Although is it not true that covenants are not strictly legal or proper ?
In R v Braintree DC (ex parte Halls) (2000) the Court of Appeal held that a covenant requiring a property to be used as a single dwelling house is unlawful where the purpose of the covenant was to reserve to the local authority a share of future profits on granting a release since such purpose did not promote the policy and objectives of the right to buy legislation. Local authorities should, if they wish to impose such a covenant which they wish to enforce by injunction, rather than by a consent or release in return for payment reflecting an increase in value, ensure that the decision making process in deciding to impose such a covenant clearly shows that the purpose is not for financial gain but for some other proper purpose.
My concern is that is the covenant legal for them to have a proportion of any future profit that could be made from the house due to extensions or builds. Also is it fair that the council charge £200 and the housing association charge £10k - the housing association took over all aspects of the council housing stock and therefore the rights and charges should have remained the same or within a reasonable bracket. £9,800 extra seems very excesive.
I will dig out a copy of it
is it possible to attach or send pdf's
ok found the wording. Basically in the deeds of the house it states:
THE SECOND SCHEDULE before refered to:
4. Not to construct or permit to be constructed upon the premises any dwellinghouse other than the dwellinghouse existing upon the premises at the the date hereof or any replacement thereof.
We got planning permission for a house on the land next to ours. So when we sold the property we could sell our house with planning permission for another next door. However in order to sell it with the planning permission we had to get the above removed from the deeds as it was a covenant.
The council told us if they still had the housing stock or rights they would charge us nothing at at worst maybe 200GBP legal fees to remove this clause. The housing association have made us pay 10,000GBP to remove it so that the new buyer has the right to build on the land.