Restrictive Covenants on a FREEHOLD property with a management company

Maffy52

I am in the process of buying a FREEHOLD house built in 2021. The developer is Barratt homes.
My solicitor has sent me the list of RESTRICTIVE COVENANTS that I must follow.

To my surprise, this ran to 6 pages of restrictions, including;
- Not to run a business from the property - which would include things like an AirBnB.
- The property is only for a single family only -  so cannot rent out a room if I wanted to! Not sure whether a friend could come and live with me or not!
- Not to erect any other building or structure on the property.
- Not to erect any gate or boundary structures at front and side of property.
- to use the garage only to store a car/bike and items of a horticultural nature.
- Not to park a caravan on the property.
- Not to hang any washing out at the front of the property
- Not to store any goods, materials, rubbish outside the property which is visible from any part of the estate.
- PLUS on and on, many other things which I won't bore you with.....

IS THIS NORMAL!? I was frankly amazed as I thought FREEHOLD meant I owned the land, but instead, it feels like I am literally a 'tenant' under the control of the management company.

user1977

Yes, it's normal for title restrictions to exist, as your solicitor can advise. Whether the property is freehold or leasehold doesn't make that much difference.

I think you're being too literal with the "single family", it's more to prevent HMOs rather than prohibit the occasional friend or lodger.

FreeBear

Some of those covenants will expire once the sales office is closed or five years from the date of transfer (which ever is earliest). The bulk of the restrictions appear to be standard fare for most large developments.

Another thing to watch for is a charge for maintaining communal areas (often called a fleecehold). Whilst you own the property and the land that it sits on, the terms of an additional annual estate fee could impose onerous leasehold type conditions on you.

Yorkshire_Dangermouse

In your position I'd perhaps be asking my solicitor for their view on how long these covenants are applicable for, and who'd they be enforced by.

It may be Barratts wanting the development to be 'nice, tidy and uniform' whilst they sell the rest of the homes, and after that's done with (and they no longer own any part of the development) after a while the covenants fall away.

IANAL!!

Flugelhorn

I live on a Barratts estate with a management company who take no notice at all of any of these sorts of things:

Not to run a business from the property - which would include things like an AirBnB. 
plenty running businesses / AirBnB
- The property is only for a single family only -  so cannot rent out a room if I wanted to! Not sure whether a friend could come and live with me or not!
many rent rooms and there are some house shares - they really don't come and check
- Not to erect any other building or structure on the property.
you can get permission
- Not to erect any gate or boundary structures at front and side of property.

- to use the garage only to store a car/bike and items of a horticultural nature.
LOL you should see some of the garages here - one runs and electrical business and keeps his stock there 
- Not to park a caravan on the property.
actually they did eventually do something about this after complaints but didn't follow through 
- Not to hang any washing out at the front of the property

- Not to store any goods, materials, rubbish outside the property which is visible from any part of the estate.
they are having a laugh - no one goes round clearing up 
- PLUS on and on, many other things which I won't bore you with.....

who is the management company? 

Maffy52

user1977 said:

Yes, it's normal for title restrictions to exist, as your solicitor can advise. Whether the property is freehold or leasehold doesn't make that much difference.

I think you're being too literal with the "single family", it's more to prevent HMOs rather than prohibit the occasional friend or lodger.

thanks, good to know. I have never encountered this before so was a bit of a 'shock' for me...

Who would actually 'enforce' these covenants, as I would own the freehold, I assume it would be the management company?

Flugelhorn

Maffy52 said:

user1977 said:

Yes, it's normal for title restrictions to exist, as your solicitor can advise. Whether the property is freehold or leasehold doesn't make that much difference.

I think you're being too literal with the "single family", it's more to prevent HMOs rather than prohibit the occasional friend or lodger.

thanks, good to know. I have never encountered this before so was a bit of a 'shock' for me...

Who would actually 'enforce' these covenants, as I would own the freehold, I assume it would be the management company?

absolutely no-one, we struggle to get the management company to do anything! they sent out a letter about "no caravans or commercial vehicles"  most people ignored it and nothing happened

singhini

My house was built in 1998 and it has similar covenants such as:-

You cannot have a commercial vehicle parked on the drive
You are not to keep livestock
No satellite dish on the front elevation of the property
No for sale sign for the first two years

Now, the  "for sale sign" is the only one that specifies a timeline, none of the other covenants do. Ive always wondered if they ever expire, if so when? 

A quick internet search suggests they last indefinitely. 

Generally, restrictive covenants on property do not automatically expire; they can last indefinitely. They are tied to the land and remain in effect unless legally removed or modified. While some covenants might have a stated time limit, most are designed to be perpetual and binding on future owners. 

Maffy52

FreeBear said:

Some of those covenants will expire once the sales office is closed or five years from the date of transfer (which ever is earliest). The bulk of the restrictions appear to be standard fare for most large developments.

Another thing to watch for is a charge for maintaining communal areas (often called a fleecehold). Whilst you own the property and the land that it sits on, the terms of an additional annual estate fee could impose onerous leasehold type conditions on you.

Thanks for your advice, yes I saw a number expire.
The property is indeed subject to a management fee, around £160 a year.
According to the management pack, I have to 'become a member' of the management company. Not really sure what this means? Is this a usual condition of owning a property on a managed estate?
===
"I hereby apply to become a Member/Members of the Residents Management Company Limited in accordance with the Articles of Association"

Maffy52

Flugelhorn said:

Maffy52 said:

user1977 said:

Yes, it's normal for title restrictions to exist, as your solicitor can advise. Whether the property is freehold or leasehold doesn't make that much difference.

I think you're being too literal with the "single family", it's more to prevent HMOs rather than prohibit the occasional friend or lodger.

thanks, good to know. I have never encountered this before so was a bit of a 'shock' for me...

Who would actually 'enforce' these covenants, as I would own the freehold, I assume it would be the management company?

absolutely no-one, we struggle to get the management company to do anything! they sent out a letter about "no caravans or commercial vehicles"  most people ignored it and nothing happened

Interesting, I did wonder who actually enforces these things!
I bet if you forget to pay, then they WOULD do something!... 

SarahB16

Mortgage companies will also wish to know of any restrictions on title and this may deter some mortgage companies. Only adding this so you also consider whether these restrictions do reduce the number of financial institutions who will offer a mortgage.