Restrictive covenants

madphys

I'm looking to purchase a property and amongst issues that have arisen is the finding of a restrictive covenant from land registry searches that restricts conducting business from home. As this is a necessity for me (physio) I'm looking to find out how enforceable these are? The covenants were established by the original vendors mid 40's and appear to have passed away from my following person searches. Is this a simple cut case of not being enforceable or can someone inherit a vested interest in that covenant?

Currently we are not proceeding formally through solicitors until we can address a few issues and see if the purchase would be viable envelope addressing my query to you knowledgeable folk first!

Silvertabby

I think you'll need to take advice from a local solicitor who, hopefully, will have past experience with this issue. If you don't want to go down this route, can you see if anyone else on this estate is running a business from home?

There's a group of houses near to us which back on to an old church. They have a restrictive covenant which basically says: "The church has been here a lot longer than the houses. The church bells will be rung on Sundays and for weddings and funerals. Complaints about the noise will not be entertained". Different to your case, I know, but this covenant was applied over 40 years ago and definitely still applies.

NeilCr

I live on an estate with that covenant. As a director I doubt we'd be bothered unless the business had some impact. We did have a childminder and there were some problems with the parents parking in residents places so we were about to act when she moved out

There was a very similar example quite recently on this forum

What's the set up of this estate? Do the residents own the freehold?

MyOnlyPost

I bought a house with a restrictive covenant that said I could not manufacture or sell Alcohol. Technically my tenant cannot make Home Brew

These kind of covenants are extremely complex and probably only a conveyancer is going to be able to give you a definitive answer

ChasingtheWelshdream

Our purchase has this covenant. We will be self-employed with a home office.

Our solicitor's guidance said that the covenant would still apply, but was designed to stop the houses being converted to shops, mechanics, factories, or anything that would be deemed a nuisance to neighbours.

Although technically enforceable, a home office would probably go unchallenged.

We're taking the risk.

stator

Who was the original developer with the benefit of the covenant?
Unless it was the council I would ignore it. No developer will care about your business on an estate they have no interest in.

da_rule

We live on an estate that has this restriction. As has been said, these are usually put in place by developers who don't want the estate to look bad when they are still trying to sell properties on it. It also prevents people operating potentially disruptive businesses from their homes.

The benefit from this will pass to the successors in title of the people who were the original beneficiaries.

As long as your clients don't cause problems with parking that would annoy the neighbours then I doubt there will be a problem. There are probably lots of other people in the area that work from home or bring work home with them etc.

NeilCr

One of the residents on our estate reckoned a brothel was operating from one house here. Not really sure about that but, if there was, no-one noticed apart from him

Which is the general point that, unless the business is causing problems, people aren't going to be bothered and you should be fine. The only caveat I'd add is that you wouldn't want to fall out with your neighbours - because the covenant could give them ammunition

madphys

It looks as if the original vendors who set the covenant were some land owners/developers back in 1940s. So whilst I understand any future purchasers agree to abide by those covenants is understand what level of risk there is. I need to be able to run one room as a clinic so we're not talking 'home office'. Previously councils are not too worried. My understanding is it's on the 'vendor' who can take action on a covenant rather than a neighbour. It's a well established estate with a variety of houses.

There's more covenants but this is the only one I'm concerned with.

NeilCr

Do the other houses on the estate have the same covenant? What's the situation with the estate? Who owns the freehold if there is one;?

I am not sure what you mean by previous councils.

I've got to say that I've heard the more covenants but I'm only concerned with this one before. It's amazing how many folks are happy to abide with certain covenants but get sniffy about others. You will probably be fine - but, as I said before, be aware of falling out with neighbours

G_M

madphys wrote: »

......My understanding is it's on the 'vendor' who can take action on a covenant rather than a neighbour.

You (and some others) are wrong.

Covenants pass with the land, not the people. So anyone who buys/owns land that benefits from a covenant, can enforce that covenant (against the current owner of whatever land is restricted by the covenant).

So there are 2 issues here:

1) what land benefits, and who now owns it?
2) would they in practice notice or care, if the covenant were breached, and would they enforce?

We don't have enough information from you to answer 1) above.

For example, if a builder/developer, or land-owner (or as suggested above, local church) sold off plots of land and included a covenant, then
a) the original developer could enforce, providing he still owned some of the land involved
b) a neighbour could enforce if he now owned a plot of land that was included in the original covenant

However, as suggested above, many (not all) of these covenants are designed to stop people opening shops or factories in the area, so noone would care about your business (even if they knew). Or it may be intended to prevent comings and goings (delivery lorries, customers etc), so again, provided your customers park sensibly and don't cause a nuisance, no one is going to care.

So whilst in practice you are probobly fine, in legal terms, you may be at risk.

But you should look closer at

a) who introduced the covenant and why
b) who now benefits from it and could, in theory, have the right to enforce