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MarianC
MarianC, Solicitor
Category: Law
Satisfied Customers: 580
Experience:  Expert
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I purchased a corner block of properties and one of them was

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I purchased a corner block of properties and one of them was an empty shop in 1984. I then converted the shop after gaining planning permission into a small coffee/teashop selling sandwiches, cakes and snacks. My wife and I ran the business for 12 months and then created a lease with a covenant that the shop could only be used as a coffee/tea shop and sold the business.After about 2 years the couple that were running the business sold the lease on to another couple who run the business before selling it on again to another couple who I knew very well.This couple asked if they could purchase a large store at the rear of the premises in order that they could create a storage and larger prep area. After discussions I sold them the freehold of the coffee shop and store plus 2 small flats above at an agreed price as the leases were very long and only produced an income of about £100 ground rent per year.A couple of years later they sold on the coffee shop and freehold that they had
purchased to someone else who has run the business for many years and has now sold the freehold coffee shop to a purchaser who wants to turn it into a Indian Takeaway.My question is does the covenant that I put on the premises that it can only be used as a tea/coffee shop even though I do not own the freehold anymore or can a current owner disregard the covenant that I put on it originally? I always thought that when a freehold was sold to another party that they also inherited any covenants put on the freehold for evermore, is that correct

Good afternoon

Unless the covenant has been released or varied then they cannot just 'disregard' the covenant.

Restrictive covenants run with the land, regardless of how many times it has been sold on so they will still be bound by this.

If a covenant has been breached for 18years or longer, it can be thought of as 'extinguished' but there are no other ways in which it can be just disregarded.

I hope this helps.

Customer: replied 5 days ago.
Many thanks for your quick reply and it is most reassuring.What ever full marks are, I award them!

No problem at all. Glad to be of assistance.

I'd be grateful if you could please rate my response so I am credited with assisting you - the stars are at the top of the page :)

Have a lovely day!

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