Restrictive covenants, as you may well know, can be a real nuisance for landlords.
But what exactly are they, what effect do they have, and how can you remove them?
In his latest article, Landlord & Tenant Specialist Olivia Parkinson answers these questions and more…
What is a restrictive covenant on a property?
A restrictive covenant is a clause within a contract which prevents or restricts people from taking certain actions.
These types of covenants are usually found in commercial contracts and law but are also often found in property.
Restrictive covenants can be a real nuisance for both landlords and tenants, especially if they wish to take certain actions which are prohibited
What does a restrictive covenant prevent you from doing?
As a landlord, a restrictive covenant could prevent you (or your tenant) from:
- Causing nuisance or annoyance (a common covenant)
- Letting your property out for business use
- Subletting or permitting subletting of the property
- Altering or diminishing the character of the block (may include the banning of major works and/or renovations)
Do restrictive covenants devalue a property?
Yes, restrictive covenants are likely to devalue a property.
This is because restrictive covenants aren’t attractive and are less appealing to potential buyers, as they could potentially cause issues down the line for prospective buyers and limit their options.
How long does a restrictive covenant last on a property?
Certain restrictive covenants can be in place throughout the duration of ownership and therefore it is important that buyers understand their obligations before completing the purchase.
How do I find out if there is a restrictive covenant on a property?
Restrictive covenants are likely to be found within:
- The property deeds, or
- The Charges Register of the title document
If you are struggling to find any covenants, its worth speaking to your solicitor and they can help you locate them.
If you’re currently going through a purchase, your conveyancing solicitor will be able to assist you with this before completion.
Is Airbnb a breach of covenant?
Airbnb is a popular service where individuals let out their property on a short-term basis (perhaps one night, a weekend or a week) to a holidaymaker, tourist etc.
This is known as short term letting.
Some of the restrictive covenants that we listed earlier (including those that prevent nuisance, annoyance and business lettings) would prevent you from short term letting; and the courts have been very strict on that.
Olivia Parkinson looks at Airbnb short term lettings, the issues that may arise and answers questions from both landlords & tenants in his dedicated article; which can be read here.
How do I remove a restrictive covenant from my property?
If the restrictive covenant meets certain criteria, you can apply to the Upper Tribunal to have it removed.
Alternatively, if all parties who benefit from the restrictive covenant agree, a Deed of Release can be used to remove it.
Read our comprehensive residential landlord's guide here.
Solicitors for varying and removing restrictive covenants
The process of removing a restrictive covenant can be quite complicated. At Frettens, our bright, experienced team of solicitors would be happy to look into whether or not its possible to vary or remove such a covenant from your property.
If you wish to seek legal advice, or have any questions following this article, please don’t hesitate to get in touch on 01202 499255 or fill out the form at the top of this page.
We offer a free initial chat for all new clients.
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