Lodgers and restrictive covenants?

Lodgers and restrictive covenants?

8:57 AM, 29th July 2024, About 2 years ago 9

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I own a freehold property and I am thinking of getting a lodger, but my restrictive covenant against the property states:

“Not to use the property or any part thereof for any purpose whatsoever other than as a private dwelling”

That’s all the covenant says in this regard i.e. there is no wording in the covenant that says my property has to be occupied by one family at a one time.

Can I still get in a lodger or 2?

Many thanks

Julia


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Marlena Topple

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Member Since July 2016 - Comments: 164

10:12 AM, 29th July 2024, About 2 years ago

I have that wording in 2 of my btls leasehold flats. I understand it to mean that a commercial business cannot be operated. Tenants use the property as their private residential dwelling so there is no issue.

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Kizzie

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Member Since October 2022 - Comments: 401

11:09 AM, 29th July 2024, About 2 years ago

I would look at other schedules in your lease to see what type of letting permitted example assured shorthold tenancies of 12 months.
The issue for you if you have a mortgage on the property is whether the letting undermines the security on which your mortgage was agreed with your lender.

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Stuart Rothwell

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Member Since April 2024 - Comments: 30

12:27 PM, 29th July 2024, About 2 years ago

Having a lodger still means the property is being used as a private dwelling. Mortgage company will not be interested as a lodger has no security of tenure. Under the circumstances I would have no qualms about getting a lodger in

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Kizzie

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Member Since October 2022 - Comments: 401

14:25 PM, 29th July 2024, About 2 years ago

To be on safe side I’d check as you would with a freehold house

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Marlena Topple

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Member Since July 2016 - Comments: 164

15:51 PM, 29th July 2024, About 2 years ago

I don’t think you have an issue with the covenant. Your mortgage company on the other hand will have provided you with terms and conditions of your mortgage. You should check in those terms and conditions to see if there are any terms that relate to taking in lodgers. You can of course discuss this with them but I would start by looking in your mortgage terms booklet.

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Lina Borzenkova

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Member Since July 2024 - Comments: 12

15:51 PM, 30th July 2024, About 2 years ago

Ensure there are no other clauses or related covenants that might impact your ability to take in lodgers. Some local councils have regulations regarding the number of lodgers or tenants in a private dwelling, so verify with your local authority. Notify your home insurance provider if you take in lodgers to ensure your policy remains valid. Create a clear agreement outlining the terms of the lodgers’ stay to protect both parties legally

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DPT

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Member Since October 2020 - Comments: 1106

18:30 PM, 30th July 2024, About 2 years ago

That wording permits you to take lodgers.

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Kizzie

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Member Since October 2022 - Comments: 401

10:59 AM, 3rd August 2024, About 2 years ago

DPT
On what grounds ? There may be other Covenants in this particular lease which qualify that covenant. All leases are different and depends on what the original parties intended in the lease contract

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DPT

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Member Since October 2020 - Comments: 1106

13:10 PM, 3rd August 2024, About 2 years ago

Reply to the comment left by Kizzie at 03/08/2024 – 10:59You are correct that my wording was too definitive and we can only really talk about likelihoods.
Firstly, there isnt a lease as Julia owns the freehold. She has not mentioned any other covenants and has specifically stated that there is no other restriction related to this one. The legal cases where a prohibition on sub-letting or taking lodgers has been imposed by the courts have tended to relate to other factors, such as the tenure of the main occupier, other restrictive covenants or the legal interest of the challenger. If the situation is simply as Julia has said, with no other significant covenants, then I believe a successful legal challenge of her right to take a lodger would be unlikely.

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