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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7602
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I am a head lease holder of a shop which I wish to rent out

Resolved Question:

I am a head lease holder of a shop which I wish to rent out to another shop holder on a 10 year lease.they want to trade as an off licence and have been granted a liquor licence from the local authority.I have just been informed by my solicitor that there is a restrictive covenant stating that no beer, wines or spirits or be occupied in whole or part for the purposes of a club in which intoxicating liquors are supplied to the members or their guests
As this covenant was implemented in 1936 by a company that now does not exist could this covenant be removed
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

If the covenant was imposed by a company only for the benefit of the company in itself and the company does not exist then they will not be able to enforce the covenant and so it should not be an issue for the proposed tenant.

However, you need to check with your solicitor if the covenant was enforced for the benefit of any other person.

If the covenant states that it was enforced for the benefit of the company’s successor’s in title to the land then the people who own the land that the company once owned then it could be an issue if they seek to enforce it.

If the tenant is not instructing a solicitor then they will probably not know about it and will not raise it as an issue.

If the tenant is instructing a solicitor or raise it themselves than you will have to get your solicitor to check if the benefit of the covenant is enforceable by anyone else. If it isn’t then your solicitor will confirm as much to the tenant and they will proceed. If it is then you will either have to approach the person with the benefit for a release from it OR offer a restrictive covenant indemnity policy to the tenant (for which there is a one-off premium payable of between 100-200 depending on the value of the property the tenant is to be granted a lease on.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom
Thomas and other Property Law Specialists are ready to help you
Expert:  Thomas replied 3 years ago.

Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on the information I have provided.


Kind regards,


Tom

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