Shah Al Hoque
Legal
Freehold Covenants; A Simple Guide
Recent changes in leasehold legislation have slightly shifted buyers’ attention towards freehold properties.
Buying or owning a home is exciting, but there are some hidden rules that you need to know about – freehold covenants. They might sound complicated, but they are simply promises attached to the property that affect what you can (and cannot) do.
A freehold title can be subject to old or recent covenants, most often imposed by the initial developer or estate owner often to keep the estate in good order or to protect their full enjoyment of any retained neighbouring property.
What is a Covenant?
A covenant is a legal promise written against your property’s title. For example, it might say you:
- Cannot run a business from your home
- Must keep the exterior in good repair
- Cannot change the colour of the house
These rules don’t just apply to the first owner they usually stay with the property and can be enforced against future owners.
There are two types:
- positive covenants, asking you to do something, like maintain a shared path
- restrictive covenants, limiting what you can do like build an extension or causing a nuisance
Restrictive covenants may affect the property value, renovation plans or even selling in the future.
What should you do
If buying a property, you should advise your legal adviser of your plans for the property.
Your legal advisor can then tailor their advice to you regarding the covenants accordingly.
If you already own a property, you should review your title deeds to check for any covenants and contact us if you have any questions or concerns.
Paras Mercioniu, a conveyancer in our Residential Property Team said:
“Freehold ownership usually seems like total freedom, but covenants can still set boundaries. Knowing about them early helps you avoid problems and enjoy your home with confidence. Here at Mullis & Peake LLP we will review title documentation early in the transaction and advise accordingly.”