Chandni Pandya contributes to an Estates Gazette Q&A on the modification of restrictive covenants
min readWhen a tenant’s redevelopment plans collide with long‑standing lease restrictions, landlords can find themselves navigating far more than just planning permissions.
Many long‑lease landlords encounter situations where a tenant has obtained planning consent, for example, to convert office premises into residential flats. If the lease contains restrictive covenants governing use or development of the property, these covenants can stand in the way of the proposed works, even when planning permission is already in place.
In practice, a landlord may hold no objection in principle to the redevelopment and may even own other properties nearby, making them naturally attuned to any broader impact on the surrounding estate. However, even in the absence of objections, a landlord may reasonably seek a premium in exchange for consenting to the change.
Against this backdrop, landlords often reflect on the real leverage they have and the practical risks involved. A key consideration is the possibility that a tenant might turn to section 84 of the Law of Property Act 1925, applying to modify or discharge the leasehold restrictive covenants that stand in their way. Understanding how this mechanism works—and how likely a tenant may be to succeed—frequently forms part of the strategic thinking for landlords facing similar redevelopment scenarios.
Chandni Pandya, Associate in our Real Estate Disputes team, contributes to an Estates Gazette Q&A on the topic in a co-written article with Peter Sibley, Barrister at Landmark Chambers.
Read the full article in Estates Gazette here (subscription required).
