Restrictive Covenant

[JRG11]

does anyone have any idea how compensation is determined for lifting a Restrictive Covenant in a property.
i am looking to build a nanny flat for my disable
mother in my rear garden but there is a covenant
basically stating no buildings away from the main property
can be used for habitation.
Neighbour not the friendliest sort and would most likely drive a hard bargain to lift it.
So it would be beneficial to know how what the criteria is for evaluating their “loss” of the restriction or even how the Courts would determine compensation if it went down
this route...

[JRG11]

I assume no-one knows anything !

[des8]

I think you'll find there has been no answer as there is no straight forward answer.

Your neighbour might be amenable to having the covenant lifted or varied if you pay him enough,
Even if the Upper Tribunal (lands chamber) agrees to lift the covenant in spite of your neighbours objections (if he does object) you could still find yourself paying his costs, as well as unknown compensation to him.
Sometimes compensation is equivalent to the drop in value of the neighbouring property plus an amount for disturbance caused by proposed building works,
or sometimes it is calculated on the uplift in the value of your property
or sometimes on loss of amenity value.

[JRG11]

Thanks Des8, that’s exactly why I asked the question as they’re appeared to be little or no worthwhile info available online...
Thanks for your reply and very informative.

[JRG11]

Just one further question. If I were to just go ahead and breach the Covenant would the neighbour have to self fund any enforcement or would his legal protection insurance cover fund his legal costs to enforce the Covenant.
Just trying to ascertain the likelihood of him enforcing it . Obviously if he is self funding he may be a little reluctant to go down that road.

[des8]

As the covenant benefits his land it is quite possible that his legal expenses insurance (if he has any) will pay his costs.

I would caution against just breaching the covenant as it could well cause problems down the line if and when your property comes to be sold.
You will effectively be asking the buyer to take on responsibility for you breaching the covenant, because any enforcement action could be taken against the owner of the property at that time.