What is covenant consent when buying a property?
If you are in the process of buying a home or investment property in the UK, this is a question you really should not ignore. Many buyers assume that once they own a property, they can do whatever they like with it. In reality, that is not always true.
When you buy a property, you are not just buying bricks and mortar. You are also buying a legal title, and that title may contain covenants. Some of those covenants may require you to get covenant consent before you make changes or use the property in a certain way.
What Is a Covenant on a Property?
A covenant is a legal promise written into a property’s title deeds. It sets out things you must do or must not do in relation to the property.
When you buy a property, you automatically agree to follow any covenants attached to it. You cannot opt out of them simply because you were unaware of them.
There are two main types of covenants:
Restrictive Covenants
A restrictive covenant stops you from doing something. Common examples include:
- Not building an extension
- Not using the property for business purposes
- Not changing the external appearance
- Not parking certain vehicles, such as vans or caravans
Positive Covenants
A positive covenant requires you to do something, such as:
- Maintaining a shared driveway
- Contributing to the upkeep of communal areas
- Maintaining boundary walls or fences
Covenants usually benefit another person or organisation, known as the beneficiary or covenantee. The person who must comply with the covenant is the covenantor.
What Is Covenant Consent?
Covenant consent is formal permission from the person or organisation that benefits from a covenant.
You need covenant consent when:
- A restrictive covenant prevents you from doing something, but allows it with consent, or
- A positive covenant requires you to do something, and you want permission not to do it
In simple terms, covenant consent is written approval that allows you to act despite the covenant.
It is important to understand that covenants usually run with the land. This means they still apply even if:
- The covenant was created many years ago
- The property has changed owners several times
Why Covenant Consent Matters When Buying a Property
When you are buying a property, your mindset is usually focused on:
- Moving in
- Decorating
- Renovating
- Extending
- Letting the property if it is an investment
Covenant consent can directly affect all of these plans.
If you ignore covenant consent:
- You may not be able to carry out your planned works
- You could face legal action later
- The property may become harder to sell in future
- You may have to pay legal costs or undo work already done
This is why covenant consent is a key legal issue during conveyancing.
Which Properties Can Be Affected by Covenant Consent?
Covenant consent can affect any property, regardless of:
- Age
- Location
- Value
It applies to:
- Freehold properties
- Leasehold properties
- Houses
- Flats
- Buy-to-let investments
Covenant consent is more common in leasehold properties, particularly flats, where freeholders often impose strict controls. However, many freehold houses also have restrictive covenants, especially on:
- New build estates
- Former council houses
- Properties sold by developers or large landowners
When Do You Need Covenant Consent?
You may need covenant consent in many everyday situations, including:
Making Alterations
You may need covenant consent if you want to:
- Remove internal walls
- Convert a loft
- Add a conservatory
- Build an extension
Even internal changes can require consent, especially in flats.
Building on the Land
Some covenants restrict:
- Building on gardens
- Adding outbuildings
- Restricting neighbours’ light or air
Even if building is not expressly banned, a covenant may still limit the impact of development.
Changing How You Use the Property
You may need covenant consent to:
- Run a business from home
- Use the property as a buy-to-let
- Use it as an HMO
- Keep animals other than domestic pets
Everyday Restrictions
Some covenants seem minor but can still matter, such as:
- Hanging washing outside
- Painting the property a different colour
- Erecting fences
- Parking vans, boats, or caravans
Covenant Consent vs Planning Permission
A very common mistake buyers make is assuming that planning permission is enough.
It is not.
Covenant consent and planning permission are completely separate:
- Planning permission is granted by the local council
- Covenant consent is granted by a private individual or organisation
You may need:
- Both planning permission and covenant consent
- One but not the other
- Neither, depending on the situation
Getting planning permission does not override a restrictive covenant.
How to Find Out If You Need Covenant Consent
You can find out if covenant consent applies by:
- Checking the title deeds
- Reviewing the Land Registry title
- Asking your solicitor or conveyancer
Covenants are often written in complex legal language. It is very easy to misunderstand them if you are not legally trained.
Before you exchange contracts, your solicitor should:
- Tell you whether covenants exist
- Explain what they mean
- Warn you if covenant consent may be needed
If you already own the property, a solicitor can review the title for you before you start any work.
How to Obtain Covenant Consent
If covenant consent is required, it should ideally be obtained before you carry out the work.
The process usually involves:
Identifying the Beneficiary
You need to find out who has the benefit of the covenant. This could be:
- A developer
- A freeholder
- A neighbour
- A previous landowner
- A local authority
Even if the original beneficiary no longer exists, the covenant may still be enforceable.
Making a Formal Request
You usually need to:
- Submit details of the proposed works or use
- Request written consent
- Pay a reasonable administration fee
Reasonableness
In many cases, covenant consent cannot be unreasonably withheld, but what is “reasonable” is not always clear.
Because of this uncertainty, legal advice is strongly recommended.
What Happens If You Do Not Get Covenant Consent?
Failing to obtain covenant consent is known as a breach of covenant.
Possible consequences include:
- Nothing happens, if the breach is not noticed
- Retrospective covenant consent may be negotiated
- The beneficiary may seek an injunction
- You may be forced to undo the work
- You may have to pay damages
- In extreme leasehold cases, the lease could be forfeited
Problems often arise later when you try to sell the property, as buyers and lenders will check for breaches.
Can Restrictive Covenants Be Challenged or Removed?
In some situations:
- A covenant may be outdated
- Poorly drafted
- No longer relevant
You may be able to apply to the Upper Tribunal (Lands Chamber) to have the covenant:
- Discharged
- Modified
- Relaxed
This can be expensive and time-consuming, so legal advice is essential.
Covenant Consent When Selling a Property
If you are selling a property, covenant issues can:
- Delay the sale
- Reduce the value
- Cause buyers to pull out
It is sensible to:
- Review covenants early
- Resolve breaches if possible
- Seek advice before marketing the property
In some cases, addressing covenant consent issues can actually increase saleability.
Covenant Consent and Indemnity Insurance
If covenant consent was not obtained in the past, indemnity insurance may be an option.
This insurance:
- Protects against enforcement action
- Covers legal costs and compensation
- Is often required by mortgage lenders
However, indemnity insurance usually:
- Requires the breach to be historic
- Cannot be used if the beneficiary has been contacted
- Comes with strict conditions
Your solicitor will advise whether indemnity insurance is suitable.
Final Thoughts: Why Covenant Consent Should Never Be Ignored
Covenant consent is one of those property issues that is easy to overlook but costly to ignore.
When buying a property, understanding what is covenant consent when buying a property can save you:
- Stress
- Money
- Legal disputes in the future
Always read the title carefully, ask questions, and take legal advice before making changes. It is far better to deal with covenant consent early than to face problems when it is too late.
