Developers often think their work is complete after securing planning permission. Yet, title restrictions can introduce unexpected challenges, affecting construction. These restrictions can determine what can be built or even halt the project entirely, necessitating careful consideration.
Planning Permission vs. Title Restrictions
- Planning Permission Isn’t Always Enough: Even with planning permission, title restrictions can still obstruct your development plans.
- Why Title Investigations Matter: Before committing to any project, conduct thorough title investigations. Use Land Registry searches or other relevant methods to uncover potential restrictions.
Key Title Restrictions to Watch Out For
Restrictive Covenants
- What Are Restrictive Covenants?: These are legal obligations attached to the land title, imposing specific restrictions for the benefit of neighbouring landowners.
- They Are Binding: Restrictive covenants are binding on current and future owners of the land.
- How to Find Them: Discover details of restrictive covenants through a Land Registry title search.
- Age of Covenants: Some covenants date back decades, with purposes that may seem outdated. Others could be recent, imposed by the current vendor.
- Common Examples: A vendor might restrict window installations overlooking their property or limit a building to one storey.
- Dealing with Live Covenants: Active covenants require negotiation, often involving compensation, or an application to the Lands Tribunal for removal.
- Handling Dead Covenants: If no traceable beneficiary exists, consider purchasing an Indemnity Policy. This protects against future claims, with the premium based on risk assessment.
Easements
- Understanding Easements: Easements attach to the land title but grant rights over one property for the benefit of another.
- Typical Scenario: An easement might allow a neighbour to pass through your land.
- Removing Easements: Active easements usually require compensation for removal. Redundant easements can be extinguished by applying to the Lands Tribunal.
Wayleaves
- What Are Wayleaves?: Wayleaves grant rights for services, like electricity lines, to pass over or under your land.
- Termination Conditions: Many wayleaves include a termination clause after a set period, often contingent on finding an alternative route. Redundant wayleaves can be extinguished through the Lands Tribunal.
In Summary
Exploring title restrictions alongside planning laws can be complex. Consult a specialist property lawyer early in your development process to avoid costly delays and ensure a smooth progression.
At 360 Law Services, we provide expert legal guidance to help developers navigate the complexities of title restrictions in property development. Our team conducts thorough title investigations to identify potential issues, such as restrictive covenants, easements, and wayleaves, that could impact your project. We offer strategic advice on how to address these challenges, whether it involves negotiating with beneficiaries, applying to the Lands Tribunal, or arranging indemnity policies. With our specialised knowledge and proactive approach, we ensure that your development proceeds smoothly, minimising risks and avoiding costly delays.
5 Key Takeway Points
Here are five key takeaway points from the blog:
- Thorough Title Investigations Are Crucial: Conducting detailed title investigations before committing to a development project helps uncover any restrictive covenants, easements, or wayleaves that could hinder your plans.
- Planning Permission Doesn’t Override Title Restrictions: Even with planning permission, title restrictions such as restrictive covenants can prevent or limit construction, making it essential to address these issues early.
- Dealing with Restrictive Covenants: Active restrictive covenants require negotiation or legal action for removal, while “dead” covenants may be managed through an indemnity policy.
- Understanding Easements and Wayleaves: Easements grant rights over land, and wayleaves allow services to pass over or under land. Both can impact development and may require compensation or legal procedures for removal.
- Consulting Specialist Legal Advice Is Essential: Engaging with specialist property lawyers, like those at 360 Law Services, early in the development process ensures that title restrictions are properly managed, avoiding delays and additional costs
