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Restrictive covenants.

The editor of this section is Emma Humphreys, solicitor, partner in Charles Russell LLP (www.cr-law.co.uk)


Discharge and modification

Securing practical benefit to objector

James Hall & Co (Property) Limited v Maughan
[2017] UKUT 240 (LC)

Summary

The Tribunal found that the objectors were seeking to rely upon a negative covenant to achieve a positive result (i.e. to keep a pub trading) and that this did not secure a practical benefit to them since it was open to the pub’s current owner simply to close it. The Tribunal held it was within its jurisdiction to modify the restrictive covenant to encompass both the existing operation of the pub and a proposed convenience store.

Relevant statutory provisions

In outline the relevant grounds for modification or discharge of a restrictive covenant in s84(1) LPA 1925 are:

(aa) that its continued existence would impede some reasonable user of land and that it does not either—
  • secure to persons entitled to the benefit of it any practical benefits of substantial value or advantage to them; or
  • it is contrary to the public interest;
and that money will be an adequate compensation for the loss or disadvantage (if any) which any such person will suffer from the discharge or modification (see s84(1A)).

Facts

The application land was a former pub that had not been particularly profi ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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