To the untrained or the uneducated, developing a property or multiple properties is as straightforward as building whatever, wherever you like. Sadly, no matter how big or small your development plans are, this simply isn’t the case.
Throughout the property development journey, there can be countless pieces of red tape to get through. So, knowing what to expect and understanding how to overcome certain hurdles will significantly help your schedule and end result.
In many cases, one of the main restrictions you are likely to come across when trying to achieve property development plans will be restrictive covenants.
What is a Restricted Covenant on a Property?
Restrictive covenants are an agreement put in place within a contract or obligation that stops the buyer from taking any action they want on a building. The covenants in place will vary greatly depending on the type of property and its location.
Covenants can be anything from alterations to the property without consent, erecting satellites on the property, causing nuisance to neighbours, running home-based businesses, or having a home office on the premises. Some properties may even have rules regarding the colour of the front door or whether a caravan can be parked on the driveway or not.
Tom Rowlands, Head of Specialist Property Finance here at Pure Property Finance, said:
“I have come across some unusual covenants including certain property sales being restricted to local buyers only, while these older covenants can seem far-fetched, it does teach us an important lesson to always read your title deeds.
“At Pure, with our wealth of experience coupled with our wider professional network, we are confident of overcoming hurdles that restrictive covenants may throw up.”
Where Are The Most Restrictive Covenants?
One of the main variables to consider when faced with property development and restrictive covenants is the location. This is because there are significant differences in the number of covenants you could be faced with depending on where you are in the UK.
For example, a city where properties are more densely packed in and are often more historical, will likely have greater restrictions than a sub-urban town.
As you can see from this interactive map of England and Wales we have created based on data released by HM Land Registry on 9th August 2021, the areas topping the charts feature thousands of restrictive covenants. Unsurprisingly, these include built-up areas such as Greater London, Greater Manchester and Merseyside.
