Buying a property is one of the biggest investments most people will ever make. But if the property comes with a restrictive covenant, it’s vital to understand what you’re agreeing to before signing on the dotted line. These legal conditions can affect how you use, alter or even live in your new home – and ignoring them can lead to serious consequences.
In this guide, we’ll explain what restrictive covenants are, why they’re used, the risks involved in buying a property subject to one and what steps you can take to protect yourself. That includes setting up an initial 30-minute consultation with a commercial property solicitor.
What is a restrictive covenant?
A restrictive covenant is a legal condition written into the deeds of a property. It limits what the owner (and future owners) can do with the land or buildings. These restrictions are binding – they run with the land – meaning they remain in force even if the property changes hands.
Examples of common restrictive covenants include:
- Not building extensions or additional structures without consent
- Prohibiting commercial use of a residential property
- Banning certain types of fencing or outbuildings
- Preventing parking of caravans, boats or trade vehicles
- Forbidding alterations to the appearance of the house (such as painting or rendering)
- Limiting the type of animals kept on the property
- Restricting certain businesses from operating on the land
Covenants can be decades or even centuries old – yet they are still legally enforceable today.
Who enforces a restrictive covenant?
Restrictive covenants are typically enforced by the person or entity with the “benefit” of the covenant – usually a neighbouring landowner, developer or housing estate management company.
If you breach a covenant, the beneficiary may:
- Request that you stop the breach
- Apply to the court for an injunction
- Seek compensation for damages
While enforcement is sometimes rare, it only takes one neighbour or company with the right to enforce the covenant to create a legal problem.
Why do restrictive covenants exist?
Covenants are often used by developers, previous landowners or estate managers to:
- Maintain a uniform appearance in a housing development
- Protect property values by preventing undesirable changes
- Limit activities that may cause noise, disruption or harm
- Control the nature of buildings and land use over time
In older properties, covenants may reflect historic social or religious views (for example, Sunday trading bans or outdated moral clauses) but these can still technically apply unless removed or deemed unenforceable.
What are the risks of buying a property with a restrictive covenant?
Buying a property with a restrictive covenant isn’t necessarily a deal-breaker – but there are risks involved.
1. Limited use of your home
You may not be able to:
- Extend your home or build a garden office
- Run a business from home
- Keep pets or livestock
- Rent your property as a holiday let
- Install solar panels or satellite dishes
This can affect how you live, how the property meets your needs and its future resale value.
2. Unexpected legal consequences
If you unknowingly or accidentally breach a covenant – for example, by carrying out unauthorised works – you could be subject to legal action, including:
- Court-ordered removal of the alteration
- An injunction stopping the work
- A financial claim for damages
In extreme cases, buyers have been ordered to demolish extensions or reverse landscaping work.
3. Delays or complications with mortgage or resale
Some mortgage lenders may hesitate to lend on properties with severe or unusual covenants. Future buyers may also be put off, limiting your property’s marketability.
In addition, restrictive covenants can delay planning permission applications, especially where local councils want to ensure no breach will occur.
How to check for restrictive covenants
Your commercial property solicitor or conveyancer will carry out searches as part of the property purchase process. They’ll review the title register and title plan from the Land Registry and highlight any restrictive covenants that apply to the property.
Ask your solicitor to explain:
- The exact wording of the covenant
- Who benefits from and can enforce the covenant
- Whether there’s a history of enforcement or disputes
- How the covenant may affect your intended use of the property
If anything is unclear, it’s worth getting a second legal opinion or asking for further investigations.
Can a restrictive covenant be removed or changed?
In some cases, yes. You have several options:
1. Obtain consent
If the person or organisation who benefits from the covenant is known and still active, you may be able to get their written consent to override the restriction. This is common in managed housing estates or where developers still exist.
2. Apply to the Lands Tribunal
If a covenant is outdated, unreasonable or interferes unfairly with your use of the property, you can apply to the Upper Tribunal (Lands Chamber) to have it modified or discharged. You’ll need to show that:
- The covenant is obsolete
- It prevents reasonable use of the land
- No one will suffer serious harm if it is removed
This is a legal process and may take time, legal fees and expert evidence.
3. Take out restrictive covenant indemnity insurance
If there’s a risk of a past or future breach, you may be able to buy indemnity insurance. This won’t remove the covenant but it can protect you financially if someone later tries to enforce it.
Your commercial property solicitor can advise on whether insurance is appropriate and how much it may cost.
Get legal advice before you buy
Restrictive covenants can vary from minor annoyances to significant obstacles. If you’re buying a property with a covenant in place, it’s vital to get clear, expert advice so you understand your rights and responsibilities before committing.
At Osbourne Pinner Solicitors, we help property buyers review covenants, assess risk and negotiate solutions. We also represent clients in covenant disputes, tribunal applications and enforcement matters.
To make things easier, we offer a free 30-minute consultation by video call or at our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester City Centre. Simply call us on 0203 983 5080, email [email protected] or use the enquiry form below to set up your session.
