Hi there, first time self builder in need of restrictive covenants advice

[Ms22011]

Hi there, 

 

Firstly I just want to say thanks In advance for taking time to read this and I appreciate any advice and feedback you can give me. 

 

Basic outline is: 

I own a corner plot house (number 5) with a large area of land to the side, front and back. 

I have successfully applied for and been granted full outline planning permission to build a new dwelling on the side of our current home. 

Just recently I sectioned off the land (where new plot will be - 5A) so it is inuncumbered. 

 

Whilst in the process of the TP1, the Solicitors informed me that there are restrictive covenants stated in the original title deeds dating back to 1988 which are enforceable by my local authority (the same local authority that approved the full planning permission) 

 

The restrictive covenants in question: 

I’ll upload the page below. 

States no other building or vehicle can be built or placed upon the land unless prior written approval off the local authority. 

 

My question is, does the planning permission supersede the original deeds given that beneficiary is the local authority and I have gained written approval by getting the planning permission approved by the local authority. 

 

I did look into getting an indemnity insurance policy via my solicitors who were dealing with the TP1 but the indem provider wanted me to provide:

 

• Copies of any objection letters, received by the local authority at the planning stage, for our consideration. If no objection letters were received, please confirm that a specific check has been made direct with the local authority to confirm that this was the case. 

 

 

There were no objections at the planning stage. I checked on the planing portal and it showed no objections or comments but they wanted a report from the local planning officer. I was thinking of contacting the local planning authority via email to ask but in doing so I was worried that me getting back In touch with them 18 months after the PP was approved, I’m at risk of raising a red flag and not being able to get the policy as I’ve contacted the beneficiary in question? 

Hope you can see my predicament and my worries here. 

 

Also, the indemnity policy in question covers the value of project rebuild at £310k, the policy itself is £695 and the first £20k of any claim is payable by myself. 

 

 

I just wanted to see what your take on the matter is and if you can offer any advice that would help me move forward with the project. 

 

• Is there a way to get what the indem policy providers wants without raising any flags? 
• Do I actually need to get a indem policy or should I not worry about it? 
• Also to note, I live in a close and most other houses in the close have placed driveways on the their front gardens and have added porch’s, side/back extensions etc which I assume would have binded their restrictive covenants also. 
• I’m sorting a self build mortgage at present to build the house in 5A, Do you know if the self build mortgage provider will also want an indemnity policy to cover this? 

 

Ps - This will be my first development so this is all new to me and I’m learning as I go. 

I wanted to get this sorted before I commence with the project as I was worried it could all go wrong or I’d struggle to sell in the future having binded the covenants? 

The solicitors have informed me I might struggle to sell to a new potential buyer if I cant get the policy, but it’s not so easy to get the policy without risking alerting them of the covenants I’m about to bind! I’m in a such a pickle! 

 

I can’t complete the TP1 until this is sorted which In turn is holding up my remortgage. 

 

Sorry for the long message and many thanks in advance if you help me. 

 

Thanks. 

[ProDave]

The covenant is separate to planning permission,  It just so happens that it is "the council" in both cases that need to give permission.

 

We had the same issue extending an ex council semi detached house,  I naively thought getting planning permission had satisfied the covenant, but when we later sold that house it turned out it had not.  That was solved by buying an indemnity policy to cover the covenant issue.

[nod]

We are currently dealing with restricted covenants on our second plots purchase 

We decided not to go down the indemnity route and have our solicitor get to the bottom of things The two people that added the covenants are deceased So it looks like they will be able to be removed from the deeds 

In your case I would look into who and why yours where added 

If they where add by the LA The fact that they have allowed planning permission should make them easy to remove 

[Ms22011]

25 minutes ago, ProDave said:

The covenant is separate to planning permission,  It just so happens that it is "the council" in both cases that need to give permission.

 

We had the same issue extending an ex council semi detached house,  I naively thought getting planning permission had satisfied the covenant, but when we later sold that house it turned out it had not.  That was solved by buying an indemnity policy to cover the covenant issue.

 Can I ask when you came to sell, what, if any evidence did the indemnity provider ask for to complete the insurance? 
 

I would get the indemnity insurance but they want me to contact the local authority to ask if their have been any objections at the planning stage. Which I know their we’re none. 
In contacting them I’m at risk of raising a red flag. 
 

Thanks ? 

[ProDave]

I did not contact anybody about the covenant.  I just sought planing permission and then building regulations from the council.  It was only some years later when selling that the issue arose and the solicitor put the indemnity policy in place to satisfy the buyer.

[Ms22011]

Ok, thanks for the info. 
 

I’m going to look more into it. Will try and get the indemnity policy in place but without alerting them of any breaches! However crazy that seems!? ?

 

[Ms22011]

40 minutes ago, nod said:

We are currently dealing with restricted covenants on our second plots purchase 

We decided not to go down the indemnity route and have our solicitor get to the bottom of things The two people that added the covenants are deceased So it looks like they will be able to be removed from the deeds 

In your case I would look into who and why yours where added 

If they where add by the LA The fact that they have allowed planning permission should make them easy to remove 

The covenants were added by the LA, if I try and get them to remove the covenants I can imagine it’ll be a long old road to sort out and could open up a massive can of worms! 
 

I’m going to go back and speak with my solicitor again. 
 

Thanks ?

[Temp]

54 minutes ago, Ms22011 said:

Ok, thanks for the info. 
 

I’m going to look more into it. Will try and get the indemnity policy in place but without alerting them of any breaches! However crazy that seems!? ?

 

 

Read the terms of the insurance very carefully because some have conditions that invalidate the policy if you contact the beneficiary in any way.

[Temp]

There are some rules that covenants have to follow or they can't be enforced. Typically they have to benefit nearby land and that land has to be identifiable. 

 

https://www.duttongregory.co.uk/site/blog/personalnews/freehold-restrictive-covenants-part-one

 

1. The covenant must be for the benefit of the covenantee’s land

2. The covenant was intended to run with the land

3. The party seeking to enforce the covenant must own the benefiting land

4. The benefit of the covenant has passed to the person seeking to enforce it

Continues...

 

Edited March 21, 2021 by Temp

[Temp]

Is there a section heading/paragraph for the covenants 1 to 12? Or is that 12.16?

Edited March 21, 2021 by Temp

[Ms22011]

24 minutes ago, Temp said:

Is there a section heading/paragraph for the covenants 1 to 12? Or is that 12.16?

I’ll upload that whole document minus any sensitive information. 
Bear in mind this is TP1 document that is splitting the land. There is also the original deeds, I think both contains the same restrictive covenants In Question. 
 

Thanks for all the advice. 
Much appreciated. 

[Temp]

TP1 doesnt really help. It requires you to comply with the covenants in the title referred to in section 12:15:1.  But you need to see all of that title to know if they are enforceable. If you dont have the rest of that doc you can normally download it from the (real) LR website for about £3.