Restrictive covenants

[Meimng]

Hi! We are purchasing a freehold detached house. We have received the report from solicitor and she has highlighted some restrictive covenants on the title. The RCs were inserted in 1937 during the original conveyance! These do put me off as I think these would adversely affect the property value.

1. You may not construct any additional buildings or additions to the property without the consent of the original owners of 1937.
2. The property must be used as a private dwelling.
3. No huts, sheds or caravans may be kept on the land.

Point 1, the original owners of 1937 are impossible to be reached I think. Does it rule out all extension potential? The plot of land is rather big. Number 3 also rules out all outbuildings in the garden?

The seller has extended the house and added some outbuildings in the garden. We are questioning if they have breach the RCs. I know seller can get indemnity insurance for the work that has been done. But the RCs are with the land indefinitely. Would RCs like these affect the value of this property for any onward sale?

Who actually benefits from the covenant?

This cannot be "the original owners of 1937" as presumably they are long dead. I would expect it to be the owner(s) of neighbouring land.

If the covenant is invalid you can potentially apply to the Land Registry to have it struck off the deeds.

I would say you need advice from a solicitor that specialises in this area of law.

We have a couple of covenants on our 1920s house, one requiring permission from original owner.

We've just ignored them, and have completed works that go against them. Not had an issue, who's going to enforce them? Original owners long since passed.

What does your conveyancing solicitor say?

Who would the beneficiary of the covenant be today?

If it were me I'd be ignoring 85 year old covenants of this type.

It wouldn’t bother me but like you say you can get an indemnity policy from the seller which will probably pass on when you come to sell the property. If the original builder of the property is dead you haven’t got anything to worry about. Who would enforce the covenants?

We have almost the exact same ones on our house and I was concerned. Others on the road have already just ignored with no repercussions. Our solicitor advised just wait at least a year after doing any work to sell to give the chance for the beneficiary to come out the woodwork and then it’ll be a case of an indemnity for any buyer which is about £200-400 additional in costs when selling

Who exactly will be enforcing these covenants?

Our house has plenty, built in 1900. We can't keep livestock or have a gypsy caravan (actual covenant wording) apparently (amongst many others).

Anyway moving forward no one will do anything if you extend your house etc. As you say the original owners are long gone and if neighbours were to try and enforce them they would have a long and costly legal process to follow.

Honestly old restrictive covenants mean nothing.

BTW the solicitor is doing their job of drawing your attention to them as they exist. That doesn't mean they are really important.