Challenging Restrictive Covenants
Frequently, indemnity insurance is available, but when it isn’t, or when the cost of it is too great, thought should be given to whether or not it is worth considering making an application to the Land’s Chamber (Upper Tribunal) for the restrictive covenant to be discharged or modified. Traditionally, developers have run shy of making such applications, not least because of uncertainty on costs and time. However, it might be worth reconsidering such applications, not least because the UTLC is currently dealing with applications relatively speedily and, where developers are able to show that the covenants give no practical benefit of any substantial value or advantage, then a discharge or modification can be obtained.
As with everything, it is important to read the small print and each matter will turn on its own fact, but what had previously been an often disregarded route, is increasingly seeming a possible course of action.
Contact James Clewlow if you want to talk more about such applications.
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