It seems that restrictions and covenants are everywhere you look – old properties, new properties, leasehold properties, conversions, new builds. Some date back decades or even centuries, some are brand new.
What Are Covenants and Restrictions?
Covenants and restrictions are legal agreements that limit how a property can be used. These can be found in deeds or other legal documents related to the property. So when should property buyers take them in their stride, and when should they turn their backs in despair?
Don’t Panic – But Do Investigate
James Greenwood of Stacks Property Search says, “It’s an issue that comes up constantly. Covenants and restrictions don’t have to be deal breakers, but they do need to be properly investigated, and if necessary, insured against, or lifted.”
Ask Early and Check the Deeds
Clare Coode of Stacks Property Search advises, “Early knowledge is important. ALWAYS ask the vendor or sales agent whether there are any restrictive covenants, at an early stage; as soon as you’re interested enough to ask for a second viewing… It’s a quick and simple process to look at the Title Register or Title Plan on the Land Registry website.”
Some Covenants Matter More Than Others
Ed Jephson of Stacks Property Search adds, “Restrictive covenants come in all shapes and sizes, and in varying degrees of concern. Those relating to access and future development… should not be taken lightly. Others that go back into the mists of time are less of a concern as they are often null and void.”
Home Businesses and Holiday Lets
“It’s not unusual for a property to have a restrictive covenant that states the property can’t be used for the running of a business,” says Jephson. While this generally refers to commercial operations, it can cause issues for buyers planning to use a home as a rental, Airbnb, or for running classes.
Clare Coode recalls, “A client was buying a property… all had the same covenant restricting ‘running of a business’. My client wanted to use the property as a holiday let… but their solicitor didn’t agree the precedent was sufficient. We eventually got confirmation that it was allowed.”
National Trust Land and Shared Drives
Charlie Rearden of Stacks Property Search warns, “Properties on or near National Trust land are often subject to restrictions… Shared drives are common, and buyers should carefully examine related responsibilities, restrictions, and costs.”
Solicitors, Insurance, and the Importance of Timing
James Greenwood explains how the handling of covenants has changed: “Solicitors used to take a practical view… then insurance became standard. But now solicitors seem more wary than ever.” Early awareness is critical. “Downloading the Title Deeds early in the process will give everybody time to investigate and take any necessary measures to mitigate.”
Be Proactive with Your Property Search
“Estate Agents should have available information about any covenants on a property… but it’s safer for the buyer to be proactive,” Greenwood continues. “The Land Registry will often reveal the existence of any Covenants… for the detail, it’s important to check the full title.”
Examples of Common Property Covenants and Restrictions
Restrictive Covenants Might Include:
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No extensions, structural changes, or external modifications without consent
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Restrictions on running a business or using the property for commercial purposes
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Limits on pets or livestock
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Bans on subletting or short-term rentals
Covenants Might Also Require:
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Regular lawn or garden maintenance
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Financial contributions to shared areas or driveways
Other Common Restrictions:
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Regulated fence height and type
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Parking limits for certain types of vehicles
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Limits on noise or disruptive activities
Stacks Property Search, 01594 842880 / www.stacks.co.uk
