{"id":176790,"date":"2022-10-11T20:09:55","date_gmt":"2022-10-11T19:09:55","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=176790"},"modified":"2025-07-02T00:38:46","modified_gmt":"2025-07-01T23:38:46","slug":"restrictive-land-covenants","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/restrictive-land-covenants\/","title":{"rendered":"How Do Restrictive Land Covenants Work in England?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">As a business owner, you are unlikely to often come across land law when running your business.\u00a0However, there may be occasions when you need to understand restrictive land covenants in the context of your business premises, which can confuse newcomers. You need to understand the rules concerning the business premises you use so that you can abide by them and get on with running your business.<\/span> <span style=\"font-weight: 400\">Therefore, this article will explain the <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/restrictive-covenants\/\"><span style=\"font-weight: 400\">general effect of restrictive covenants<\/span><\/a><span style=\"font-weight: 400\"> to give you a basic understanding. It will then consider the kinds of covenants you are most likely to encounter in a commercial context.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Restrictive Covenants<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">A covenant is an obligation to do something or to refrain from doing something with or to the land you occupy. They are legally binding regardless of whether you are a residential or commercial occupier. A covenant is attached to the land, not the landowner. It follows that while landowners can change over time, covenants remain in place and enforceable.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Covenants are\u00a0rules which can benefit one party at another&#8217;s expense. For instance, if a lease requires the tenant to refrain from noise after 9 pm, the tenant has an obligation from which the neighbours benefit.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">However, this article focuses mainly on covenants which are likely to affect you as a business owner,<\/span> such as restrictive land covenants.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Restrictive vs Positive Covenants&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Most covenants are obligations to refrain from doing something with the land. These are called restrictive covenants because they restrict your ability to do something with (or to) the land.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Some common examples of restrictive covenants are not to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">undertake additional building or development work on your piece of land;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">use the premises for residential purposes;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">create a nuisance; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">transfer or sublease your lease without your landlord\u2019s permission.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">However, positive covenants require you to do something, which usually involves a cost. The most common positive covenant is an obligation to keep some part of the land in good condition.\u00a0<\/span><\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Business owners like yourself are more likely to encounter restrictive covenants in their commercial leases. Therefore, this article will focus on these rather than positive covenants.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Freehold vs Leasehold Covenants&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">There is also a difference between freehold and leasehold covenants. A leasehold concerns the interest you, as a potential landowner, have in the land. Most business owners lease their premises rather than own them; this article will only consider leasehold covenants.<\/span><\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/09\/06164254\/uk-startup-manual-290x410-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">UK Startup Manual<\/div>\n            <div class=\"body-text\">\n                <p>LegalVision&#8217;s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/uk-startup-manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Landlord vs Tenant Covenants<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">There are two parties to a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/legal-elements-of-commercial-lease\/\">commercial lease<\/a>: the landlord and the tenant. As a result, the law distinguishes between landlord covenants and tenant covenants. Below are some examples:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><b>Landlord Covenants<\/b><\/p>\n<\/td><td>\n<p><b>Tenant Covenants<\/b><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Responsibility for maintaining the common parts and the structure and exterior of the building<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Responsibility for internal, non-structural repair and upkeep<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">To pay for lighting, cleaning and heating&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Not to create a nuisance<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">To insure the building&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Not to assign the lease without landlord&#8217;s consent<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Creating Covenants&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">A covenant can be created in two ways:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><span style=\"font-weight: 400\">implied covenants; or<\/span><\/li><li><span style=\"font-weight: 400\">at the express intention of the parties to the initial lease, otherwise known as express covenants.\u00a0<\/span><\/li><\/ol>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" 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These are listed below.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Quiet Enjoyment <\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">The most important implied covenant is the landlord\u2019s obligation to respect the tenant\u2019s right to quiet enjoyment of the premises. It usually prohibits your landlord from entering the premises without your consent.\u00a0 Your landlord cannot try to exclude this obligation from the lease agreement. If they attempt to, the law will ignore it.\u00a0<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Rent Owed in Arrears\u00a0<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Unless your lease specifies otherwise, the law implies a covenant in the lease that you owe your landlord rent in arrears. This means you must pay your landlord for the previous period, such as the last month or last quarter.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">In practice, all commercial leases will override this with an express term \u2014&nbsp;usually to pay your rent in advance.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Express Covenants&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Most covenants for your business premises are express covenants, meaning they are expressly stated in your lease agreement.\u00a0Even if you were not the original party to the lease when the leasehold was created, you are bound by the leasehold covenants.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Typical express covenants are as follows:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Covenants on the Use of the Premises\u00a0<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Most <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-lease-agreements\/\"><span style=\"font-weight: 400\">commercial lease agreements<\/span><\/a><span style=\"font-weight: 400\"> will specify what you, as the tenant, may use the land for. For instance, the lease may state the building is to be used for retail purposes, so you will breach the covenant if you try to turn the premises into an office.\u00a0<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Covenants Against Alienation\u00a0 <\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Alienation is a term that refers to when a tenant either sells their lease to another party or creates a new lease over the top of the existing one, which is subleasing.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A covenant restricting alienation limits the tenant\u2019s rights to sell the lease or sublease the property. Commercial leases require the tenant to obtain the landlord\u2019s permission before alienating the lease. You should note that your landlord cannot unreasonably withhold consent.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Effect of Breaching a Covenant&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Most lease agreements are written so that if either party breaches their obligations under their covenants, the other party can terminate the lease agreement.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Liability for Subsequent Tenants<\/span><\/h3>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>You must be aware that you could be liable for successive tenants to a leasehold you once occupied because the initial parties to the lease are bound both by the covenant in the land itself as well as the contract creating the land.<\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">For example, imagine you are the first tenant to enter into a new leasehold agreement with your landlord. The lease is for 30 years. One of the lease terms is a covenant not to assign the lease without the landlord\u2019s consent.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">After ten years, you want to upgrade your offices, so you need to sell the lease to a new tenant. Mindful of your obligations under the alienation covenant, you obtain the landlord\u2019s permission to sell the remainder of the lease to a new tenant.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Later, the new tenant subleases the property without the landlord\u2019s consent. The successive tenant later goes bankrupt and quits paying rent.<\/span> <span style=\"font-weight: 400\">In some cases, the landlord may be able to come after you for damages. Therefore, you may want advice on mitigating your liability, such as through indemnity agreements with successive tenants and insurance.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Covenants are obligations that bind individuals with an interest in a particular piece of land. Unlike contractual arrangements, the obligations exist in the land itself rather than between you and your landlord. Therefore, although you did not agree to the covenant, you are still bound by it. The most common covenants you are likely to encounter are restrictions on land use and your right to sell the lease to another party or create a sublease.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You need to understand your restrictions through land covenants because the effect of not abiding by them can cause you to lose your business premises.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding the effect of restrictive land covenants within your commercial lease, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\"><span style=\"font-weight: 400\">leasing lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1665513474742\"><strong class=\"schema-faq-question\"><strong>What is a restrictive covenant?<\/strong><\/strong> <p class=\"schema-faq-answer\">As a commercial tenant, a restrictive covenant in land forbids you from using the property in some way. For instance, a covenant may restrict your ability to use the land as a residential property.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1665513507776\"><strong class=\"schema-faq-question\"><strong>How do restrictive covenants work?<\/strong><\/strong> <p class=\"schema-faq-answer\">For commercial leases, restrictive covenants are attached to the leasehold itself. This means that it binds anyone in possession of the lease.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/176790\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/restrictive-land-covenants\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Do Restrictive Land Covenants Work in England?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a business owner, you are unlikely to often come across land law when running your business.\u00a0However, there may be occasions when you need to understand restrictive land covenants in the context of your business premises, which can confuse newcomers. You need to understand the rules concerning the business premises you use so that you<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/restrictive-land-covenants\/\">Continue reading <span class=\"sr-only\">&#8220;How Do Restrictive Land Covenants Work in England?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13522,"featured_media":551,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"174772,1800,174154,175626,171819,2823","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[30],"tags":[20,61,331,475],"class_list":["post-176790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-lease-property","tag-small-business","tag-commercial-lease","tag-lease-terms","tag-lease-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do Restrictive Land Covenants Work? | LegalVision UK<\/title>\n<meta name=\"description\" content=\"In your business dealings, you may have wondered how restrictive land covenants work. 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