Buying 4 acre field, but it has covenants in the contract.

[Shaunthesheep]

Firstly hi, I am new , only discovered the forum today. I have been around livestock and have mowing fencing and tree experience but want to start an organic micro farm for vegetables, chickens etc, so..

I own an existing small amount of land where I store stuff / process wood / work on my truck etc (no house) and have a barn on it . I am in the process of buying a corner of the adjoining land (4 acre section) from my neighbour, which would become an area to grow stuff, put up a greenhouse etc. There used to be a barn on this also , in fact the land was one property many years ago. I would like to replace /rebuild the barn to help with the farming of the new land. The neighbour knows this is my intention.

The contract has come through from the neighbour/seller's solicitors which has to my surprise:

Permitted Use
Use of the Property for agricultural, equestrian or amenity purposes only in conjunction with the use and occupation of (my existing property) as residential dwelling.

(Note my property is not a residential dwelling)


POSITIVE COVENANTS BY THE TRANSFEREE
7.4 to erect within 6 months from the date hereof a new fence

7.5 once erected, to keep the New Fence in good and substantial repair and condition and ensuring that any hedging does not exceed a height of 7 ft;

(Fence yes but I want to let some trees in the hedge grow taller than 7 feet in fact that is what the Woodland Trust require in their farm hedge specifications)

​

RESTRICTIVE COVENANTS BY THE TRANSFEREE
6.2 not to use the Property for any noisy offensive illegal or immoral purpose or to carry on any trade or business at the Property;
6.3 not to use the Property for any purpose other than the Permitted Use
6.4 not to erect any building or other structure whatsoever whether temporary or permanent on the Property other than any ancillary to the Permitted use

(Running a farm would of course be considered a business and I am going to be putting up field shelters , greenhouse, chicken coop etc as well as the barn)

I would like to ask if you think these are normal, are they fair, as I don't really understand why they need to be there. For a start the neighbour can't even see my place as their house is almost a mile away with no line of sight. Also, they neighbour is trying to get planning permission for multiple houses on their land, nearer to their house , which makes it seem unreasonable that I am not allowed to ever build a house on this land) Surely a house should I one day wish to build one would be subject to the usual scrutiny and planning process of the local authority?

Thankyou.

 

[delilah]

Possession is nine tenths of the law. Get it bought. Then sort the crap at your leisure.

 

[B R C]

Ask your solicitor exactly what you can and can’t do with each covenant, then if yoh are not happy go back to seller with amended covenant saying what you will accept. If they really want to sell they may agree to revisions, it’s worth asking. I’ve done it before just crossed a line through what I wouldn’t accept and the come back with a yes or no, it’s a negotiation and the price offered may change with what you can and can’t do.

 

[ladycrofter]

Get a solicitor on it. You are the buyer, YOUR terms. When I bought my first croft, seller put in the contract '"only one dog". Told them to get to f**k.

Sellers have very little say in dictating what the next owner can or can't do. IMO yours is taking the pee. They want to sell but, but still own it.

 

[Castle Farm]

Just check how much land registry are going to charge you before you go any farther.

 

[Farmer_Joe]

None of that is normal, the hedge/fence thing is fine but the rest is crap tell them your not interested with those conveyants or hammer the price according

 

[PeterPrestbury]

Firstly, check if these covenants are from the current vendor or if they were inherited by then perhaps? A simple land registry check will tell you any existing covenants.

None of the conditions are unduly onerous imo, unless it is your intention for you or your successor in title, to perhaps build a house?
But, if introduced by the current owner, then ask their reasoning for why, and if the terms are negotiable, or maybe flexible to allow for, perhaps one residential property linked to the permitted use?

Secondly, will the covenants unduly negatively impact the value if/ when you come to sell it or borrow money against it?

But ultimately, it comes down to how much do you want it, who else might be interested in it and does the seller need to sell it?

 

[Bongodog]

Possession is nine tenths of the law. Get it bought. Then sort the crap at your leisure.

Get a solicitor on it. You are the buyer, YOUR terms. When I bought my first croft, seller put in the contract '"only one dog". Told them to get to f**k.

Sellers have very little say in dictating what the next owner can or can't do. IMO yours is taking the pee. They want to sell but, but still own it.

Ignore the 1st quote entirely, and ignore the part of the 2nd about sellers having little say, covenants are a very serious matter and are binding in perpetuity, it appears that the covenants only permit you to use the land as an extension to a residential garden and to erect buildings for that use.
Get your solicitor to mark up the covenants to what is acceptable to you and send it back. If the seller doesn't agree walk away.

A friend purchased a property with a restricitve covenant on it, her solicitor said to not worry about it. That advice cost her very dear when she then wanted to extend her house and had to buy off the covenant holder

 

[betweenthelines]

Can't see anything to worry about TBH.

Neighbour is selling you a piece of farmland and wants to make sure it stays just that.

 

[alomy75]

Ignore the 1st quote entirely, and ignore the part of the 2nd about sellers having little say, covenants are a very serious matter and are binding in perpetuity, it appears that the covenants only permit you to use the land as an extension to a residential garden and to erect buildings for that use.
Get your solicitor to mark up the covenants to what is acceptable to you and send it back. If the seller doesn't agree walk away.

A friend purchased a property with a restricitve covenant on it, her solicitor said to not worry about it. That advice cost her very dear when she then wanted to extend her house and had to buy off the covenant holder

Seconded. The seller holds ALL of the cards if you sign up to their covenants.

 

[Bongodog]

Can't see anything to worry about TBH.

Neighbour is selling you a piece of farmland and wants to make sure it stays just that.

The covenant states that the land is only to be used in conjunction with the residential dwelling that the purchaser does not have, as its stands the purchaser breaks the covenant the minute the minute the sale goes through

 

[Goweresque]

The restrictions basically restrict your use of the field to farming, horse uses that solely relate to you living on your property (should you do so), or a private garden to a property on your existing land (should you ever get permission for one). And also restrict any buildings to being related to those permitted uses. So a farm shed OK, stable for your own horses OK,a shed to fix cars in, no, a house, no, a stable to rent out to someone else , no. 'Trade' here means operating a business from that location specifically, so you couldn't open a farm shop for example on it, or run a camp site, or run a livery yard, or run a firewood business. So you can basically grow crops and keep animals on it, keep your own horses on it, or use it as a private open space. And all buildings have to be specifically related to those 3 permitted uses. Anything else is verboten, unless you pay the vendor more money at some point to remove the relevant restrictive covenant(s).

 

[Shaunthesheep]

Some excellent points thankyou all. I am going to meet with the sellers this week , I'm hoping we can negotiate. They do technically have me over a barrel since they know I really want this particular bit of land , and also the 'land promoter' they are working with probably had a lot to do with putting covenants on.

 

[Kidds]

Some excellent points thankyou all. I am going to meet with the sellers this week , I'm hoping we can negotiate. They do technically have me over a barrel since they know I really want this particular bit of land , and also the 'land promoter' they are working with probably had a lot to do with putting covenants on.

I was going to say it was probably their solicitor that added the covenants, they are good at that sort of thing as are land promoters/agents.
If that is the case they are not something specified by the seller and are usually fairly negotiable. Good luck.

 

[mixedfmr]

Some excellent points thankyou all. I am going to meet with the sellers this week , I'm hoping we can negotiate. They do technically have me over a barrel since they know I really want this particular bit of land , and also the 'land promoter' they are working with probably had a lot to do with putting covenants on.

The neighbour has restrictions on his property, put on by my previous owners, to their and now my benefit
No buisness, fence ect
If you sign it is binding, negotiate now OR walk away
Your solicitor will tell you the downs on your side, spend on advise now rather than spend BIG to try geting around things latter
DO NOT expect to shape things when in your possesion, because going against covenants that you knew about, means you loose with costs, and get a bad neighbour in the bargain

 

[mixedfmr]

The sellers solicitor has has inserted a standard template. It is the sellers right to propose such restrictions on your use of the land and it is your choice whether to accept them or attempt to negotiate on them. It is competely natural for them to act in a way which is in their commercial/financial interest. Land ownership change over time and what is agreed now will be binding moving forward. New owners will hold you to it. If you attempt to negotiate on this at a later date it could cost you £££. Dependant on your budget and appetite, it may be worth offering more now in order to have more freedoms on the land moving forward.

It is likely that the solicitor proposed these terms and the seller has simply agreed to them. They may be open to negotiation. But their solicitor will be advising them on their interests along the way.

 

[Alchad]

If the land is currently agricultural I’m not sure you can simply start to grow vegetable, put up a greenhouse etc without getting change of use?

 

[Lazy Sod]

Growing vegetables is agricultural.

 

[soapsud]

Growing vegetables is agricultural from an IHT point of view providing a percentage you're trading is wholesale. If all produce is retailed directly (roadside, farm shop, farmer's market, etc) to cash paying public then that makes you a market gardener. That's horticultural but not agricultural and therefore not entitled to APR (only BPR).

If the OP wants to grow veg for his own consumption then it's not a business. If he wants to sell then he will not be abiding to the Restriction 6.2 above.

 

[betweenthelines]

From a planning perspective surely horticulture is a sub section of Agriculture, in much the same way as say, intensive pig or poultry units are?