Sell a Property with Restrictive Covenants

No chain, no delays, and completion in as little as 28 days with auction.

Restrictive covenants don’t always prevent a property from being sold. Learn how they can affect a property sale, the challenges they can present and why auction can sometimes provide a faster, more certain route to completion.

Can You Sell a Property with Restrictive Covenants?

Yes. Many properties with restrictive covenants are bought and sold successfully throughout the UK every year.

Restrictive covenants are common and, in many cases, have little or no impact on a property’s saleability. However, some covenants can affect how a property may be used, altered or developed, which may influence buyer confidence or mortgage lending.

Whether the covenant relates to building work, land use or another restriction, selling the property is often still a realistic option.

If you’re considering selling, you can also learn more in our guide to Sell a Property with Legal Issues, which explains the different types of legal complications that can affect a property sale and the options available.

Understanding Restrictive Covenants

A restrictive covenant is a legal obligation recorded against a property that limits how the property or land can be used.

Many restrictive covenants were created decades ago and remain attached to the property even after ownership changes. While some are no longer relevant, others may continue to affect alterations, extensions, business use or future development.

Restrictive covenants may cover a wide range of issues, including:

  • Extensions and Alterations
    Restrictions on extending or significantly altering the property without permission.
  • Business Use
    Restrictions on using the property for business or commercial purposes.
  • Additional Buildings
    Restrictions on constructing garages, outbuildings or additional dwellings.
  • Appearance of the Property
    Requirements relating to fencing, external appearance or maintenance.
  • Land Use
    Restrictions controlling how gardens, land or neighbouring plots may be used.
  • Restrictive covenants do not automatically prevent a property from being sold, but buyers and solicitors may wish to understand how they affect the property before proceeding.

What Can Make a Property with Restrictive Covenants Difficult to Sell?

Buyer Uncertainty

Buyers may be concerned about how the covenant could affect their future plans.

Mortgage Restrictions

Some lenders may require additional legal clarification depending on the nature of the covenant.

Conveyancing Delays

Solicitors may need to investigate the covenant and its enforceability.

Development Limitations

Restrictions affecting extensions or alterations may reduce buyer interest.

Additional Legal Advice

Buyers may seek specialist legal advice before committing to purchase.

Reduced Buyer Pool

Some buyers may decide the restrictions do not suit their intended use of the property.

What Can Affect the Sale?

Nature of the Covenant
Some restrictive covenants are rarely enforced, while others remain legally significant.

Age of the Covenant
Older covenants may no longer be actively enforced, although they can still affect a property sale.

Intended Use by the Buyer
The impact often depends on what the buyer plans to do with the property.

Solicitor Instructed Early
Early legal advice can help clarify the covenant before marketing begins.

Buyer’s Understanding of the Issue
Buyers who understand the covenant and its practical impact are often more confident about proceeding.

Legal Pack
Providing clear legal documentation before marketing can reduce uncertainty and support informed decision-making.

Who Buys Properties with Restrictive Covenants?

Typical buyers include:

  • Owner-Occupiers
    Many buyers proceed without issue once they understand how the covenant affects the property.
  • Property Investors
    Experienced investors are often familiar with restrictive covenants and assess them as part of the overall investment.
  • Cash Buyers
    Cash buyers may be more flexible where additional legal enquiries are required.
  • Property Developers
    Developers carefully assess restrictive covenants to understand how they may affect future development potential.

Common Buyer Concerns

Future extensions
Property alterations
Mortgage availability
Development potential
Legal costs
Enforceability of the covenant

These concerns do not necessarily prevent a sale, but they may influence buyer confidence and the time taken to complete the transaction.

Factors That Can Improve Buyer Confidence

Clear explanation of the covenant
Copies of the title documents
Early legal advice
Comprehensive legal pack
Honest disclosure of the restriction
Information about previous alterations where relevant

Providing buyers with clear information can reduce uncertainty and help them make informed decisions before committing to purchase.

Related Legal Guides

Property with Legal Issues

Understand how legal issues can affect a property sale, explore the different options available and discover how auction can help connect sellers with experienced buyers familiar with legal complexities.
Read more: Sell a Property with Legal Issues

Missing Title Deeds

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Read more: Selling a Property with Missing Title Deeds

Boundary Disputes

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Read more: Selling a Property with a Boundary Dispute

Flying Freeholds

Find out what a flying freehold is, why it can concern some mortgage lenders and how these properties are successfully bought and sold.
Read more: Selling a Property with a Flying Freehold

Unregistered Property

Discover what it means if your property has never been registered with HM Land Registry and how unregistered properties can still be sold successfully.
Read more: Selling an Unregistered Property

Absent Freeholder

Learn how an absent freeholder can affect the sale of a leasehold property and the different options available to sellers and buyers.
Read more: Selling a Property with an Absent Freeholder

Possessory Title

Learn what possessory title means, how it differs from absolute title and how it can affect mortgage lending, buyer confidence and the sale of your property.
Read more: Selling a Property with Possessory Title

Missing Building Regulations or Planning Permission

Find out how missing planning permission, building regulations approval or completion certificates can affect a property sale and the options available to sellers.
Read more: Selling a Property with Missing Building Regulations or Planning Permission

Selling a Property with Restrictive Covenants at Auction

Auction can help connect your property with experienced investors, developers, cash buyers and other purchasers who understand legal issues and are prepared to carry out their own due diligence before bidding.

Why auction can work well:

  • Experienced buyers
  • Greater transparency through the legal pack
  • Access to cash buyers
  • Competitive bidding
  • Completion typically within around 28 days

Where restrictive covenants have delayed a traditional sale or reduced buyer confidence, auction can provide a straightforward route to selling.

Read more: Sell a Property with Legal Issues

Property with legal issues and legal documents promoting a fast sale through auction.

Auction can help connect properties with legal issues to experienced buyers looking for legal property opportunities.

Get Your Free Auction Valuation

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How the Auction Process Works

Six steps to selling at auction

1

Request Valuation

Tell us about your property and its condition.

2

Set a Reserve Price

A suitable guide price is agreed along with a reserve price.

3

Instruct a Solicitor

A solicitor is appointed to handle the legal side of the sale.

4

Prepare the Legal Pack

Your solicitor prepares the necessary documentation.

5

Auction Day

Once the auction ends successfully, contracts are exchanged immediately.

6

Completion

Completion typically takes place within around 28 days after auction sale.

Why Use Us?

Selling a property with restrictive covenants can seem daunting, particularly where buyers have raised concerns or additional legal enquiries have delayed the sale.

We help homeowners understand the options available when selling properties with legal issues and explain how auction can provide access to experienced buyers familiar with more complex transactions.

Working alongside established UK auction houses and experienced auction professionals, we help connect sellers with investors, developers and cash buyers who understand legal complexities and are often prepared to proceed where traditional buyers may hesitate.

Whether the covenant affects extensions, development, business use or another aspect of the property, we’re here to provide straightforward guidance and practical support.

There is no obligation and no pressure to proceed.

If you’d like to understand what your property could sell for, we can provide a free, no-obligation auction valuation and explain the options available to you.

Frequently Asked Questions About Selling a Property with Restrictive Covenants

Yes. Restrictive covenants are common and do not automatically prevent a property from being sold.

A restrictive covenant is a legal restriction recorded against a property’s title that limits how the property or land may be used.

Not necessarily. Much depends on the nature of the covenant, how relevant it remains today and whether it affects the buyer’s intended use of the property.

Your solicitor will provide information about the property’s title during conveyancing. Buyers and their solicitors will usually review any restrictive covenants before completing the purchase.

Most restrictive covenants do not prevent mortgage lending, although some situations may require additional legal clarification.

Auction can be an effective option where legal complexities have delayed a traditional sale or reduced buyer confidence. Buyers are able to review the legal pack before bidding, helping them make informed decisions.

In some circumstances, restrictive covenants can be modified or discharged, although this is not always straightforward. A solicitor can advise on the options available for your particular property.

Once the legal pack has been prepared and the property has been entered into auction, contracts are usually exchanged immediately after a successful sale, with completion typically taking place within around 28 days.

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