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1. The first thing you need to realise is, as you are probably aware from your question, this restrictive covenant does prohibit the building of a second house. There is no lawful way around the covenant unless Hillingdon Council who obviously hold the benefit of the covenant give you a Deed of Release from it.
2. Be aware that splitting the Folio does not aid you here, as the burden of the restrictive covenant then affects each divided piece. There is no magic to dividing the Folio, as the covenant simply continues to affect both new Folios.
3. The advice you got to speak to Hillingdon Council is the correct advice. This is because you need to get a Deed of Release to allow you to build. Otherwise, the covenant will simply be enforced and you will be prevented from building.
4. You also need to realise in not objecting to your planning permission application the Council were fully aware of the limitations upon you building. Similarly, if it was Hillingdon Council who gave you the planning permission, they are waiting for you to seek a Deed of Release.
5. Be aware that a Restrictive covenant is like a halter tying two legs of a horse together. Until there is a Release, there is no go forward momentum.
6. The amount will be small. It is never above GBP 10,000 WHEN there is sufficient room to build. You should realise that the Council, in principle, aren't against you building because they didn't object to your planning permission. If they believed building should not occur, they would have objected to the planning permission.
7. You should seek to speak to someone in the legal department of the Council or to the Council's solicitors. They will understand the situation and give you a Deed of Release, provided you pay some money to the council.
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