Restrictive covenant

Mortgage Knowledge Base
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A restrictive covenant is a legal provision included in the title deeds or land registry documentation of a UK property. It imposes certain limitations or restrictions on the use or development of the property to protect the interests of the original landowner, the community, or neighbouring properties. Restrictive covenants are enforceable by law and are usually passed on to successive owners of the property, meaning they remain in effect even when the property is sold.

Examples of restrictive covenants:

Limitations on alterations and extensions

A restrictive covenant may stipulate that the property owner cannot make significant alterations or extensions to the property without obtaining prior approval from the original landowner, a management company, or another authority. This covenant is intended to maintain the architectural character and aesthetic appeal of a neighbourhood or to prevent overcrowding and ensure each property has access to sufficient light and air.

Prohibitions on commercial use

A restrictive covenant may prohibit the property owner from using the property for commercial or business purposes. This is commonly found in residential areas to maintain a peaceful living environment and to prevent disruption to the neighbourhood caused by increased traffic, noise, or other nuisances that might be associated with commercial activities.

If a property owner breaches a restrictive covenant, they may face legal consequences, such as an injunction to cease the activity or undo the alterations, or financial compensation to the affected parties. It is essential for potential property buyers to carefully review the title deeds and be aware of any restrictive covenants before purchasing a property to ensure they can comply with the restrictions and avoid future legal disputes.

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