Convenants? Do they ever expire?

moonbeam1983

Thanks for your advice Richard, but could you explain a little more about indeminity policys please?

HOw exactly do they work? Our solicitor did mention one.

Richard_Webster

Thanks for your advice Richard, but could you explain a little more about indeminity policys please?

HOw exactly do they work? Our solicitor did mention one.

Usually buyer's solicitor gets the seller's solicitor to confirm his client will pay for one which is then organised on completion by one or other of the solicitors - doesn't matter which. Policy benefits whoever owns property and runs forever, but may need upgrading if the value of the property rises.

If you get someone claiming the benefit of the covenant and threatening to take action you pass the matter over to the insurers who fight the case. In the extreme situation where the complainant cannot be bought off with a small nuisance value payment and wins a case then they pay the damages or the loss in value of the house if you have to undo the work involved.

Most of the time it is a disgruntled neighbour and if the breach is more than a year or two old he wouldn't get an injunction to have the work undone but only damages. These damages would represent the loss to him in amenity and value to his property. In most cases where there is an extension or conversion of a garage this would be pretty small - a few hundred pounds perhaps.

moonbeam1983

Thats great. Thank you for the advice. Makes things a bit clearer!

Rob_192

On the question of planning and building regs - planning is only required in certain circumstances. Properties usually have what known as permitted development rights, these allow you to do certain things without requiring planning consent, things such as adding an extension of up to 15% the volume of the original house (providing it doesn't extend beyond the building frontage and is less than 4m high), or build a small porch etc. A garage conversion would usually fall into this catogory, however you only have the 15% allowance on the original size of your property, ie you can't keep adding 15% each time, only up to 15% of the original volumn. If you have done any other extension, you may already have used up your allowance.

Also, be careful as some planning consents remove the permitted development rights (where the issue of overlooking etc may become an issue). Furthermore, if the property is in an area of outstanding natural beauty or a conservation area, then these rights will not apply. And finally, if your garage is counted as a parking space then you will need to apply for consent as you can't reduce the parking allowance under the permitted development rights.

In terms of Building Regs, these will be required to ensure the thermal insulation and fireproofing measures are all complied with. There are two methods of applying for this, Full Plans or Notice. If it's complicated or if you need plans for other purposes (ie tendering the job to contractors) then go Full Plans, if it's relatively simple then the Notice proceedures allow you to just carry on subject to giving notice to the Building Inspector to come and inspect at various stages. The fee to the Local Authrity will be the same in either case.

Covenants are only enforceable between the original parties, which is why they are pretty daft ways of controlling things in the longer term. If the developer has ceased to be then you should be OK, but obviously check with a solicitor. Even if a neighbour is relying on the covenant to stop you doing something, he will have no means of enforcing it, only the original developer can do that.

R

roger196

Richard_Webster wrote: »

If the covenant says that you cannot change a garage to a habitable room without the consent of the original building company and that company has been dissolved then the covenant can be ignored.

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I came across a case where the liquidator of the building company sold on the value of the covenants. They have value in that a fee can be charged to release the homeowner from the restrictive covenant.
Would the covenant still be enforceable by NEWCO or were they just trying it on.

timmyt

Even a covenant naming a builder and that builder goes bust is not the end of it. A building scheme can also be in play too (I.e where each plot owner can enforce aginst the other). ONly once the actual document is studied will it become clearer, but the usual rule is that it is live, and expect all your neighbours to be able to enforce it.

Yes, indemnity will provide a cheque for loss in value of your home, clearly not the best solution to a future intended breach, as you dont know who will come out of the woodwork.

Richard_Webster

Covenants are only enforceable between the original parties, which is why they are pretty daft ways of controlling things in the longer term. If the developer has ceased to be then you should be OK, but obviously check with a solicitor. Even if a neighbour is relying on the covenant to stop you doing something, he will have no means of enforcing it, only the original developer can do that.

Wrong! Positive covenants to do something: maintain a fence, pay a sum of money, etc are only enforceable between the original parties but restrictive covenants which in substance prevent something being done are enforceable by the owners of any land that can be shown to have the benefit of them. This was decided in a case called Tulk v Moxhay in the 1740s about Leicester Square in London.