Property restrictions are essentially legal conditions imposed on a property. Most restrictions are ‘restrictive’, which means they prevent something from being done.
A classic example is where a property is a listed building or located within a conservation area. There may be a restrictive covenant which prevents the current owner from changing it in a way that doesn’t fit with the surrounding buildings or the existing style
Who can add a restriction?
The original or a previous property owner is able to add a restriction. Indeed, restrictive covenants are often written into the title deeds of the property.
When two or more people purchase a home as tenants in common, a restriction is added to the title deeds by the Land Registry. This means that each party owns an equal share in the property. The restriction in this case ensures that, if the property is sold, the money is distributed equally between all owners. It also stops a co-owner from selling a property if another co-owner has died without the express permission of those inheriting that share.
In some cases, creditors can put a restriction on a property. If you have an Individual Voluntary Arrangement (IVA), they will often add a restriction that prevents you from selling without their permission. The creditors will be notified of any attempt to sell the property. And, if they do give permission, they will expect the debt to be repaid from the proceeds of the sale. An IVA usually runs for five or six years.
Property owners can add a restriction to protect themselves against property fraud. The Form LL restriction is often referred to as the ‘anti-fraud’ restriction. Essentially, it means that any mortgage or sale has to be certified by a conveyancer, who must verify the owner’s ID in person to make sure it is not fraudulent. Specialists such as Parachute Law can offer advice on all property restrictions and related matters.
Who can enforce a property restriction?
Local authorities, councils, neighbours, landlords, builders, freeholders, and management companies may take action on any covenant infringements.
