Half way through extension but covanent restricts it

jonnyb1978

Friend is half way through an extension with full planning permission. He has just received a letter from an estate trust saying they notice planning permission has been sought and they look forward receiving written permission from my friend.

My friend was unaware of a covenant in place. The estate trust seem work on behalf of an an old landowner who put covenants on all their properties.

It's States in title deeds about the covenant and is highlighted you may find it hard to trave the people..

What's the best way forward.
Indemnity insurance or pay up as I think they want in region of £1000. If they know work has started could they not blackmail or ask for more money

anselld

Cannot get indemnity insurance now that the problem is known.

Sounds like negotiate / pay up to me.

jonnyb1978

That's what I though but the trust don't know building as begun, only that planning permission was sought.

anselld

jonnyb1978 wrote: »

That's what I though but the trust don't know building as begun, only that planning permission was sought.

No need to tell them work has started.

G_M

Indemnity insurance will not help

a) the estate is already aware (bit like taking out medical insurance after finding out you have cancer....)

b) if the policy did pay ot, it would protect against financial loss, but would not protect the extension. The estate could still force its removal.

The fact is the covenant (from what you say) exists and the owner should have known.

He should now write to the estate requesting consent, and hope that it is granted, and at not too great a cost.

Hoploz

You should have asked permission. You'd better ask now. I would imagine that in the scheme of things another £1000 cost for the work is something you'll just have to add to the cost.

We had a similar covenant on our last house. I knew about the covenant saying the builder had to give permission, but knowing the house was built in 1958 I didn't think it would ever be enforced. I'm still sure it wouldn't, but when I sold I had to buy an indemnity.

But in this case as they know about it I don't see there is any choice. Other than not to have the extension.

jonnyb1978

Thanks guys. Thought as much but as mentioned above the estate are aware.

They are only aware that planning permission was asked. Not that any work has started. Would this make any difference.

G_M

You've already said that, and already been answered......

jonnyb1978

G_M wrote: »

You've already said that, and already been answered......

Just trying to find all angles, as, as far as the estate trust are concerned no building work has ever taken place. The plans are included in permissive development so no planning permission was needed. Should of gone down that route I guess.

From research these seem to be an old landowner who nobody can get hold of, then the trust use bullying tactics to get their money. Seems quite well known by the same people.

Cheeky_Monkey

IMO the Estate will find out once the work has been completed and all relevant certificates issued.

Has your friend checked whether the Covenant states that the previous owner would be due a percentage of the uplift in value?

jonnyb1978

I don't think so. Seems like a large landowner. A Lord or similar owned huge amounts of land and put these covenants in for their workers to not ruin his land. All genuine back in the day but the trust seem to be abusing it now by demanding and using bullying tactics, not replying to letters and intimation from what I have gathered from Google.