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Aston Lawyer
Aston Lawyer, Solicitor
Category: UK Law
Satisfied Customers: 10176
Experience:  LLB (HONS) Over 23 years legal experience specialising in Property law and Wills/Estates
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We have recently renovated a small barn which is located

Customer Question

Hi we have recently renovated a small barn which is located next to our family home to form a 2 bedroom cottage. The barn is a former outbuilding which is included in the main title deeds. We would like to consider renting it out as a holiday let to cover some of the cost of the rennovation. However, there is a restrictive covenant in the transfer deed which reads:
'...not to use the property and each and every part thereof except for residential purposes and only as a single private dwelling and not to carry out any business or profession...'
Would renting it out as a holiday let for part of the year consititute a business?
Thanks
Sam
Submitted: 1 month ago.
Category: UK Law
Expert:  Aston Lawyer replied 1 month ago.

Hi Sam, letting out a property as a holiday let is indeed deemed to be "a business activity" and there is case law on this issue. So, if the restrictive covenant is enforceable, you would be in breach of the covenant if you proceeded. I hope this assists and sets out the legal position. Kind Regards Al

Customer: replied 1 month ago.
How can we determine if it is enforceable?
Expert:  Aston Lawyer replied 1 month ago.

Hi, very good question! Restrictive covenants are a somewhat complicated issue. Looking at the covenant, can you tell me who or what land imposed the covenant and the wording before it says "not to use the property.." (it may say something like "for the benefit of the adjoining land..." ) Al

Customer: replied 1 month ago.
Thanks,
Here it is in full:
Restrictive Covenants by the Transferee
The Transferee jointly and severally covenants with the transferor so as to bind the Property and each and every part thereof into whosoever hands the same may come and so to as to benefit the Retained Land and each and every part thereof the the Transferee and the persons deriving title under them will at all times hereafter observe and perform the restrictions set out below:1. not to use the property ....etc as above.
Customer: replied 1 month ago.
Sorry, I also meant to say that we bought the property from a couple who built a new house on adjoining land to the rear of our property. The retained land comprises the remainder of the original plot including a private road leading to their new house and some green space either side of the private road which forms a boundary between our property and the retained land. The situation of both properties means that there would be no phyisical or visual impact on the former landowner or the retained land.
Expert:  Aston Lawyer replied 1 month ago.

Hi, thanks. The wording is pretty clear that the owner and future owners of the "Retained Land" have the benefit of the covenant, and so my opinion is that it is indeed enforceable. The fact that there would be no physical impact would not change the position. You may just want to speak to them and explain your proposal and see if they have any objection. I hope this helps. Kind Regards Al

Customer: replied 1 month ago.
I don't think that would work. If we chose to ignore the covenant and go ahead anyway, what would they need to do to to enforce and what remedy might they seek? Also, how does renting the barn differ from renting a spare room in our main house via airbnb for example - would that also consitute a business?
Expert:  Aston Lawyer replied 1 month ago.

Hi, well- they would have to take you to Court to enforce the covenant-something I doubt they would do. Letting an individual room is not classed as a business purpose when looking at restrictive covenants. I hope I have answered your questions, and if so, I would be grateful if you could rate my answer. Kind Regards Al

Customer: replied 1 month ago.
Ok Al, thanks,
Sam
Expert:  Aston Lawyer replied 1 month ago.

Thanks Sam. Good luck Al

Expert:  Aston Lawyer replied 1 month ago.

Hi Sam, please don't forget to rate my answer. Thanks Al

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