Got Planning Permission—but a Covenant Says No! What Will Insurance Cover?"

LordWinterbottom

GrumpyDil said:

Who holds the benefit of the covenant?. Best solution would be to get agreement from them. If you expect to rely on indemnity insurance you would need to be very clear on exactly what that covers?

A previous landowner (not the current landowner who is selling) they may be the neighbour but not sure however that land is up for sale too. 

LordWinterbottom

k12479 said:

user1977 said:

If the beneficiary of the covenant wasn't jumping up and down as soon as the planning application was submitted then it would seem more likely that they're not going to be a problem.

I would be careful of making that assumption.

a) They may not be aware until they happen to see construction commencing/completed and b) whether they're aware or not from the planning stage, the savvier covenant holder may wait until you've invested more in the build and have more to lose.

This is what I am worried about. The sellers solicitors have suggested indemnity but I do not know if they have attempted to release the covenant.

LordWinterbottom

WIAWSNB said:

Hang on, isn't it the Planning dept wot impose and then enforce aggie ties in the first place?
Are they giving PP against their own covenant?
That would be funny...

No it's not a argie tie imposed by planning.

user1977

LordWinterbottom said:

k12479 said:

user1977 said:

If the beneficiary of the covenant wasn't jumping up and down as soon as the planning application was submitted then it would seem more likely that they're not going to be a problem.

I would be careful of making that assumption.

a) They may not be aware until they happen to see construction commencing/completed and b) whether they're aware or not from the planning stage, the savvier covenant holder may wait until you've invested more in the build and have more to lose.

This is what I am worried about. The sellers solicitors have suggested indemnity but I do not know if they have attempted to release the covenant.

As mentioned above, it's very unlikely insurance would be forthcoming if someone has recently rattled the cage of the beneficiary of the covenant. So I presume the solicitors are not being daft and that they have not made an approach to the beneficiary.

LordWinterbottom

user1977 said:

LordWinterbottom said:

k12479 said:

user1977 said:

If the beneficiary of the covenant wasn't jumping up and down as soon as the planning application was submitted then it would seem more likely that they're not going to be a problem.

I would be careful of making that assumption.

a) They may not be aware until they happen to see construction commencing/completed and b) whether they're aware or not from the planning stage, the savvier covenant holder may wait until you've invested more in the build and have more to lose.

This is what I am worried about. The sellers solicitors have suggested indemnity but I do not know if they have attempted to release the covenant.

As mentioned above, it's very unlikely insurance would be forthcoming if someone has recently rattled the cage of the beneficiary of the covenant. So I presume the solicitors are not being daft and that they have not made an approach to the beneficiary.

The seller’s solicitors have sent over the proposed indemnity policy, so I think you are correct.

WIAWSNB

user1977 said:

LordWinterbottom said:

k12479 said:

user1977 said:

If the beneficiary of the covenant wasn't jumping up and down as soon as the planning application was submitted then it would seem more likely that they're not going to be a problem.

I would be careful of making that assumption.

a) They may not be aware until they happen to see construction commencing/completed and b) whether they're aware or not from the planning stage, the savvier covenant holder may wait until you've invested more in the build and have more to lose.

This is what I am worried about. The sellers solicitors have suggested indemnity but I do not know if they have attempted to release the covenant.

As mentioned above, it's very unlikely insurance would be forthcoming if someone has recently rattled the cage of the beneficiary of the covenant. So I presume the solicitors are not being daft and that they have not made an approach to the beneficiary.

Do the insurance companies actually check this, or just issue their policy with that caveat quietly included? 'Null & void if..."

user1977

WIAWSNB said:

user1977 said:

LordWinterbottom said:

k12479 said:

user1977 said:

If the beneficiary of the covenant wasn't jumping up and down as soon as the planning application was submitted then it would seem more likely that they're not going to be a problem.

I would be careful of making that assumption.

a) They may not be aware until they happen to see construction commencing/completed and b) whether they're aware or not from the planning stage, the savvier covenant holder may wait until you've invested more in the build and have more to lose.

This is what I am worried about. The sellers solicitors have suggested indemnity but I do not know if they have attempted to release the covenant.

As mentioned above, it's very unlikely insurance would be forthcoming if someone has recently rattled the cage of the beneficiary of the covenant. So I presume the solicitors are not being daft and that they have not made an approach to the beneficiary.

Do the insurance companies actually check this, or just issue their policy with that caveat quietly included? 'Null & void if..."

They'll certainly ask the question before agreeing to cover this sort of situation, and it will be a continuing condition of the policy that you stay schtum about the covenant.