Dwellinghouse versus Household – covenant issue

by Readers Question

12:30 PM, 30th October 2015
About 4 years ago

Dwellinghouse versus Household – covenant issue

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Dwellinghouse versus Household – covenant issue

I am looking to remortgage with an HMO lender with the view of renting to sharers on individual ASTs. My property title has a covenant restricting the use to ‘one single dwellinghouse’. covenant

I understand the lenders are very careful with breaches of covenants when it comes to lettings. As far as I understand, the HMO and lettings regs use the concept of ‘household’ as opposed to ‘dwellinghouse’, so my covenant should not prevent me from letting to sharers.

Can any body shed some light on this issue, do I have a problem here ?

Many thanks

Chris



Comments

Lawrence Jones

13:46 PM, 30th August 2017
About 2 years ago

Hi

I'm in the process of buying a new build freehold 4 bed house and would look to rent it out. The contract for sale has a restriction under transferee's covenants stating that not to;

"use or permit the use of the property for any purpose other than as a private dwelling house in the occupation of one household only..."

So instead of your single dwelling house, the convenant is adding it to one household only. This seems to create a larger restriction for me as a Landlord. Any thoughts?

As you are aware, in today's modern world there maybe friends or couples who'd like to share and rent together. I challenged this clause with the developer's solicitors who came back to say "this is a precedent transfer and must remain as drawn."

What does it mean by a precedent transfer and is there any way I can get this clause changed to include more than one household?

Thanks

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