Can I get a mortgage on a property with restrictive covenants?

Yes, in most cases. Standard covenants rarely prevent lending. More unusual or breached covenants may require indemnity insurance, which is typically straightforward to arrange.

What if a covenant has been breached?

If a previous owner breached a covenant (e.g. built an extension without consent), your solicitor can usually arrange indemnity insurance to satisfy the lender.

Can restrictive covenants be removed?

Yes, through a Lands Tribunal application or by negotiating with the beneficiary of the covenant. However, this can be expensive and time-consuming, so indemnity insurance is often the more practical solution.

Do covenants affect property value?

Standard covenants rarely affect value. Unusual restrictions (e.g. preventing all development) could limit future use and therefore impact value, but this is uncommon.

Covenant & Restriction Mortgages

Restrictive covenants on a property can concern lenders — but most are manageable. We know which lenders are comfortable with common covenant types.

Mortgages on Properties with Covenants

A restrictive covenant is a legal obligation written into a property's title deeds that limits what the owner can do with the property. Common examples include restrictions on building extensions, running a business from home, or keeping livestock. While covenants can make some lenders cautious, most are standard and don't prevent mortgage lending — provided they're properly disclosed and assessed.

Expert knowledge of common covenant types and lender attitudes
Title restriction assessment and advice
Indemnity insurance guidance where needed
Historical covenants and their enforceability explained
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Common Restrictive Covenants

Typical covenants include restrictions on alterations or extensions, prohibitions on commercial use, requirements to maintain boundaries or fences, restrictions on keeping caravans or certain animals, and limitations on the type of fencing or boundary treatment. Most of these are standard and don't affect mortgage lending.

When Covenants Cause Problems

Covenants become problematic when they've been breached (e.g. an extension built without covenant consent) or when they materially affect the property's use or value. In these cases, lenders may require indemnity insurance to protect against enforcement action, or they may need legal confirmation that the covenant is unenforceable.

Indemnity Insurance

Where a covenant has been breached or is ambiguous, solicitors often arrange indemnity insurance. This protects the buyer and lender against financial loss if the covenant is enforced. The cost is typically modest (£50-£300 as a one-off payment) and is usually acceptable to lenders.

Historical Covenants

Many covenants date back decades or even centuries and may be practically unenforceable. However, lenders still take them seriously. Your solicitor will assess whether the covenant is still relevant, who benefits from it, and whether there's any realistic risk of enforcement.