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ARTICLE · 06 NOVEMBER 2019

Q&A: Considering Covenants And Compensation

Charles Russell Speechlys
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I am the director of a property development company that recently purchased a detached dwelling house with a large garden on a residential estate, which is subject to a "one house per plot"

United KingdomReal Estate and Construction
Megan Davies
Megan Davies

I am the director of a property development company that recently purchased a detached dwelling house with a large garden on a residential estate, which is subject to a "one house per plot" restrictive covenant. We have obtained planning permission for the demolition of the current dwelling and the erection of two new dwellings in its place. This was strongly opposed by numerous residents who benefit from the covenant and live close to the development site, because they believe it will reduce the value of their properties and spoil their views. Our in-house surveyor considers that the development would have no effect on the value of the surrounding properties, and that we can make an application to the Upper Tribunal (Lands Chamber) to modify the restrictive covenant under section 84(1)(aa) and/or (c) of the Law of Property Act 1925 in order to allow the development to proceed. Could the company succeed in this application without having to pay any compensation?

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