Restrictive Covenant to Single Family to use as HMO

spaceace007

We hope someone can help.

We are looking to buy a house to let out. It is likely that we might let it as a House in Multiple Occupation (HMO) at some point. This wouldn't be an HMO that has to be licensed, just a property with around four or five unrelated sharers - possibly more if we extend.

The property is ex-Council and has a Restrictive Covenant in favour of the Council stating "Not to use the property other than as a private dwellinghouse for occupation by a single family ...". This appears to be a common covenant in ex-Council house sales.

Looking around the net, there are differing opinions on how to deal with this covenant:-

1. Ignore it and see if anyone pursues the covenant. Not favoured by us as my guess is that the Council will find out and it appears that a claim for breaching a covenant can be expensive.
2. Approach the Council and ask them to remove it or at least that they wouldn't pursue it.
3. Apply to the Land Tribunal to have it removed/whatever as it may be preventing a reasonable use of the property and/or is a somewhat outdated restriction with the shortage in housing.

There is a Restrictive Covenant insurance policy we believe to be in force to cover against claims for breaches of any Restrictive Covenants but I would think that even though it might cover our costs in any legal action, we might have to return the property to a single family house as a result. Also, the policy appears to have an exclusion if the property is altered or extended without the insurers consent.

For what it's worth, another covenant on the property is not to park any motor vehicle on the front of the property, and many home-owners have obviously changed their front gardens into driveways and park on them.

Does anyone have any experience of dealing with such a situation?
Should we try contacting the Council anonymously to get ther reaction?

daisygirlmac

Can't help with restrictive covenants I'm afraid (although I suspect you will find it extremely difficult to have removed, afaik most restrictive covenants are there to stay)

I think you need to really look into your local council's requirements for HMO licensing. From what you say (4 or 5 unrelated sharers) it sounds like it would DEFINITELY be a HMO and as such would need to meet the standards your local council set and have the appropriate licensing in place.

spaceace007

Thanks daisygirlmac for your suggestions.

We've looked into HMO licensing in the area and know that an HMO is only a mandatory licensable one if it's on more than two storeys. The local Council don't require operate additional or selective licensing (thankfully!).