Restrictions
These covenants prevent or limit alterations to the property or construction on the land. Specific examples include:
- No extensions or loft conversions: Prohibiting major additions or structural changes.
- No new buildings: Banning the construction of additional structures like a garden shed or garage.
- Height restrictions: Preventing the property from exceeding a certain height, which could impact plans for a second storey.
Usage Restrictions
These limit what the property can be used for, often to maintain the residential character of an area. Examples include:
- No business use: Prohibiting commercial activities, such as running a shop or office from home.
- No multiple occupancy: Preventing the property from being rented out as an HMO (House in Multiple Occupation) or split into flats.
Aesthetic Restrictions
These focus on maintaining the visual appearance of the property and surrounding area. Specific examples include:
- No satellite dishes or aerials: Banning visible external installations that could alter the property's appearance.
- No specific building materials: Restricting the types of materials used in renovations, often to preserve the style of the area.
- No boundary walls or fences: Preventing the construction of certain types of boundaries, such as tall fences or brick walls.
Environmental and Land Use Restrictions
These aim to protect shared spaces or the natural landscape. Examples include:
- No removal of trees: Preventing the cutting down of trees or significant alterations to the landscape.
- No livestock: Banning the keeping of animals like chickens or horses on the property.

Each of these covenants serves to maintain control over how a property or plot of land is used, but they can also limit what you can do with your home or land.

Why Are Restrictive Covenants Used?

Restrictive covenants are used to protect the look or function of an area. For example, developers might use them to ensure uniform appearance on a housing estate, or a previous landowner might want to protect their neighbouring lands from overdevelopment. They can also prevent nuisance activities, like stopping a piece of land from being used for industrial purposes in a residential area.

What Happens If a Restrictive Covenant Is Breached?

If you breach a restrictive covenant, you could face serious consequences. The covenant beneficiary (usually a neighbouring property owner or the original landowner) can take legal action. This could result in having to reverse any changes you've made, pay legal costs or compensation, or face injunctive relief, which would legally stop you from continuing with certain actions.

Can Restrictive Covenants Be Modified or Removed?

Yes, restrictive covenants can sometimes be modified or removed, but it’s not always simple. The first step is to check your property deeds or Land Registry records to see if the covenant is still enforceable. You may then consider these options:

Negotiate with the beneficiary: The person benefiting from the covenant may agree to lift it, especially if it no longer serves a useful purpose. In some cases, this may involve a one-off payment or ransom payment.
Apply to the Lands Tribunal: If the covenant is outdated or unreasonable, you can apply to have it modified or removed. This process can be lengthy and expensive, but it's an option if the covenant restricts reasonable use of your property.

Why Would You Want to Get Around Restrictive Covenants?

There are several reasons why you might want to work around a restrictive covenant:

Developing your property: If you’re looking to build an extension, add a conservatory, or make significant alterations, a restrictive covenant could stand in your way.
Running a business from home: If you want to start a home-based business, a covenant that restricts commercial activities could limit your ability to operate legally.
Adding value to your property: Restrictive covenants that limit improvements or extensions can prevent you from increasing the value of your home. By working around these restrictions, you can carry out upgrades or expansions that not only enhance your living experience but also add thousands of pounds to your property’s market value when you decide to sell.
Outdated restrictions: Some covenants were put in place decades ago and may no longer be relevant or practical in today's world. For example, a restriction that prevents you from building a simple garden wall or using modern building materials could feel outdated. Overcoming these obstacles can modernise the property and increase its appeal to future owners.

By removing or negotiating these covenants, you can unlock the full potential of your property, whether that’s through personal use, development, or increasing its future resale value.

How You Can Get Around Restrictive Covenants

If you're dealing with a restrictive covenant, there are several ways to navigate or remove it:

Understand the covenant: Review your title deeds or consult a property solicitor to fully understand the covenant’s terms and who benefits from it.
Restrictive covenant insurance: If the covenant is unclear or enforcement is unlikely, consider taking out restrictive covenant insurance. This can protect you from legal action if the covenant is breached, covering potential legal costs.
Negotiate with the beneficiary: Sometimes, negotiating with the person benefiting from the covenant can lead to an agreement. They may release or modify the covenant, especially if it’s no longer relevant.
Apply for modification or removal: If negotiation doesn’t work and the covenant is causing hardship, you can apply to the Lands Tribunal for a modification or removal. You'll need to demonstrate that the covenant is outdated or overly restrictive.
Get legal advice: Dealing with restrictive covenants can be complex, so it’s wise to seek advice from property lawyers who specialise in this area. They can guide you through the process and help you understand your options.

Sell Your Property with Upstix

If restrictive covenants or other factors are making it difficult to sell your home, Upstix offers a hassle-free alternative. As a property buyer, Upstix provides competitive cash offers and allows you to sell quickly—without the stress of dealing with restrictive covenants, chains, or lengthy negotiations. Get an instant offer and move forward with confidence, knowing your sale is in good hands.

Final Thoughts

While restrictive covenants can be frustrating, they don’t have to stop your plans for developing or using your property the way you want. With careful planning, negotiation, and legal assistance, you can often find ways to modify or remove these restrictions. If you’re unsure of your next steps, consult a solicitor and explore your options, from restrictive covenant insurance to applying for a formal modification or removal.

If you're looking for a faster, simpler solution, Upstix can help you sell your home quickly and with confidence, even when facing restrictive covenants.

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