Request for help regarding a covenant

MarshTDP

We are FTBs purchasing a house built in 2001. The original planning permission (covenant) states that no extension should be built within first five years of the initial sale without builder's permission.

However, Vendor's Vendor constructed a conservatory without permission from builders in 2005 (i.e., breach of covenant).

We highly appreciate if some one could let us know what problems we may encounter under these circumstances if we complete the sale.

silvercar

Preferably your buyers, but if not then you, pay for an indemnity policy that covers any loss you could potentially face because the vendors failed to get the consent. Probably cost about £200.

DVardysShadow

Covenant expired in 2006, so the conservatory could be built now without complaint. I see no great need for Indemnity Insurance here.

G_M

Are the builders still around? did they build a number of houses / the estate around you?

i'd guess the purpose of the covenant (nothing to do with planning permission!) was to ensure no extensions were build that might make it tougher for them to sell surounding properties as they were built.

If the estate is complete, and all properties sold, and the builder has moved on, no one is going to enforce this covenant.

MarshTDP

Thanks for all the replies.

Yes, all the houses were completed and the Builder has left.

Hopefully there won't be any problems after purchase.

maria6259

MarshTDP wrote: »

We are FTBs purchasing a house built in 2001. The original planning permission (covenant) states that no extension should be built within first five years of the initial sale without builder's permission.

However, Vendor's Vendor constructed a conservatory without permission from builders in 2005 (i.e., breach of covenant).

We highly appreciate if some one could let us know what problems we may encounter under these circumstances if we complete the sale.

I had the very same thing with my house (the one I bought)! Although I think mine might have been for 10 years and as my house was built in 2001 the covenant still applies. However, the estate agent purchased an indemnity for me as the seller (a company) refused (they were tight-fisted) and the EA didnt want me to back out of the sale for such a small amount. There are quite a few houses on my estate, all built by the same buyer, that now have conservatories.

I think it's quite a common thing and I have had no problems with it. I really dont think you have anything to worry about.

Good luck with the house purchase!

lincroft1710

If you look at this logically there's no problem. The covenant has expired. If builder came along and demands conservatory be demolished it could be rebuilt straightaway so it would be absolutely pointless for the builder to do anything now.

Richard_Webster

Covenant expired in 2006, so the conservatory could be built now without complaint. I see no great need for Indemnity Insurance here.

If you look at this logically there's no problem. The covenant has expired. If builder came along and demands conservatory be demolished it could be rebuilt straightaway so it would be absolutely pointless for the builder to do anything now.

I agree.

Unfortunately I have had cases where buyers' solicitors have not accepted my common sense view that the covenant was not in practice enforceable. Theoretically they will say there was still a breach and the builder could still obtain damages or an injunction in respect of it.

Yes...... but I think the judge would find for the builder and award £1 damages (and refuse an injunction which is a discretionary remedy that is only available if applied for expeditiously) and then the builder would be stuck with the home-owner's legal costs because the home-owner would wisely have paid £200 or so into court which the builder should have accepted!