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Restrictive Covenants - Private Residential Development

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  • Restrictive Covenants - Private Residential Development

    Hi all,

    Would really appreciate some advice on the topic of Restrictive Covenants attached to a Freehold title on a residential property which is undergoing development. We need to understand what are our options in dealing with a 3rd party company who has a Restrictive Covenant on the freehold title we have and is not being responsive at all.

    Background: We are the owners of a bungalow which is set in the grounds of a block of flats in London. We have an approved planning permission from the local council to extend the bungalow via side & back extensions and split it into 2 independent units. (for personal use)

    We are the owners of the property however in our Freehold title we have discovered the previous owner had purchased the Freehold from a 3rd party who at the time inserted a Restrictive Covenant article in the Title. The Restriction explicitly says "Not to make any additions to the property as to substantially alter its outlook" which our planned & approved extension is likely to be in breach of the restriction. This was added to the title in 2012.

    Options: Now, the 3rd party Management Company, who are listed as a Limited company overseas have been extremely uncooperative and unresponsive for a number of months. And after finally (verbally) agreeing to a compensation fee for them to allow our development to proceed, they have once again backtracked and are blocking the change.

    Typically 3 options are listed when it comes to RC disagreements ; a) negotiate - which for us has failed. b) Indemnity Insurance (but most have a pre-condition that parties involved have not discussed the RC) c) Taking our case to either the Upper Tribunal or small claims court.

    Questions:

    1) Does anyone have any experience of going to court over a similar issue ? Are there any set time lines in which a lack of response or corporation by one side, can allow the court make a favorable decision in the favour of the other party (i.e. us) ?
    2) If taken to court, what are the deciding factors ? - does having a planning permission from the local council mean anything in this context ? (as this is a bungalow set in the grounds of a block flats, we cannot use the example of others in our street who have broken/ignored the RC as a valid argument)

    We would like to avoid the legal action route but at this point we are left with little choice.

    Any input or advice is very much welcomed.

    If you require additional information or anything is not clear do let me know.

    Cheers,

    Danny
    Tags: None

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