Right to buy - covenants

[newmoon]

Dear members

I have bought an ex-council home couple of years ago. It was bought from council by the second to the previous owner in 2001.

This house has got land on the side, and I’ve got planning permission to build a new dwelling. There is a covenant on the RTB sale deed which states that I need to get consent of the council if I erect any additional buildings. I believe that this covenant is something very general one on all RTB houses.

What is the best way to take it forward, approach the council legal team to get consent or get an indemnity insurance.

I worry that council could ask for a ransom to provide consent. As per Regina Vs Braintree decision council should not ask for overage or future development value of the RTB property but still wonder whether council can foul play and state that I am not the original RTB buyer etc. Any thoughts or similar case you have come through. Property is in a london borough and it’s a corner dwelling with no other council home adjacent to my house.

Thanks

[Pezza54]

Write to the council for their consent.
You have planning permission to build a new dwelling so you shouldn't have a problem obtaining consent.
Planners would have obtained any objections and comments from your neighbours about the new structure. If they did receive any objections the planners have decided the objections were not significant to refuse your planning application.

[Pezza54]

I meant to add that users on another forum have faced the same concern as yourself and received council consent without a problem.

[newmoon]

Pezza54 thanks for your comments

Reached out to the council and they say that they will charge to release the covenant based on the development value of the new house.

“By enabling the covenant go to built a house, the house is valuable and there is a site value that council is entitled to a share of”

That is the exact words from the council so wonder how do I take this forward!

thanks

[Pezza54]

You paid the LA when you made the planning application, they granted planning permission. It is the same LA that included the standard covenant in the deeds. Why did.they not warn you that the LA would seek significant payment from you to remove the covenant?
You should write back and point this out. Also make them aware how much additional council tax they are going to receive each year for years to come.
Good luck

[Pezza54]

If the LA still refuse to remove the RS, make a complaint, then if necessary refer your dispute to the local government Ombudsman.
Your case seems similar to Regina vs Braintree Council. What your LA wants goes against the principles of RTB scheme.
Indemnity insurance for RS is usually only where the covenantee does not know the covenantor.

[islandgirl]

I doubt that planning and other departments talk to each other. After all you can get planning on land you do not own. All planning look at is, well, the plans, not the legal stuff behind it. There would be in my opinion no requirement to warn the OP about anything. I would expect that the LA would want something back. You will need to ask how much.

[newmoon]

Thanks Pezza54 and Islandgirl.

I understand your point in terms of LA not talking to each other department.

Is it lawful though asking for a share on development value without any risk? What will they argue if I put forward Braintree Vs Regina case? Please direct if there was any recent or similar situation from other members.

I am already paying them 15k CIL plus spent 25k on architect, planning fees, pre planning fees, suds, energy assessment, environment assessment, tree survey etc etc…

Thanks

[islandgirl]

Having read the case you could write to the council's solicitor cc whoever you have spoken to thus far and ask why that judgement does not apply in your case and say you believe it does. You have nothing to lose!

[Milopuppy]

Me and my partner bought a house under the right to buy scheme 10 years ago. We have recently been approached by a building developer to purchase the side of our garden to erect possibly a 2 bedroom house.

However I am concerned there is a covenant not to build “any additional building or structure” unless approved by the council.

We are worried that the council could ask for a ransom and charge whatever they wish to provide consent. We are considering to have an options agreement with the building developer to put a ceiling price for such consent.

Please can someone provide us any support you can - many thanks in advance.