Should we worry about Covenants on the property title.

[BroglieBoy]

We are buying a freehold property in England and the Title search came up with the following:

"The Transfer to the proprietor contains a covenant to
observe and perform the covenants referred to in the Charges Register
and of indemnity in respect thereof."

A Transfer of the land in this title dated 17 June 1977 made between
(1) ABC Limited and (2) XYZ contains restrictive covenants.

We checked with the conveyancing solicitor but we are not clear what this means.
Is this very common? Should we be worried due to this? Should we avoid such properties? We plan to extend the property and the conveyancing solicitor mentioned to us that we need to take permission from 2 parties.
one from the Planning permission and second form this covenants.

Anyone had any experience with such restrictions? Any advise?

I saw ours as a strong positive- it was a 1930’s style development on a piece of land once owned by a monastery.

it was very unique and charming, with the houses gathered around a little courtyard.

the covenant prevented anyone from changing the character of the buildings or road. Worked for me, as I loved the whole look and feel. Meant I could buy knowing a developer couldn’t barge in and start building flats, and no one could whack large extensions on.

The covenant on my (fairly new) house is that I can’t sell animal feed from the property 🤷‍♀️ definitley worth finding out what it is from the solicitor OP

No one in my Dad's village is allowed to brew their own beer, because the Laird did and it was a hefty income for him, once upon a time!

He/she needs to find out what they refer too. Trees, labs etc

@BroglieBoy

The passage you provided indicates that there are restrictive covenants associated with the property you are considering. Let's break down the information and address your concerns.

1. Understanding the Covenant in the Transfer:

"The Transfer to the proprietor contains a covenant to observe and perform the covenants referred to in the Charges Register and of indemnity in respect thereof."

Explanation:

A covenant is a legal promise or obligation tied to the property.
The Transfer document you have includes a promise to abide by the covenants mentioned in the Charges Register.
Indemnity in respect thereof means that you agree to compensate for any loss or damage arising from not complying with these covenants.
Commonality:

This is a standard clause in property transfers, ensuring that the buyer is aware of and agrees to uphold existing obligations related to the property.

1. Restrictive Covenants in the 1977 Transfer:

"A Transfer of the land in this title dated 17 June 1977 made between (1) ABC Limited and (2) XYZ contains restrictive covenants."

Explanation:

Restrictive covenants are specific limitations on how the property can be used or developed.
In this case, they were established in the 1977 transfer between ABC Limited and XYZ.
Commonality:

It's relatively common to encounter restrictive covenants in property transactions, especially if the property has changed hands multiple times.

1. Concerns and Considerations:

a. Extension Plans:

If you plan to extend the property, it's crucial to check the restrictive covenants for any limitations on alterations or expansions. The conveyancing solicitor's advice to seek permission aligns with the need to comply with these covenants.
b. Two-Party Approval:

Having to seek permission from both planning authorities and covenant holders is not unusual. It's a procedural step to ensure that your plans align with both legal and property-specific requirements.
c. Consult with Solicitor:

Seek detailed clarification from your conveyancing solicitor regarding the specific nature of the restrictive covenants. Understand what limitations they impose and whether they might affect your intended use or modifications.
d. Case-by-Case Basis:

Whether you should be worried depends on the nature of the restrictive covenants. Some may be straightforward, while others could pose challenges to your plans. Each case is unique, and your solicitor can provide tailored advice.

1. Previous Experiences and Advice:

a. Learning from Others:

Connect with individuals who have experience dealing with properties with restrictive covenants. They can share insights into the process and potential challenges.
b. Legal Consultation:

If the restrictive covenants seem complex or restrictive, consider consulting with a property lawyer to get a comprehensive understanding of the implications.
c. Negotiation Possibilities:

In some cases, it might be possible to negotiate with the covenant holders, especially if the proposed changes are reasonable and do not significantly impact the interests protected by the covenants.
Conclusion:
Encountering restrictive covenants is not uncommon in property transactions. Your conveyancing solicitor is a valuable resource in navigating these complexities. Seek detailed information about the specific covenants, their implications on your plans, and any potential negotiation avenues. With a clear understanding, you can make informed decisions regarding the property purchase and your intended extension.

I have the chicken one as well and something weird about fabric, can't remember the details but something about not dyeing/bleaching fabric outside?

Hopefully yours will turn out to be the chicken one (unless you are desperate for chickens!).

Usually pretty innocuous, but can be mega expensive. I know of a couple of instances where property (usually big and old, like country house) had the responsibility under a covenant to re-roof the church if it needed doing. Better to check than get caught out. If minor, then who enforces the covenant? eg when property next to us was built, part of planning said they had to plant fruit trees (as it was built on old orchard). Builder didn't, so nothing has been done.

Used to live in a student house which shared this convenant. Most of the houses had got around it by building the stupidly short shed then excavating inside to create a standing height. We had a slope down to ours for bike storage!

Has the limited company gone bust? We have a fair few covenants on our house, but the ltd company has gone bust so (as I understand it) they’re unenforceable.

Are you thinking of Chancel liabilities? It was quite a thing for a little while. And hugely costly.

www.blbsolicitors.co.uk/blog/chancel-repair-liability-explained/

I would not personally buy the house unless I agreed to stick with whatever the restrictive covenants are and agreed with them.

Our road has restrictive covenants, clearly some people might think they are petty, or didn't read what they were, because if they are broken (for example no houses can have a caravan on the drive, commercial vehicles etc) neighbours get involved so it can cause issues and disagreements!

How will the orphans get to the beach now? 😔

Ours are that the majority of the front garden has to be laid to lawn, and no livestock to be kept except one cat and one dog. I have two cats so one has to identify as a dog.

My favourite was the right to lead a cow through the property on set market days about three times a year.

I also remember one about consumption of alcohol and tobacco on the premises. The most cringy one was where it couldn't be leased to someone of a different religion (NI).

All the houses in my town have covenants to get consent of a local body called the Heritage Foundation to make changes to their house. These are very old but the local body exists and is very active and publishes guidelines as to what we can and can’t do. It’s like another layer of planning, but has a whole process for applications. Eg all the windows need to look a certain way and the older houses have to have windows that look like wood and we can’t get rid of a certain percentage of lawn in our front gardens if we want to add a drive. My town is of particular historical interest and it does look really nice in the parts with old houses as it’s strictly enforced! There are new build estates on the outskirts where the rules are much less strict.

I think new build estates often have the same to the developer or a management organisation set up to keep the “look” of the estate. Which in my opinion can be a good thing!

Mine was the same along with not being allowed to run a house of 'ill-repute'. Also a victorian house.

Moved to a 1970s and surprising you cam run a house of 'ill-repute' but no caravan on the drive.

Some covenants will be about keeping livestock, others will be about border maintenance. They should be listed.

As pp advised you need to find out what the restrictive covenants are and your solicitor should be explaining in detail what they are.

We live in a new build, and a covenant is non sign written vans to be parked on drives....

The house I’m currently trying to buy restricts me to twenty head of poultry and no pigs! I can’t believe how many here say no chickens at all… 🤣

I have friends who have some restrictive covenants about a quarry on their land which ramped up operations after they bought. Long, long lease with a rent of £50 a year. It actually costs them a fortune as they are also responsible for the security of the site. I suspect it was a good thing way back when but now it’s pretty much unsellable for next few decades until lease runs out.

As PP have said you need to know what the covenants are. If they are, as PP suggested, about not operating a public house and you have no intention then fine. But I have come across covenants that include not keeping a caravan or branded work van or operate a business.

Common in both old houses (often absurd, as others show) and new (mainly to keep new build estates pristine whilst the development is still taking place and sales till being made. They are often completely ignored after this).

What stage are you at with your purchase? This is normally covered in your solicitor's report, which may be why you don't yet have details. They may be making enquiries vaiut them.

If things causing you anxiety, ask your solicitor directly what they are, or buy a copy of the deeds from the land registry.

FWIW, we are supposed to allow for a garden inspection every 3 years by a long dead (named, including first/middle names) Lord. I googled him and he died in 1899 or thereabouts, before the house was built, and our solicitor got it removed as a matter of course.

We own every single set of deeds since our house was built, and there have been various weird and wonderful clauses that have been added and struck off with each purchase 😂They are surprisingly interesting reading!

Agree with above- you need to see what they say.
Mine were not making bricks on the property, keeping a hedge of a certain height above a low brick wall around the front garden, no caravans on the drive.

I can't remember mine exactly but I bought an ex local authority house and the covenant was something about not erecting something in the garden, stables policy and needed permission to build there. I emailed the council. They said it no longer applied and if I did want to build anything, normal planning (if required) would suffice. They're usually silly things from years ago as some of the other posters have demonstrated

I had my covenants amended from no livestock to max 8 chickens.

We cannot run a bawdy house, store a caravan or have a satellite dish. When we bought the house it had a satellite dish and a dodgy reputation.