A covenant that is placed on a property in a previous transaction and binds the land and anyone who takes that land, can have great financial implications, though often disregarded by clients as ‘just on paper’ until the real implications are drawn to their attention.

We acted for a GP Practice who wanted to purchase the building they were renting. There was a covenant enforceable by the Salvation Army that the upstairs of the premises could only be used as a residence for a member of the practice – not as offices. The agreed value to remove the covenant was in the order of 25% of the original valuation.