If you have found a restrictive covenant in the title deeds of your property, you may be wondering what it will cost you to get it removed. Restrictive covenants can cause you some major problems if you want to build an extension onto your home or take out one of its existing features.
However, it’s imperative to know how much you will be expected to pay to remove the covenant in order to determine whether it’s really worth your while. Here, we’ll take a look at some of the most common restrictive covenants, how they can impact on your decisions, and what you can do about them so that you can be well informed.
What Are Restrictive Covenants?
Restrictive covenants are rules that are outlined in the title deeds of a property detailing the changes that can and cannot be made to the property, for example removing existing features or building additions onto the house.
Restrictive covenants typically refer to major alterations like converting the property into several separate flats or converting the loft into habitable rooms. Some other common restrictive covenants prohibit the construction of new buildings on the plot of land, or they may prevent a business from being set up on the property.
The idea of restrictive covenants is to primarily preserve an area or a building’s character. In cases where the ruling is old, or when it is not applicable any longer because of redevelopments in the local area or because the property requires modernisation, you may wish to look into the possibility of removing them from your title deeds.
How Much Will Removing Restrictive Covenants Cost?
There are a number of factors to take into account when working out the final cost of removing restrictive covenants from your property’s title deeds.
Firstly, you will need to pay a fee for lodging the application for the modification of the restrictive covenants. This will come in at around £880.
Next, you will need to pay a fee so that the application can be heard. This will cost you around £1100.
There is also a fee to pay if the tribunal determines the application with no hearing of £275.
If you need to apply for a time extension in order to comply with any direction or rule that the tribunal has given, you will need to pay another fee of £110.
Should a hearing be required to determine the entitlement of the objector to make an objection to the application, this will cost another £550.
Finally, there is a fee of £220 payable so that the tribunal’s final order can be drawn up.
How Are Restrictive Covenants Removed From Title Deeds?
To lift restrictive covenants, you will need to pay a number of different fees to the Land Tribunal and there could be other legal costs to pay too. Before you make an application, you will have to determine whether or not the covenants are still able to be enforced.
Should the covenant no longer be enforceable, you can simply ask whether the Land Registry could take if off the property’s deeds. In order to do this, you need to make an application for the restrictive covenant to be removed.
Applications to modify or remove restrictive covenants may take as long as 18 – 24 months before they finally go through. Should the party that controls the covenants still be able to enforce the ruling, it’s always worth considering negotiation, but it is very likely that they will want some compensation if the agree to modify or remove it.
Should the controlling party demand an amount of compensation that appears to be unreasonable, you have the option to make an application to the Land Tribunal asking for it to be altered or removed. In the event of any legal issues, the Upper Tribunal’s Lands Chamber will be able to help.
You will need to pay a fee of £880 when you make an application to lift restrictive covenants in your title deeds. Should the application then progress on to a hearing, you will need to pay another £1100 fee. Should no hearing be required to reach the decision, you will pay a £275 fee.
Should you require more time in order to carry out the directions given by the tribunal, a fee of £110 will need to be paid, while a £550 fee will be needed to be paid if it is necessary to determine whether somebody has an entitlement to object to the application.
If you are successful £220 needs to be paid for all of the paperwork that relates to the final decision of the Tribunal.
You may also have some other legal costs to pay which will vary depending on your unique case. You can find full information about applying for restrictive covenants to be removed and the costs involved on the Gov.UK website.
What Are The Most Common Restrictive Covenants?
You will find it stated on your title deeds if your property has any type of restrictive covenant affecting it. If you are unable to find your title deeds, it’s possible to contact the Land Registry to order a new copy.
The office copy entries or title documents should contain the restrictive covenant’s wording in the Charges Register section. Potentially it may refer to a transfer document or separate convenance with the covenant’s original rules. If this is the case, you will need to find the extra document.
Some of the most commonly seen restrictive covenants include restrictions on the height of a building, the need to obtain consent for alterations, not using front gardens for parking boats, caravans, or commercial vehicles, prohibiting CCTV or satellite dishes from being installed, keeping gardens tidy, prohibiting the playing of musical instruments at specific times and restrictions on pets.
You may find that one or more of these affects your property, so you should always check your title deeds before attempting to carry out any kind of work on your home.