Restrictive covenants can stop buyers dead in their tracks.
Last year, a client discovered their 1960s home couldn’t be extended. Ever. A Victorian-era covenant banned all alterations.
The buyer pulled out immediately.
But here’s what most people don’t realize: restrictive covenants aren’t always deal-breakers.
I’ve closed many sales involving covenant restrictions. From building bans to business prohibitions, each taught me buyer tolerance levels.
The secret isn’t removing the covenant.
It’s finding buyers who don’t need what’s restricted.
This guide reveals my covenant assessment framework. You’ll discover which restrictions buyers ignore and which kill deals instantly.
Plus: The three buyer types who actually prefer covenant-protected properties.
Your restriction might be someone else’s perfect protection.
- Understanding Restrictive Covenants in Property Sales
- Common Types of Restrictive Covenants
- Selling Options for Properties with Restrictive Covenants
- Three Buyers Who Like Covenant-Protected Properties
- Legal Requirements and Disclosure Obligations
- Dealing with Problematic or Outdated Covenants
- Why Choose Property Buyers Today for Restrictive Covenant Property Sales
Understanding Restrictive Covenants in Property Sales
Restrictive covenants are rules that stop you from doing certain things with your house.
I’ve helped sellers who couldn’t build extensions because old covenants banned them. These rules were written into title deeds when houses were first built. They stay with the house forever unless legally removed.
Restrictive covenants stop you from doing things like building shops or keeping animals. Positive covenants make you do things like maintain shared areas.
Common covenant rules include no business use, no extensions, and keeping gardens tidy. Some ban certain building materials or fence heights. Victorian houses often have covenants stopping pubs or factories.
These rules were created to protect neighbourhoods and keep house values high. Developers wrote them to control how areas looked and felt.
Covenants can cut thousands off your house value.
Buyers worry about what they can’t do with the house. Planning permission doesn’t remove covenant rules. You need separate legal action to change or remove old covenants.
Some covenants become unenforceable over time if nobody objects to breaches. But you can’t rely on this without proper legal advice.
Always tell buyers about any covenants affecting your house before they make offers.
Common Types of Restrictive Covenants
Restrictive covenants are old rules that stay with your property forever. They control what you can do with your home and garden. Breaking these rules can cause legal problems and hurt property values.
Building Restrictions
These rules stop you from building certain things.
Some covenants ban extensions or conservatories completely. Others limit how big new buildings can be. You might not be allowed to build close to boundaries.
Check your deeds before planning any building work. Selling property with a restrictive covenant becomes harder if you break building rules.
Use Restrictions
These rules control what you can use your property for.
Most residential covenants ban business activities. You might not be allowed to run shops or offices from home. Some rules even stop you from taking in lodgers.
Working from home might break old covenants. Check before starting any business activities.
Style and Material Rules
Some covenants control how your property must look.
You might have to use specific roof tiles or brick colours. Windows and doors often need certain styles. Some areas ban satellite dishes or solar panels.
These rules keep areas looking the same. But they can make improvements very expensive.
Height and Boundary Limits
Covenants often control building heights.
Houses might be limited to two storeys maximum. Fences and walls have height restrictions, too. Garden sheds and garages need to follow size rules.
Measure everything before building new structures. Breaking height rules is easy to spot.
Garden Maintenance Rules
Some covenants make you keep gardens tidy.
You might have to cut the grass regularly. Front gardens often need flowers or shrubs. Some rules ban washing lines or rubbish bins.
Neat gardens help property values. But maintenance costs money and time.
Parking and Vehicle Rules
These rules control what vehicles you can keep.
Commercial vehicles like vans might be banned. Some areas limit the number of cars per house. Caravans and boats often aren’t allowed.
Check rules before buying work vehicles. Breaking vehicle rules upsets neighbours quickly.
Pet and Animal Bans
Many covenants control what animals you can keep.
Dogs and cats might be banned completely. Some rules limit pet numbers or sizes. Farm animals are usually not allowed in residential areas.
Pet rules are hard to enforce. But neighbours can take legal action if needed.
Business Activity Limits
Most residential covenants ban commercial work.
You can’t run shops or factories from home. Some rules ban any business visitors. Online businesses might be okay if quiet.
Check the HM Land Registry records for exact business restrictions. Modern work patterns sometimes clash with old rules.
Selling Options for Properties with Restrictive Covenants
Here are the 3 primary approaches to sell your property when restrictive covenants apply…
Estate Agents
The conventional route poses difficulties for houses with restrictive covenant limitations:
- Typical sale timeframe: 12-18 months (considerably extended – buyers are cautious about covenant restrictions)
- 2 out of 3 sales fail to complete (the majority collapse when purchasers discover covenant limitations)
- You require agents familiar with restrictive covenants and property law
- You’ll encounter these expenses:
- Agent fees (up to 3%)
- Legal costs (up to £4,000)
- Covenant investigations and legal reports (£500-£1,500)
- Covenant modification or removal costs (£2,000-£15,000)
- Upper Tribunal applications if required (£1,000-£5,000)
- Very limited buyers are interested in covenant-restricted properties
Property Buyers Today
When restrictive covenants make your property challenging to market:
- We can complete within just 7 days
- No financing difficulties or covenant resolution needed
- What you gain:
- No agent commissions
- We handle legal expenses
- No property viewings – we buy covenant-restricted houses as they stand
- No covenant removal costs – we manage restrictive covenant issues ourselves
- We understand covenant law and modification procedures
- Completion date you can depend on
- Trade-off: Obtain up to 85% of property value (often superior after legal costs and prolonged delays)
Expert cash house buyers like Property Buyers Today understand restrictive covenant complications and handle all procedures.
Property Auction
Auction selling attracts purchasers who deal with covenant-restricted properties:
- Timeline: 3-4 months
- The sale finalizes instantly when the hammer falls
- Important factors:
- Property sold as-is – bidders understand all covenant restrictions
- Draws developers and renovation specialists
- Suitable for covenant projects – attracts appropriate buyers
- Must declare completely about restrictive covenants in the sale documentation
- Wait 4-8 weeks until the auction date
- Wait 28 days to finalize the transaction
- Registration fees (up to £1,000)
- Auctioneer charges (up to 6%)
- Full restrictive covenant details must be shared with all bidders
Check our guide on selling a house at auction to learn how this process works for properties with restrictive covenants.
Three Buyers Who Like Covenant-Protected Properties
Now, there may be some specific types of buyers who will actually like a restrictive covenant. Although they are not always easy to market to, unless you have a list of targeted buyers already.
Reason: These buyers want a nice area where house values stay high because of set rules.
Benefit: They like that restrictive covenants stop bad changes that could hurt the neighbourhood’s look and their house value.
Reason: Developers look for chances to build communities that fit their vision.
Benefit: Covenant-protected houses give them confidence that nearby houses will follow certain standards. This helps make sure their building project succeeds and people want to live there.
Reason: People who know exactly what they want to do with their house look for covenants that help their goals.
Benefit: If they’re buying in a well-established area with clear rules or plan to build something that fits the covenant rules, the limits give them security. They know their future use won’t be hurt by what the new neighbours do.
Legal Requirements and Disclosure Obligations
You must tell buyers about all restrictive covenants affecting your house.
I’ve seen sales collapse when buyers found hidden covenant rules during legal checks. Your solicitor must examine all title deeds to find every covenant that affects the property. Missing even one rule can cause serious legal trouble later.
Local authority searches show planning limits that work alongside covenants. Your solicitor needs to find who benefits from each covenant.
Some covenants protect specific neighbours while others protect whole estates. You might need to contact these people before selling. This can slow down the sale process significantly.
Insurance can protect against some covenant breach claims. But it won’t fix problems if you’ve already broken important rules.
Your solicitor has a duty to explain what each covenant means.
They must tell you if any rules might stop future development or use. Special contract terms protect both buyer and seller from covenant disputes. The conveyancing process when selling includes checking all covenant compliance carefully.
Buyers become legally bound by all covenants when they buy your house. They can’t claim they didn’t know about the rules that were properly disclosed.
Get a full covenant report from your solicitor before marketing your property.
Dealing with Problematic or Outdated Covenants
Old covenants can stop you from using your property properly. Some rules are so outdated that they don’t make sense anymore. You have several ways to deal with problem covenants.
Applying to Upper Tribunal
The Upper Tribunal can remove or change old covenants.
You need to prove the covenant is outdated or unfair. Applications cost £770 plus legal fees. The process takes 6-12 months to complete.
You must show the covenant blocks the reasonable use of your property. Success rates are around 60% for good cases.
Get expert legal help before applying.
Negotiating Covenant Release
Sometimes you can get permission from people who benefit from covenants.
Find out who has the right to enforce the rules. Offer to pay them for releasing the covenant. Some people agree for £500-£5,000, depending on property values.
Get any agreement written down properly. Your solicitor should handle the legal paperwork.
This is often cheaper than going to a tribunal.
Getting Indemnity Insurance
Indemnity insurance protects you if someone enforces old covenants.
Insurance costs £100-£800 for most properties. It covers legal costs if someone takes action later. Policies last forever once you buy them.
Insurance works well for very old covenants that nobody enforces. It doesn’t let you break rules openly.
Proving Covenants Are Outdated
Some old rules don’t apply to modern life anymore.
Covenants from 100 years ago might ban things that don’t exist now. Changed areas might make old rules pointless. Public interest sometimes overrides private covenants.
Collect evidence showing how the area has changed. Take photos of similar properties, breaking the same rules.
Courts prefer clear proof that rules are obsolete.
Getting Professional Help
Solicitors who specialise in covenants understand complex rules.
They know which covenants can be challenged successfully. Expert advice costs £200-£500 per hour. Good lawyers often save money by avoiding failed applications.
Choose solicitors with tribunal experience. Ask about success rates for similar cases.
Bad legal advice wastes time and money.
Costs and Timescales
Different approaches take different time and money.
Negotiating releases costs £500-£5,000 plus legal fees. This takes 4-8 weeks if people cooperate. Tribunal applications cost £770 plus £5,000-£15,000 legal fees.
Tribunals take 6-12 months to decide cases. Insurance costs £100-£800 and works immediately. Legal advice costs £200-£500 per hour.
Budget extra money for unexpected problems.
Risk Assessment
Consider what happens if you ignore problem covenants.
Some old rules are never enforced by anyone. Others could trigger expensive legal action. New neighbours might enforce rules that old ones ignored.
Check if anyone has legal rights to enforce covenants. Look at recent sales of similar properties. Ask local estate agents about covenant problems.
Weigh the costs of fixing problems against the risks of ignoring them.
Why Choose Property Buyers Today for Restrictive Covenant Property Sales
If you want to sell your house fast when it has restrictive covenants, we might be perfect for you.
I’ll be honest with you. We will offer less money than an estate agent would tell you to ask for. But we will always give you our best price and make everything easy for you.
We have bought restrictive covenant properties in just 10 days from when we made our offer. This is why many homeowners pick us to work with…
Sell your house fast with Property Buyers Today. Skip the hard parts of selling houses with restrictive covenants.
Speed
Most house sales take months, but we can buy your property in as little as 7 days.
This quick process is perfect if you need to move soon or want to avoid being stuck in a long chain of buyers and sellers. We have the cash on hand so don’t need to wait for mortgages or a chain to collapse.
Guaranteed Sale
Did you know 1 in 3 sales fall through on the open market?
We know how frustrating it is to get 6 months into a process and have a buyer pull out.
When we give you the final price for your house, that’s the amount you’ll get. Guaranteed!
No Costs
You won’t face any costs with us.
We handle all the expenses involved in buying your property, including legal fees and surveys. You get cash in your bank when the sale is complete, and there are no surprise estate agent commissions to worry about.
No Stress Or Hassle
Our team supports you through the whole selling process.
We keep you updated about what’s happening and answer any questions quickly. You’ll always understand what’s going on with your sale and what happens next.
Free Property Valuation
Our property experts will value your house at no cost to you.
They look carefully at your property and check local market prices to give you an accurate figure. This professional service comes with no obligations.
No Viewings Required
Forget about cleaning and tidying for viewings.
We don’t need multiple visits or open houses to make our offer. This means no strangers walking through your home, and no disruption to your daily life.
All Properties Welcome
Whether your house needs work or is in perfect condition, we’ll buy it.
We have experience with all types of properties and conditions. This means you can sell your house to us no matter what state it’s in.
Professional Legal Service
Our expert team manages all the legal requirements for you.
We work with experienced property lawyers who make sure everything runs smoothly, and put your property at the top of their list. This gives you peace of mind that your sale is being handled properly from start to finish.
