Thanks for your prompt response.
1. I'm still awaiting my solicitor to send me a plan showing the exact extent of the retained land, as the plan he has sent attached to the 2003 Transfer which includes this covenant only shows the property we're purchasing and not the land benefitting from the covenant. I do know the retained land will be at least one property that immediately abuts the property (the property was effectively sold out of this land) but I'm not sure if subsequent transfers of the retained land will have sub-divided this further and thus increase the number of beneficiaries of the covenant. I'm not sure if our vendor's vendor still owns the retained land, but I assume the benefit of the covenant will pass to his successors in title in any event (and from the wording below it seems this is clearly the case).
2. The wording of the covenant is as follows: -
For the benefit and protection of the Retained Land and each and every part thereof and (so far as may be) so as to bind the Property into whosoever hands the same may come the Transferee hereby covenants with the Transferor and his successors in title that the Transferee and the persons deriving title under the Transferee will at all times hereafter observe and perform the following restrictions and stipulations: -
Not to use permit or suffer to be used the Property or any building thereon for any purpose other than as a single private residence.
There is another covenant but this does not relate to this issue.
My solicitor is saying it's not a concern but he hadn't heard of Caradon D C v Paton and Bussell, so I'm a little concerned (the service we've received so far has been a little remiss at best). I'm not sure if my solicitor has raised any enquiries to see whether the vendor got the express permission of the covenants beneficiary and he hasn't even suggested restrictive covenant indemnity insurance, so I'm a little concerned. We are due to exchange next week, but need to get this issue resolved before we can proceed any further.
Any help you can give me would be greatly received especially in terms of anything we can do to mitigate any litigation for breach. If you do think this is a problem, would you be able to let me know what remedies in law the covenants beneficiary has, and how we can mitigate for those. We need the income from this house to pay the mortgage so if there was the possibility of an injunction being made against us stopping us using this as a holiday let, we would be in serious trouble.
If you need anything else, please don't hesitate to ask.
Thank you so much.