Restrictive Convenant- Implications for Future Works

SallyAnneBooth

Dear All,

I am purchasing a property (freehold) that has a Restrictive Covenant stating that any alteration/extension must be done with the permission of the original developer.

The Sellers completed a rear single storey extension (permitted development) about 10 years ago, they did not know about the restrictive covenant at the time so took out an indemnity policy.

I also plan to complete a rear extension/convert garage into a room/add an en-suite in the next 5 or so years.

How do I deal with the Restrictive Covenant? Can I ask the original developer to remove it before I begin the works? Or would that jeapordise the indemnity policy the Sellers have already taken out?

Thanks in advance for your help- I've tried searching on Google but haven't had much joy.

Also- there are no common areas or management companies involved etc and AFAIA the original developer (small firm) has moved on with no interest in the land.

SmashedAvacado

You can ignore the RC and hope that the beneficiary of the covenant does not try to stop you from undertaking the works. Or you can ask for permission. The problem is (once you are the owner) that the indemnity insurance you already have in place will mean that you will probably invalidate the insurance by approaching the beneficiary of the RC. So really you have to gamble on them not finding out and then when you come to sell, you can get a policy also.

SallyAnneBooth

Thanks SmashedAvacado!

Yes that's what I was thinking too. It's extremely unlikely they will find out, only concern is if a neighbour went out of their way to contact the original builders.

To clarify- do you mean it will invalidate the existing indemnity policy the Sellers have for the rear extension? Or the future one I will take out if I complete extra works?.....or perhaps both?

SmashedAvacado

SallyAnneBooth wrote: »

Thanks SmashedAvacado!

Yes that's what I was thinking too. It's extremely unlikely they will find out, only concern is if a neighbour went out of their way to contact the original builders.

To clarify- do you mean it will invalidate the existing indemnity policy the Sellers have for the rear extension? Or the future one I will take out if I complete extra works?.....or perhaps both?

Potentially both. This would not be a good thing. You can get some comfort from the fact that they got insurance for the existing work. Also the benefit of the covenant would vest in whoever now owns the land owned by the builders - as the benefit vests in the land not in the builders (unless they still own the land). The covenant actually has to benefit the land having the benefit of it to be enforceable - eg preserving its character - so many covenants will not be enforceable if they don't do this.

SallyAnneBooth

Righto, so in that case I should keep completely schtumm.

I will confirm if the Original Developers own any of the land, however I suspect they don't.

Also would this RC affect my mortgage in any way? I have already received the full mortgage offer, the bank did not know about the RC at the time.

Thank you

SmashedAvacado

SallyAnneBooth wrote: »

Righto, so in that case I should keep completely schtumm.

I will confirm if the Original Developers own any of the land, however I suspect they don't.

Also would this RC affect my mortgage in any way? I have already received the full mortgage offer, the bank did not know about the RC at the time.

Thank you

This will be for your lawyers to give the bank comfort on. If there is insurance in place, then most banks will be happy. They won't have factored in your plans for the property going forward so that won't be an issue.

SallyAnneBooth

Okay that's understood (abit of a relief!).

Will i have to wait a certain time before taking out my own indemnity policy? Or can I take it out as soon as the works are completed?

You mentioned getting the indemnity if/when I come to sell on but I'd rather buy the insurance asap after my own works are done.

Thanks

SallyAnneBooth

Bump.....can anyone advise please?

Thank you.

James_d_2

You cannot buy your own insurance only time
You can is when your selling
Convenant insurance is only sold to solicitors or conveyers

James_d_2

And even then it must of been up over 12 months

SmashedAvacado

James_d wrote: »

You cannot buy your own insurance only time
You can is when your selling
Convenant insurance is only sold to solicitors or conveyers

None of this is true but hey ho.