Hi, I'm interested in buying a property which has a restrictive covenants on the land which ristrict any changes or alterations to the existing bungalow on the land. The land has great development potential though and is for sale freehold. The issue is that the covenant was sold to a third party who will not release them. The third party claims that they are happy for the development to take place and will write a letter to confirm but will not release the covenant. This will be a re-sell nightmare! So why is the owner of the freehold not entitle to the covenant on their land? Any assistance appreceated..
Province/Country relating to question : UK
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Apologies, I’m new to this and I can’t seem to find your answer
Hi, so have you any advice on the matter? Is there any legal entitlement to the covenant by the freeholder or am I completely at the mercy of the third party who owns the covenant (should i proceed with the purchase)
(IF i were to proceed with the purchase)
I do not seem to have been provided with an answer
Hi,I'm not sure what happened there. My response seems to have disappeared into 'Chat'.A restrictive covenant is a type of, promise concerning the use of land (a real covenant) and a legal obligation imposed in a deed by the seller upon the buyer of property to do or not to do something. Such restrictions frequently "run with the land" and are enforceable on subsequent buyers of the property.A covenant such as this is quite common where a developer has developed a particular area and then imposed restrictions upon future development. The covenant is legally binding and will prevent any future buyer from developing without first obtaining the consent of the party that has imposed the covenant (in this case the 3rd Party).I note what you state regarding the provision of a letter, however, there is no guarantee that they will not ask for a huge sum of money to provide the consent.To remove a covenant, you will need obtain the consent of the other party or make an application to the Lands Tribunal under Section 84 of the Law of Property Act 1925. The Act authorises any person who has an interest in any freehold land affected by any restriction to make an application to the Lands Tribunal.The Latter option is by no means straight-forward and is extremely costly and lengthy.I hope this answers your question. If so, kindly rate the answer and provide feedback.Many thanks,
Hi,If I have answered your original question, kindly rate the answer and provide feedback. If you do not, I do not get credit for my time. Many thanks,
Thank you but I did find your answer very generic and I do not feel that you have told me anything new. I had already found similar comments on the web to those provided. For a fee, I was expecting more, like for instance, a brief description of said process involving an application to the Lands Tribunal. Or indeed, a recommendation of alternative measure, indemnity insurance for example?
Thats fine.What else would you like to know?
More information on the same issue?
Like what?If you could list your specific questions, that would help me greatly?Many thanks
Can I take out indemnity insurance to protect me?
If so, how would it actually protect me, what exactly would it insure me against?
Have you any idea of the sort of cost usually associated with suchinsurance cover?
Would the indemnity insurance be against the covenant andtherefore transferred on to future purchasers of the land/property, as with the covenant itself ‘run with the land’ ?
There must be alternative measures suitable for this legalissue?
Hi,You possible could take out Indemnity Insurance to protect you, however, you should be really careful as some of the policies are not worth the paper they are written on.Policies could cost a few hundred pounds and fees vary between providers. You would be best served obtaining a few quotations.The indemnity insurance would be against the property and the benefit will pass to future buyers.I hope this helps. If you wish to discuss, please feel free to ask further questions.Kind regards,
Aside from the indemnity insurance, do you know of any other measures which could be taken for this legal issue?
Could you also breifly explain the proceedure of removing a covenant by application to the Lands Tribunal under Section 84 of the Law of Property Act 1925?
Hi,An application to discharge or modify a restriction is made by completing and filing Form LPA with the Tribunal. The application must contain all the information required by the Rules. This includes identifying both the land that is subject to the restriction and the land that has or may have the benefit of the restriction and the identity of any person known or believed to have the benefit of the restriction.The subsection(s) within section 84 on which the applicant relies for the discharge or modification must be stated. It is essential to provide details of the reasons and facts on which the applicant relies to establish the ground or grounds for discharge or modification.You will have to file all relevant documents with the application. These specific documents are listed on form LPA and include a plan which identifies both benefited and burdened areas of land and a copy of the document which created the restriction, including a copy of any plan originally attached to that document, which must be the same colour as the original plan.You should also file a Statement of Case at the same time, to avoid delay.There is a fee of £800 payable to the 'Tribunals Service', on filing the application. Other fees are payable during the course of proceedings. Besides Indemnity Insurance and making an application to the Lands Tribunal, there is not much else you can do other than obtain the other party's consent to the removal of the covenant.I hope this helps. If so, kindly rate the answer and provide feedback.Many thanks.
LL.B, Pg.Dip LPC, LL.M, Higher Rights Civil, M.B.A (Pending)
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