If you’ve ever bought or sold property, you might have come across something called restrictive covenants—a legal rule that limits what you can do with your land. But who actually benefits from these restrictions? A recent High Court case sheds light on this surprisingly complex question.
The Case: Hughes Family Property Co Ltd v Cotton & Ors
The Hughes Family Property Company owned a plot of land in Dartmouth and wanted to build on it. But they hit a snag: a restrictive covenant from 1977 said no buildings could be constructed on part of the land.
The company argued that no one had the right to enforce the covenant anymore, so they asked the court to declare it invalid. Initially, they tried to do this without naming a defendant, claiming that no one benefited from the restriction. But the judge wasn’t convinced and wanted to hear from neighbouring landowners—just in case.
What Did the Court Find?
Turns out, the original seller of the land (a company called Chantreys) had agreed to buy several plots in the same estate around the same time. Even though Chantreys didn’t legally own the other plots when the covenant was imposed, they had equitable title—meaning they had a binding contract to buy them.
That was enough for the court. The judge said that Chantreys’ interest in the other plots made it clear that the covenant was meant to benefit those neighbouring properties. So, the restriction still stood.
Why Does This Matter?
This case confirms that:
- Equitable ownership (not just full legal title) can be enough to benefit from a restrictive covenant.
- Courts will look beyond the paperwork to understand the true intention behind property agreements.
- If a covenant is meant to protect nearby land—even if it’s not yet legally owned—it can still be valid.
The Takeaway
Restrictive covenants can have long-lasting effects on what you can do with your land. Whether you’re a developer or a homeowner, it’s crucial to understand who might benefit from these restrictions—and how they’re enforced.
If you’re a developer, take legal advice early to avoid creating a situation where someone else can block your plans. If you’re a homeowner, remember that these covenants can protect your property and may be enforceable even decades later.
At Nelsons, we’re experts in this area and can help you navigate restrictive covenant disputes whether you’re looking to challenge one or enforce your rights. Get in touch to find out how we can support you.
How can we help?
Simon Waterfield is a Partner in our expert Dispute Resolution team, specialising in property disputes, rights of way claims, landlord and tenant disputes and commercial disputes. With over 30 years of experience, Simon Waterfield and his team are experts in resolving disputes between neighbours. Simon provides pragmatic and clear advice to achieve a resolution as cheaply and quickly as possible
For more information on the subjects discussed in this article, get in touch with Simon or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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