Tweet
Restrictive Covenant Questions
Hi All,
Wondering if you could help. We are looking at purchasing a new build property with adjoining paddock which we plan on applying for permission to change to domestic equestrian use. However the Title Absolute on HMLR includes a restrictive covenant requiring consent of a previous vendor for sale of the property which the current vendor says is related to an overage/uplift clause.
(14.11.2017) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge, not being a charge registered before the entry of
this restriction, is to be registered without a written consent signed by John [REDACTED by OP] and Shelagh [REDACTED by OP] of [Address REDACTED by OP] or their personal
representatives or their conveyancer.
Our conveyancer upon hearing there may be an overage clause has dropped us like a rock as they do not feel they have enough specialisation in this area so we are currently looking into alternatives but my main questions are, how common are these sort of agreements? I believe the purpose of this one was to discourage the developer of the new builds to build on the paddock but could this impact our application for change of use planning permission.
I've come across them on a few properties with land that we have been considerign but didn;t realise until now how negatively some conveyancers and lenders take them. I just assumed becuase I;d seen a few that there must be a solution.
Finally and maybe a bit of a morbid one. The orginal vendors named on the restriction are both 86 years old. What would happen if in a few years they passed away? Would we be stuck unable to sell because we could not receive consent from the named vendors? Would it pass to their successors? Or would the restriction be removed?
*
Wondering if you could help. We are looking at purchasing a new build property with adjoining paddock which we plan on applying for permission to change to domestic equestrian use. However the Title Absolute on HMLR includes a restrictive covenant requiring consent of a previous vendor for sale of the property which the current vendor says is related to an overage/uplift clause.
(14.11.2017) RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge, not being a charge registered before the entry of
this restriction, is to be registered without a written consent signed by John [REDACTED by OP] and Shelagh [REDACTED by OP] of [Address REDACTED by OP] or their personal
representatives or their conveyancer.
Our conveyancer upon hearing there may be an overage clause has dropped us like a rock as they do not feel they have enough specialisation in this area so we are currently looking into alternatives but my main questions are, how common are these sort of agreements? I believe the purpose of this one was to discourage the developer of the new builds to build on the paddock but could this impact our application for change of use planning permission.
I've come across them on a few properties with land that we have been considerign but didn;t realise until now how negatively some conveyancers and lenders take them. I just assumed becuase I;d seen a few that there must be a solution.
Finally and maybe a bit of a morbid one. The orginal vendors named on the restriction are both 86 years old. What would happen if in a few years they passed away? Would we be stuck unable to sell because we could not receive consent from the named vendors? Would it pass to their successors? Or would the restriction be removed?
*
