restrictive covenant against business use.

huggettm · 23 December 2013 at 3:35PM

Hello,

I rent a property that apparently has a restrictive covenant against business use.

I run a small limited company business from home selling fancy dress online - and have deliveries usually twice a day, these vans usually also deliver to the properties on the estate so there is no increase in traffic.

The house remains primarily a residence and I have a letter from the council confirming this and that planning permission is not required. The business is also not actually registered at this address, but it is the mailing address.

However one of my neighbours has been complaining daily to the council and lying about the number of deliveries per day, also lying and claiming that the garage is used as a depot for the business. (which it is not - we do not store any stock).

Due to these lies from our neighbour we have been notified by the landlord that they may be prosecuted for breaching the covenant against business use.

Is this enforceable as we have it confirmed no planning permission is required?

Atidi · 23 December 2013 at 3:58PM

huggettm wrote: »

Hello,

I rent a property that apparently has a restrictive covenant against business use.

I run a small limited company business from home selling fancy dress online - and have deliveries usually twice a day, these vans usually also deliver to the properties on the estate so there is no increase in traffic.

The house remains primarily a residence and I have a letter from the council confirming this and that planning permission is not required. The business is also not actually registered at this address, but it is the mailing address.

However one of my neighbours has been complaining daily to the council and lying about the number of deliveries per day, also lying and claiming that the garage is used as a depot for the business. (which it is not - we do not store any stock).

Due to these lies from our neighbour we have been notified by the landlord that they may be prosecuted for breaching the covenant against business use.

Is this enforceable as we have it confirmed no planning permission is required?

So you have a rental property where business use is prohibited yet you acknowledge that you are running a business from the rental property?

Yes it is enforcable, but if you've lived there for at least 6 months (and its rented under an ASTA as most are) then the landlord doesn't need a reason to evict you.

huggettm · 23 December 2013 at 4:15PM

We have rented property for 10 years.

We previously did not know about the restrictive covenant and are certainly not the only people working from home in the estate.

Atidi · 23 December 2013 at 4:20PM

huggettm wrote: »

We have rented property for 10 years.

We previously did not know about the restrictive covenant and are certainly not the only people working from home in the estate.

Ignorance is no defence.

Two wrongs don't make a right.

huggettm · 23 December 2013 at 4:22PM

okay thanks for the blunt reply - so in your opinion there is nothing that can be done?

System · 23 December 2013 at 5:01PM

huggettm wrote: »

have deliveries usually twice a day, these vans usually also deliver to the properties on the estate so there is no increase in traffic.

huggettm wrote: »

claiming that the garage is used as a depot for the business. (which it is not - we do not store any stock).

Which is it? You get deliveries but they are not stored on site? Which means traffic has increased as you have to move them to where they are stored.

lincroft1710 · 23 December 2013 at 5:05PM

Restrictive covenants are put in place to ensure that one person's usage of their property does not impinge upon another person's enjoyment of their home. Your neighbour considers that twice daily deliveries to your home, 5 days a week, affects his enjoyment. Possibly an extreme point of view, but if this is what he feels, he is entitled to voice his concerns.

Your landlord clearly believes it is enforceable and if this is in fact the case, you have two options, either move or cease the business use. If you can prove the RC is unenforceable you may be able to persuade the landlord to allow you to continue using your home for receiving deliveries.

Savvy_Sue · 24 December 2013 at 2:28AM

Who is the landlord? Private individual? or social?

claret_mike · 24 December 2013 at 11:56AM

Why can't stock be sent to the business address? Is this just a virtual office?

You clearly are "running" part of a business if not wholly at the address. You are in breach of your contract by doing this. Your neighbour has the right to complain if you are doing something you shouldn't.

The easiest solution for this is to find premises where you can have parcels delivered. If you don't want the full expense of premises, why not speak to a local business and ask if they can accept deliveries for you and offer to pay an amount per delivery received or something? You can then go down daily and collect them and do what you need to do with them (as you don't store them at home)?

If you cannot do that then, get your own premises or find a landlord who will let you run the business from your home. Whatever you think - moaning about getting complaints for doing something you shouldn't be doing is not the right answer.

Savvy_Sue · 24 December 2013 at 3:54PM

Savvy_Sue wrote: »

Who is the landlord? Private individual? or social?

And I ask this question because if it's a social landlord, then they will refuse permission to run a business if it would spoil the 'quiet enjoyment' of your neighbours, or cause 'nuisance'. However they should not unreasonably refuse.

I used to work for a Housing Association: you absolutely could NOT do car repairs from your home, for example, but although there was a clause saying you couldn't run a(ny) business, permission would be granted if it wasn't likely to impact on neighbours.

I agree that it doesn't matter what other neighbours are doing: if YOU are in breach of your tenancy agreement then it's your home on the line, not theirs. And two deliveries a day would have some impact - clearly it's been noticed, and you don't know that this person hasn't complained about several other neighbours.

On that basis I'd be looking for a way round this ...

Also note that if it's a private landlord, then you may find that the tenancy agreement says not to run a business because that's a condition of the mortgage. If that's the case, you definitely need to find another solution.

spacey2012 · 24 December 2013 at 4:02PM

You might find this nosy parker next door at home all day is running a scam such as disability, do some digging and look for an opportunity to remind them where the benefit money comes from.