By Guest on 06th Jan 2015

    I would like to know if the item listed on my Official copy of Title Register can be excluded with an indemnity policy to enable me to extend my property

  • 1 Answers

    By Guest on 06/01/2015

    I assume there is a covenant which says you are not to alter / extend the property except with the consent of the person with the benefit of the covenant (or it may be an absolute prohibition on alterations / extensions). If so then you can get indemnity insurance which will compensate you for financial losses should the person with the benefit of the covenant seek to enforce it but this insurance does not take away the possibility that enforcement action will be taken. As the insurance is for an intended breach of covenant rather than an existing one the standard "off the shelf" policy will not be sufficient and a bespoke policy will be needed. The insurers cannot deal with you directly and you will need to instruct a solicitor or licensed conveyancer to arrange the cover.

    Alternatively you could if you can track him / her down approach the person with the benefit and see if they are prepared to enter into a deed to withdraw the covenant or you can apply to the Lands Tribunal to have the covenant cancelled. Beware however that if either of these avenues fail (and they might - it is difficult to get the LT to cancel a covenant) then you may not be able to obtain indemnity insurance as the risk of enforcement action is increased.

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