A restrictive covenant is an obligation that can affect
freehold land because conditions have been placed on its use in the
past.
For example, a family may own a large field, which they sell to
a house builder. However, because they intend to live next door on
their farmland, they may insist that a covenant is included that
prohibits the field land from being used for anything other than
residential purposes.
Alternatively, a covenant may be included that states no houses
built on the new site can ever be used for a business. In modern
times, and given the advent of homeworking post-COVID, this
restriction can cause an issue for many homeowners.
Another example of a restrictive covenant is when a building
plot is sold, and the seller imposes a covenant that states only
one house can be built on the plot. Many years later, a developer
wants to do some infill building and build additional properties on
the site. If the person with the benefit of the covenant is