What is a Restrictive Covenant on a Property?

Maybe you’re thinking of building an extension? Or turning your house into flats? Or maybe running a business from your living room? And maybe you’re worried that the restrictive covenant on your property could stop you in your tracks?

Restrictive covenants can limit what you can and can’t do with your property. Some are obvious, and others are decades old, buried in legal jargon and come with hefty consequences if ignored.

In this guide, we’ll break down what a restrictive covenant is, how to spot one and what to do if it causes problems when you’re trying to sell.

What is a restrictive covenant?

A restrictive covenant is a legal agreement that puts limits on how a property can be used. It’s tied to the property, not the owner, so it applies even when the place changes hands.

They’re often used by developers to preserve the look and feel of an area. Common ones are no caravans, no businesses from home, no extra buildings on the land.

They can also be placed by past owners, neighbours or management companies to protect their interests.

What does a restrictive covenant look like?

It might be as simple as: “Not to erect any building other than one detached house.”

Or it could be a list of bans covering everything from livestock to fences to parking caravans in the drive.

There’s no one-size-fits-all rule here. Some are clear, some are buried deep in Victorian legalese. And many buyers only discover them when a solicitor pulls up the title deeds.

Common examples of restrictive covenants

Restrictive covenants can vary, but some of the most common ones include:

• No building extensions or additional structures without permission
• No business or trade use of the property
• No sub-dividing the property into flats
• Restrictions on types of fencing or exterior alterations
• No parking of commercial vehicles or caravans on the property
• Limitations on property colour or materials

These conditions can apply to freehold properties and leasehold ones alike. And if you breach one, you could be taken to court.

Why do restrictive covenants exist?

It usually comes down to control and consistency.

Developers often want to keep a new estate looking uniform. That might mean banning sheds or bright pink paint, or stopping people from turning homes into noisy businesses.

In older properties, restrictive covenants can reflect social values of the time. Some are outdated, and some are nothing short of deeply problematic.

Thankfully, clauses that discriminate based on race, gender or religion are no longer enforceable. However, others are still enforceable today, even if they seem petty or pointless.

Are restrictive covenants legally binding?

Yes. If a covenant is registered on the title deeds, it’s usually binding on all future owners.

That said, not all covenants are actively enforced. Some may be so old that nobody remembers who benefits from them. Others may have been broken over the years with no consequences.

But don’t assume that this means you’re safe to ignore them.

If you breach an active restrictive covenant, the beneficiary (often a developer, management company or neighbour) can take legal action. You might be forced to reverse any changes you’ve made. In extreme cases, you could face an injunction or compensation claim.

How to check if your property has a restrictive covenant

You can usually find restrictive covenants in your property’s title deeds or Land Registry documents. If you’re not sure, you can:

• Request a copy of your title register and title plan from Land Registry
• Ask your solicitor or conveyancer to review the documents

If you’re buying a property, your solicitor should flag any restrictive covenants during the conveyancing process. If you’re selling, they’ll likely come up in the buyer’s legal checks.

Can you remove or change a restrictive covenant?

In some cases, yes. You have a few options:

1. Contact the beneficiary

If you can identify the person or organisation who benefits from the covenant, you may be able to ask them to remove or vary it. They might agree, often in return for a fee.

2. Apply to the Lands Chamber of the Upper Tribunal

If the covenant is outdated or unreasonable, you can apply to have it removed or modified. You’ll need to make a strong case, and you may need legal help.

3. Take out indemnity insurance

If a covenant has been breached and no one’s complained, you might be able to get indemnity insurance to protect against future enforcement. This won’t remove the covenant, but it offers peace of mind.

Bear in mind that trying to remove a covenant can take time and money. And if enforcement is likely, buyers may be put off.

How do restrictive covenants affect property sales?

Restrictive covenants can delay or derail a sale. Buyers may be nervous about restrictions on how they can use the property, and their mortgage lender may raise questions. This means your solicitor will need time to explain or work around the issue.

Some covenants can also reduce the value of your home if they limit potential renovations or extensions.

That doesn’t mean you won’t be able to sell, but it can mean:

• More time on the market
• More questions and back-and-forth
• Buyers walking away late in the process

If you’re under pressure to sell quickly, a restrictive covenant can be a real stumbling block.

What to do if you’re trying to sell with a restrictive covenant

Start by getting clarity. Check your title deeds, get legal advice and understand what the covenant actually means in practice. Some restrictions are tighter than others.

Then be upfront with your estate agent and your solicitor. The earlier you flag the issue, the easier it is to manage expectations and reassure buyers.

If the covenant’s unlikely to affect the buyer’s plans, it may not cause problems. But if it blocks things like extensions, subletting or business use, you may need to be flexible on price or timescales.

Need a way to sell without delays?

If you’re facing pressure to sell, or if a restrictive covenant is putting buyers off, we can help.

At Sell House Fast, we buy homes across the UK with no agents, no fees and no waiting around.

With us you get:

• A fast house sale, with completion in a matter of days in most cases
• No estate agents or hidden costs
• Support from real people who keep it simple
• A transparent, personalised process
• Certainty and speed, backed by years of experience
• Strict compliance with The Property Ombudsman

Be fully informed before you choose your next step. Get your free cash offer today to see how much you could get.