Legal
Restrictive Covenants and Selling Your House
A restrictive covenant is a legally binding rule in the title that limits what you can do with your property — common examples ban certain alterations, business use, or building without consent. Covenants usually do not stop a sale, but a breach (for example, an extension built against a covenant) can worry buyers and lenders. Most breaches are resolved with indemnity insurance or by obtaining consent, and a cash buyer will often buy with the issue disclosed.
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- Limitswhat you can do
- Breachis the real concern
- Indemnitythe usual quick fix
- 7–28days — cash, as-is
What a restrictive covenant is
A restrictive covenant is a promise, written into the property’s title deeds, that restricts what the owner can do with the land — and it usually "runs with the land", binding future owners too. Typical covenants prohibit building or extending without the consent of a named party, ban running a business from the home, prevent keeping certain animals, or require the property to be used only as a single dwelling. They are common, especially on estates and former-developer land, and most owners live with them without issue.
How covenants affect a sale
The existence of a covenant rarely stops a sale — buyers and lenders are used to them. The problem arises from a breach: if a previous owner (or you) did something the covenant forbids, such as building an extension that needed a consent never obtained, the buyer’s solicitor will flag it. A lender may be cautious because, in theory, the party with the benefit of the covenant could seek enforcement. In practice, enforcement of old covenants is often difficult, but buyers still want the risk dealt with before they proceed.
Dealing with a breach
| Option | When suitable |
|---|---|
| Indemnity insurance | Historic breach, low enforcement risk — the common fix |
| Obtain retrospective consent | The benefiting party is known and willing |
| Apply to vary/discharge the covenant | Obsolete or unreasonable covenant (Upper Tribunal) |
| Disclose and sell as-is | To a cash buyer who accepts the risk |
Indemnity insurance is the usual, quick and inexpensive solution for a historic breach — a one-off policy protecting the buyer and lender against enforcement losses. Importantly, do not approach the party with the benefit of the covenant once you plan to insure, as that can invalidate the policy.
Disclosure and your duties
You must disclose a known breach of covenant on the property information form, and provide the covenant details and any consents or insurance you hold. Concealing a breach risks a claim. Your conveyancer will identify covenants from the title and advise on the best route — usually indemnity insurance for a historic breach, or retrospective consent where practical. Being upfront and arranging insurance early keeps the sale moving rather than letting the issue surface late in the buyer’s checks.
Selling a house with a covenant issue fast
If a covenant breach is deterring mortgage buyers or you need speed, a cash buyer will often purchase with the issue disclosed, accept or insure the risk, and complete in 7-28 days without a lender to satisfy. This suits properties with an unauthorised extension or conversion (see unauthorised extensions). You disclose what you know, accept a price reflecting the issue, and gain a fast, certain sale.
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Written & reviewed by Lisa Hayes, Founder
Lisa Hayes is the founder of Ready Steady Sell and an independent UK home-selling expert with over a decade helping homeowners weigh cash house buyers, property investors and the wider fast house-sale industry — without pressure or hidden fees. Every guide is reviewed for accuracy under our editorial standards.
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Frequently asked questions
Straight answers, no sales talk
What is a restrictive covenant on a property?
A legally binding rule in the title deeds that limits what you can do with the property — such as banning extensions without consent or business use — and it binds future owners too.
Do restrictive covenants stop you selling?
Rarely. The covenant itself is usually not a problem; a breach of one — like an extension built without required consent — is the issue buyers and lenders want resolved.
How do I deal with a breached covenant when selling?
Indemnity insurance is the common, quick fix for a historic breach. You can also seek retrospective consent or apply to vary the covenant. Your conveyancer will advise.
What is indemnity insurance for a covenant?
A one-off policy protecting the buyer and their lender against losses if the covenant is enforced. Do not contact the benefiting party once you plan to insure, as it can void the policy.
Can a restrictive covenant be removed?
Sometimes — you can apply to the Upper Tribunal (Lands Chamber) to vary or discharge an obsolete or unreasonable covenant, though this takes time and is not guaranteed.
Can I sell a house with a covenant breach quickly?
Yes. With indemnity insurance, or to a cash buyer who accepts the risk with it disclosed, a sale can complete in 7-28 days.