University of East London Higher Education Corporation v Barking & Dagenham London Borough Council [2005] EWHC 2908 (Ch)
If a restrictive covenant exists for the benefit of adjoining premises and both properties pass into the same legal ownership, the restrictive covenants will automatically cease to bind the servient land and will not revive on a subsequent severance unless the owner recreates them.
Restrictive covenants are not, however, extinguished by unity of ownership if the dominant and servient properties are held by the same trustee but on different trusts. No merger will take place unless the relevant interests are held in the same right.
Buyers beware! This High Court decision extends the principle to local authorities and public bodies in cases where such a body holds land for different statutory purposes.
Allyson Colby is an associate in the real estate group at Wragge & Co LLP
University of East London Higher Education Corporation v Barking & Dagenham London Borough Council [2005] EWHC 2908 (Ch)
If a restrictive covenant exists for the benefit of adjoining premises and both properties pass into the same legal ownership, the restrictive covenants will automatically cease to bind the servient land and will not revive on a subsequent severance unless the owner recreates them.
Restrictive covenants are not, however, extinguished by unity of ownership if the dominant and servient properties are held by the same trustee but on different trusts. No merger will take place unless the relevant interests are held in the same right.
Buyers beware! This High Court decision extends the principle to local authorities and public bodies in cases where such a body holds land for different statutory purposes.
Allyson Colby is an associate in the real estate group at Wragge & Co LLP
