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ARTICLE · 07 JULY 2015

Restrictive Covenant: Construction Of Permitted Use Of Land

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

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Planning permission was granted for a mixed use residential development, with permission for retail units, offices, restaurants, sports facilities and a school.

United KingdomReal Estate and Construction

Royal Mail Estates Ltd v Pridebank Ltd [2015] EWHC 1540 (Ch)

Summary

The land was subject to a restrictive covenant stipulating that the land could be used for certain Post Office purposes or planning use classes "or housing and purposes ancillary" to those identified uses "including offices and housing". The wording of the covenant was found to allow use of the land for housing.

Facts

Planning permission was granted for a mixed use residential development, with permission for retail units, offices, restaurants, sports facilities and a school.

A restrictive covenant contained in a transfer between the Royal Mail Estates Limited (the purchasers) and the British Gas Corporation (the original owner) stipulated the following:

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