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How To Sell Land With Restrictive Covenants?

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If you are searching for whether you can sell land with restrictions on it, then you have arrived at the right property website. 

In this article, we will explore a restrictive covenant, the types of restrictive covenants, problems that arise when restrictive covenants are breached and finally, how to sell your land with a restrictive covenant in place.  So, without further delay, let’s get into it.

Table of Contents

So, what is a restrictive covenant?

A restrictive covenant is a legal obligation imposed in a document created historically about the property or a current transaction by the Seller on the Buyer of a property. 

Normally restrictive covenants are placed to outline things you can or cannot do on that land.  Restrictive covenants are recorded against the property title and then “run with the land”. 

This means restrictive covenants apply to subsequent property owners as they are registered against the property’s title with the Land Registry.  This makes it incredibly difficult to sell land or property, but there is a way out.

Properties with restrictive covenants can be difficult to sell because banks prefer properties that don’t have title issues or restrictions.  Agricultural properties with restrictive covenants to prevent future development are the most common types that we come across. 

On a more rare type of properties with restrictive covenants include houses that can’t be converted into shop fronts, pubs that must remain as pubs and cricket fields that won’t allow for housing development.

It is not worth selling a house with land to a developer without removing all restrictions first.

Types of restrictive covenants

The most common types of restrictive covenants include the following:

  • Restrictions on access over land, such as a right of way.
  • Restrictions within the wording of leases, such as changes to internal structures that will require freeholders’ permission or prescribed usage of property, type of flooring used in a flat, time for playing music or what types of pets can be kept within the property.
  • Restrictions on residential developments on the land or any new building.
  • A prohibition on using land for any operating any trade or business activities.

What if there are restrictions or they have been breached?

In all cases where restrictive covenants are in place but these have not been breached and where such restrictions are understood and accepted by a buyer and his or her lenders, there may be no difficulty.

However, problems can arise with property transactions where restrictions on the title or in a lease have already been breached.  The issue will then be how old the breach is, what type of breach it is, does the protected party know about it, and the buyer’s lender’s attitude to the potential risks associated with the property being bought after a covenant has been breached.  A buyer will often walk away from the transaction in all these breaches.

A more significant issue is if existing restrictive covenants have not been breached. Still, the existence of the covenants will impact either the buyer’s use of or plans for the property or harm the property’s intrinsic value.

It may be possible to get the restriction removed, but this can be extremely difficult in situations where the covenant has been recorded against the title to the property for years or decades, and it can be very difficult to establish who now owns the benefit of the restriction.

You probably have tried to sell land with restriction on it, and it is possible that your buyer was not able to purchase the land because of a restrictive covenant in place. 

Most solicitors will advise their clients not to buy any property or land with restrictive covenants in place – this is because restrictions can often be so punitive that the land or property could be worth less than its original purchase price once acquired. 

Furthermore, many lenders refuse to lend against land or property with restrictive covenants in place, as they are worried about recovering their funds in the event of repossession or property turning into negative equity.

Cottage with miles of rural land
It is best to contact a solicitor to see if a restriction on a land can be removed easily.

Can I sell a house with a restrictive covenant?

Restrictive covenants can be very off-putting for potential buyers as they recognise that these are very hard to remove.  We’ll buy your house with restrictive covenant.

Does a restrictive covenant devalue a property?

Yes restrictive covenants prevent change of use and therefore devalue a property.  Buyers don’t like restrictive covenants as they can cause them issues during their ownership or when it comes to sell it.

Can you sell a property with a restriction on it?

A restriction on a property title is an entry on the title deed which prevents you from selling the property, taking out a mortgage against or transferring it to a loved one.  We are happy to help you remove the restrictive covenant.

How long does a restrictive covenant last on a property
A restrictive covenant can run indefinitely even if its original purpose is now obsolete.

How long does a restrictive covenant last on a property?

If a restrictive covenant is attached to a land, it is said to be ‘with the land’.  This means it will apply to the land if it has been sold.  A restrictive covenant can run indefinitely even if its original purpose is now obsolete.

How to sell your land with a restrictive covenant in place

Property Saviour is a specialist property buyer who can help you sell land with restrictions.  We buy all sorts of land and property with all types of restrictive covenants and even properties with seriously complex legal issues such as breaches of covenants, defective leases and missing freeholders of restrictive covenants. 

If you are considering selling your land with a restrictive covenant, why not contact Property Saviour and see how we can help you?

We will buy all types of land with restrictive covenants if it meets our investment criteria. We have cash ready to buy your land or property with a restrictive covenant and will also pay for your legal fees towards selling your land or property. 

We will make you a fair cash offer with a quick completion date that suits all parties.  So why not get a no-obligation free offer from us today?

Sell with certainty & speed

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  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
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