Restrictive covenant on property

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AndrewH
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Post by AndrewH »

Ab647 wrote:Does anyone know if it would still count as a business for the purposes of the restrictive covenant if the number of days available for let was fewer than the business rate threshold ie 140 days?
The answer to that is simple. There have been restrictive covenants in deeds for centuries before Local Authorities ever existed. If there is a restrictive covenant attaching to the land and anything built on it, it will not be affected by what the LA charges the property owner in the way of rates and taxes and how the LA works them out. If the restriction is there the actions of the Local Authority cannot change it. There is no connection.
Ab647
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Post by Ab647 »

Zebedee..thanks for an objective view. I agree. I guess having found an ideal property I was hoping to find a way of making it work as a holiday let. I accept that it can't be done with this property. Thanks for taking the time to post a well thought out message.

Back to the drawing board.
zebedee
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Post by zebedee »

Very best of wishes and good luck in your search.
The bungalow has set the bar for what you want, you will now only accept something as good as, or even better.

Looking forward to hearing your progress with your business on this forum.
Essar
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Post by Essar »

Don't forget that a restrictive covenant can also be applied to a freehold contract by the developer or a previous owner of the land it is going to be built upon, not just parish, local and national governments. Local churches can also have them applied in the past and some of these may still exist on the land.

I once bought a small bungalow that was built on land that was previously owned by a large local private estate. I was miffed to discover that I could not erect a building to house a steam engine greater than 1 horse power, a brew house or a blacksmiths. :o
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JanB
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Post by JanB »

I owned a former granary which was part of a range of redeveloped buildings. When I bought it, the deeds did specifically mention the fact no business was to be run from the property. Holiday let was not mentioned, only the word business.

However, I took advice from a litigation lawyer, who said that a holiday let was not considered a business as such as the property would be used by residents in the same way as a long term tenant would use it, in the usual way of living in a property.

So, I went ahead and bought the property and began letting. Unfortunately, the neighbouring owners were not happy at all.

Ultimately, I sold as the stress was just too much with said neighbours making life very difficult.

We then bought another property and approached all neighbours prior to check they would not have a problem with us letting out on a holiday basis. Thinking about it, some people are less keen on having strangers arriving each Saturday and also the "money making" angle can ire certain folk too.

Much better to find a property with no restrictive convenant but always worth speaking to the prospective neighbours to ensure they have no issue with your plans.

Good luck!
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kg1
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Post by kg1 »

Some really thoughtful and useful posts here. My opinion? For goodness sake, what are you thinking about? Bungalows will be bought by older people who will be at home all day. In such a small group they will all chat and you will be in trouble very very soon. Walk away. Sorry I know this is not what you want to hear.
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Robin S
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Post by Robin S »

We have restrictive covenants on both properties but actually enforcing their use can be for holiday home purposes only.

Very clearly stated in all agent pre-sale content and requires conveyancers with knowledge of the contracts.

Not heard of covenants restricting use from a holiday let but not surprised they exist. Big red flag pre offer / conveyance.
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