Restrictive Covenant - What does this mean?

ArbitraryRandom

Rikz12 said:

I'm trying to find a contact for the limited company online but its seems its dissolved (I am assuming it is the same one) and if I am reading this right, would that mean that these rules are not valid anymore?

Unfortunately you can't assume that. 

It might be the case that it's obsolete, or it might be there's a 'successor in title' (or beneficiary) who can still enforce it. 

I know it's frustrating, but really you need to wait for your solicitors - they will do the research required and advise you on the risk/if you can do what you want. That is after all what you're paying them for.  

user1977

Rikz12 said:

@user1977 - essentially, we want to build an extension for a kitchen and diner. The covenant that is concerning is the following: 4.  Not to make any structural alterations or additions to the property or to erect any new permanent buildings or outbuildings on the land without first submitting plans thereof to the Vendors and obtaining their approval in writing thereto."   

The same covenants will (almost certainly) apply to every house in the development. So, has anybody else built extensions etc? If so then it's reasonable to assume there won't be a fundamental problem with you doing so.

Weathergirl_76

Hi, I have these on the property I purchased and am living in. My conveyancer read them out to me before I signed, in essence they are ‘rules’ you have to adhere to. From memory, some of mine were: no aerials on the roof, no boats, caravans or mobile homes allowed in the residents car park, front garden to be kept weed free. Not exactly sure who would deal with any breaches of any of these and I noticed a few door down a property (with the same covenants) has an aerial. The management company don’t seem to be too bothered. The property is 30 years old and sits on a road which runs through the centre of a small Kent village. 

Rikz12

@user1977 -  Yeah, so it looks like that area was built by the same company and all the houses have the same covenants. I would say, out of 12 houses on the close, around 9 have alterations/extensions etc.

@ArbitraryRandom - yeah, we sent the message to our solicitors over a week ago and still haven't heard back. With the long weekend coming up too, things just seem to be getting pushed back with them. We are the stages of signing the contract - ready to set exchange and completion dates. So, not too far. 

@Weathergirl_76 - Our potential property would be around 65 years old, so fingers crossed no one comes knocking on the door.

A family member told us not to worry, do the work and just get indemnity insurance. Has anyone gone down this path? Would this cover us and future buyers?

ArbitraryRandom

Rikz12 said:

A family member told us not to worry, do the work and just get indemnity insurance. Has anyone gone down this path? Would this cover us and future buyers?

Unfortunately that's another thing you'd really have to discuss with your solicitor. I'm not a legal expert, but my understanding of indemnity is that it protects you against something someone else has done or advised.

So if you had the work done it could protect your buyer, but you can't just build an extension and get indemnity to cover yourself (or everyone would do it to get around planning requirements). 

Again, I stand to be corrected. 

user1977

ArbitraryRandom said:

Rikz12 said:

A family member told us not to worry, do the work and just get indemnity insurance. Has anyone gone down this path? Would this cover us and future buyers?

Unfortunately that's another thing you'd really have to discuss with your solicitor. I'm not a legal expert, but my understanding of indemnity is that it protects you against something someone else has done or advised.

So if you had the work done it could protect your buyer, but you can't just build an extension and get indemnity to cover yourself (or everyone would do it to get around planning requirements). 

Again, I stand to be corrected. 

No, I think it's fine to get insurance for your own benefit. What you can't (realistically) do is get insurance before you do the works - generally insurers will expect the "dust to have settled" and there to have been a year or two passing after the works are completed, with no sign of anybody kicking up a fuss.

ArbitraryRandom

user1977 said:

ArbitraryRandom said:

Rikz12 said:

A family member told us not to worry, do the work and just get indemnity insurance. Has anyone gone down this path? Would this cover us and future buyers?

Unfortunately that's another thing you'd really have to discuss with your solicitor. I'm not a legal expert, but my understanding of indemnity is that it protects you against something someone else has done or advised.

So if you had the work done it could protect your buyer, but you can't just build an extension and get indemnity to cover yourself (or everyone would do it to get around planning requirements). 

Again, I stand to be corrected. 

No, I think it's fine to get insurance for your own benefit. What you can't (realistically) do is get insurance before you do the works - generally insurers will expect the "dust to have settled" and there to have been a year or two passing after the works are completed, with no sign of anybody kicking up a fuss.

Heaven forbid they protect against an actual risk

Section62

user1977 said:

Rikz12 said:

@user1977 - essentially, we want to build an extension for a kitchen and diner. The covenant that is concerning is the following: 4.  Not to make any structural alterations or additions to the property or to erect any new permanent buildings or outbuildings on the land without first submitting plans thereof to the Vendors and obtaining their approval in writing thereto."   

The same covenants will (almost certainly) apply to every house in the development. So, has anybody else built extensions etc? If so then it's reasonable to assume there won't be a fundamental problem with you doing so.

...or the others went through the process of obtaining consent (or have the covenant beneficiary on their backs already).

Chemistry777

The original land our property was build on was owned by the Church, and hence we have lots of restrictive covenants relating to not impeding the church congregations and things on Sundays which are quite bizarre.

Also, our covenants document is hand written in old English script and using old English language.  Combine this with legalise, the document is literally unreadable and incomprehensible. 

Rikz12

So, finally got a response from our solicitor and they have come back with the following: 

As the conveyance is not available you would not know who to ask for consent from so if you were to decide to do an extension in the future you can still apply for planning and building regulations consent from the Local Authority. You just will not have the consent as per the register of the vendors (restrictive covenants). So you will need to obtain a breach of covenants indemnity policy for your future buyers.

So I guess, with the relevant planning permission (as necessary) you can breach the covenants and simply get an indemnity policy. Lord only knows though, given the slow responses whether this is solid information. I guess the main thing for future prospects would be for us to feel protected and any future buyers to feel protected too).  

I would be keen to know, what you would do? 

(Also, massively appreciating the feedback from you all. Feels like things make more sense now)