How Much Does It Cost to Remove a Restrictive Covenant?

You usually do not need to "remove" it

First, an important point: when selling, you rarely need to fully remove a restrictive covenant. The issue is usually a breach (for example, an extension built against a covenant), and the practical fix is to insure or address the breach, not discharge the covenant entirely (see restrictive covenants). So the cheapest, most common solution costs far less than "removing" the covenant.

The cost options

Indemnity insurance — the cheap route

For a historic breach with low enforcement risk, indemnity insurance is by far the cheapest and most common solution — a one-off policy protecting the buyer and lender, often costing just tens to a few hundred pounds depending on the property value. It does not remove the covenant but covers the risk, allowing a mortgage sale to proceed. Do not approach the party with the benefit of the covenant once you intend to insure, as that can void the policy.

The expensive route — the Upper Tribunal

If you genuinely need to modify or discharge an obsolete or unreasonable covenant, you can apply to the Upper Tribunal (Lands Chamber). This is the expensive and slow route — legal and tribunal costs can run from several thousand to tens of thousands of pounds, and success is not guaranteed. It is generally only worth it where the covenant is genuinely blocking development or significantly affecting value, not for a simple sale where insurance will do.

Selling with a covenant

For most sales, a covenant or a historic breach is dealt with cheaply by indemnity insurance and disclosure — there is no need for the costly removal route. If you would rather not deal with it, or want speed, a cash buyer will purchase with the covenant disclosed, accept or insure the risk, and complete in 7-28 days. See unauthorised extensions for the common breach case.