I am buying a house with a number of covenants. What does this mean?

Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she explains the complex world of covenants…

My solicitor says the house I am buying comes with a number of covenants. What does this mean?

Covenants are a right or restriction that affects the use of a property. They transfer to a new owner with the title and can be both positive and negative.

‘Restrictive covenants’ are usually positive and can be found in both freehold and leasehold titles. They are rules preventing certain things being done to the land upon which the property sits, for example, keeping animals or using it for business purposes.

Other typical covenants include things such as keeping a fence in good repair, or not using the property as anything other than a residential dwelling. The person who has the benefit of the covenant (usually the landowner) has the right of enforcement.

How often are covenants used?

All properties have some form of covenants in their title. Your solicitor will make you aware of what they are and how they may restrict your use of the house.

It is common for a leasehold property to have a covenant that states you must not make any structural alterations or erect any extensions without consent from the landlord. In these circumstances, your solicitor will provide you with contact details for the party that benefits from the covenant, so you can approach them if you decide to carry out improvements of this nature. It will also be necessary to ensure any appropriate consents are obtained from the seller’s solicitor in respect of any work that has already been undertaken.

If the party that benefits from the covenant is absent or difficult to contact, your solicitor might recommend putting an indemnity insurance policy in place to cover you, your mortgage lender and any future owners of the property against a claim for potential breaches. This will be at the seller’s expense and will run indefinitely.

I have an issue with one of the covenants on the leasehold property I wish to buy. Is there anything I can do?

You may wish to investigate buying the freehold title for the property, which could allow you to have some of the covenants lifted. However, as I explained above, covenants can be placed on freehold properties too, so there is no guarantee you won’t still have to comply.

It is highly unlikely the party who benefits from the covenants will look to police them by carrying out inspections or drive-bys. That said, your solicitor will check they have all been complied with by the previous owners and make you aware of any issues, so you understand the current position before proceeding with your purchase.