Alternatively, you may simply be considering changing the use of your land and/or buildings. Either way, you should consider at an early stage whether there are restrictive covenants on your title which could be problematic. This will avoid later delay or wasted costs
Even if there are restrictive covenants then there may be various options available to you to enable you to proceed:
In Millgate Developments Limited v Smith [2016] the land in question was subject to a restrictive covenant not to use as anything other than a car park. Residential housing was built and the developer successfully applied for a modification. Commentators have been quick to note however that one of the key aspects in the Millgate case was that the land was required for social housing.
In the Millgate case, the benefitting party argued they should be paid an amount commensurate with the profit but the tribunal advised that the proper measure of compensation was the objector’s loss, not the applicant’s gain.
In another case, the applicant applied for the discharge of a restrictive covenant restricting the use to agricultural and equestrian use so that housing could be built. In defence, the benefitting party sought to prevent the application or alternatively argued that if the application was successful they should be paid £250,000 compensation. They were ultimately awarded £3,000.
5. Proceed anyway regardless of the covenants. We would not recommend this as there is a strong possibility the benefitting party will seek an injunction!
Each case is different and the appropriate course of action will vary. For further information or advice, please contact Kirsty Barsby or a member of the Agriculture & Landed Estates Team.
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