What are restrictive covenants?
A restrictive covenant, in regards to property, is a legally binding limitation that relates to how a property or land is used or what you can do to it. You will find these rules within the title deeds of a property.
These rules are permanently attached to the property, so unlike with planning permission, for example, all owners of that property or land will be bound by the rules of a restrictive covenant.
Common examples of restrictive covenants
Restrictive covenants can cover a wide range of restrictions depending on the type of property and when the covenant was originally created. In many cases, the intent is to protect the appearance, character or value of an area.
Some restrictive covenants prevent homeowners from making structural changes or building extensions without permission from the original developer. Others may restrict how you can use the property, such as preventing homeowners from running a business from home or converting a house into separate flats.
Common examples of restrictive covenants include:
- Requiring consent before building extensions, conservatories or other structures.
- Limiting property use as a private residence only.
- Maintaining the property as a single home rather than separate flats or units.
- Rules on where caravans, motorhomes, boats or commercial vehicles can be stored.
- Rules on the types of animals that can be kept at the property, for example, prohibiting chickens or livestock.
- Having specific requirements for fences, walls and outbuildings.
- Conditions on how the external appearance of the property should be preserved.
- Restrictions on activities that could cause nuisance or disturbance to neighbouring properties.
Although some covenants may seem outdated, they can still remain legally binding many years after they were first attached to the property.
Why are restrictive covenants important for homebuyers?
Understanding restrictive covenants is an important part of buying a property. While a property may appear suitable at first glance, the title deeds could contain restrictions that will affect potential future plans for the home.
For example, a buyer may be planning to build an extension or use part of the property for business purposes, only to find out later that a restrictive covenant prevents these changes. Breaching a restrictive covenant can result in legal disputes, financial costs and, in some cases, court action requiring the homeowner to reverse any work they have done without permission.
This is why conveyancing solicitors carefully examine title documents during the conveyancing process. Identifying restrictive covenants early allows buyers to fully understand the legal obligations attached to the property before fully committing to the purchase.
Are restrictive covenants enforceable?
Many restrictive covenants remain enforceable even if they were put in place decades ago. In most cases, the restrictive covenant benefits another property owner, developer, management company or another party with a legal interest in keeping the restriction.
Whether a restrictive covenant can still be enforced will depend on several factors, including how the covenant was written, whether it continues to benefit neighbouring land and whether similar breaches have previously been ignored. Changes in the surrounding area can also sometimes affect whether the covenant can be upheld, particularly where the character of a neighbourhood has significantly changed over time.
Because every property is different, it is important to seek legal advice if there are concerns regarding an existing covenant or planned changes to the property.
Can restrictive covenants be removed or changed?
In some circumstances, restrictive covenants can be removed or changed, although the process can be complicated. One option may be to get consent from the person or organisation benefiting from the covenant. However, this may require legal negotiations and additional costs.
If consent cannot be obtained, homeowners may be able to apply to the Upper Tribunal (Lands Chamber) to request that the covenant is removed or modified. The tribunal will consider factors such as whether the restriction is still practical or whether it unfairly limits the reasonable use of the property.
In some cases, homeowners may also consider restrictive covenant indemnity insurance. This type of policy can offer protection against potential legal action arising from a breach of covenant, although it does not remove the covenant itself.
How restrictive covenants are identified during conveyancing
During the conveyancing process, your solicitor will review the property’s title register and title deeds to identify any restrictive covenants affecting the property. They will explain the meaning of the restrictions and advise whether they are likely to affect your intended use of the property.
If you are planning renovations, extensions or changes to the property, it is important to discuss these plans with your conveyancer as early as possible. Carrying out the appropriate legal checks before exchange and completion can help prevent delays, unexpected costs and future legal complications.
Restrictive covenants are a common feature of property ownership in England and Wales and can have a significant impact on how a property is used. Although some restrictions may appear minor, others can affect future development plans, business use or alterations to the home.
For homebuyers, understanding restrictive covenants before purchasing a property is essential. Seeking professional conveyancing advice can help ensure you are fully aware of any legal restrictions attached to the property and avoid expensive surprises later on.
