What is a restrictive covenant and how can it affect me?

A restrictive covenant is a legal promise written into a property’s title that limits what the owner can do with the land or buildings. These covenants “run with the land,” meaning they bind future owners — including you, if you purchase the property at auction.

Restrictive covenants can seriously affect how you use or develop the property, and breaching them can lead to legal action, including court-ordered reinstatement or financial compensation.

What does a restrictive covenant do?

It may prohibit:

Building on part of the land (e.g. no extensions, no second dwelling)
Using the property for certain purposes (e.g. no business or Airbnb use)
Making structural alterations without consent
Parking certain vehicles (e.g. caravans, commercial vans)
Keeping animals or running a trade
Creating nuisance (e.g. noise, smell, overcrowding)

How will I know if a property has one?

Restrictive covenants will be shown on the official copy of the Title Register. Sometimes they’re set out in full — other times they’re referred to in older deeds that must be read alongside the title. Auction packs may include only partial information.

Check:

The Title Register and Title Plan
The legal pack for any referred deeds or covenants
With your solicitor if anything is unclear — we can interpret and advise

Can they be removed?

Some restrictive covenants can be removed or varied by agreement with the person who benefits — often the original developer, neighbouring landowner, or residents’ association.
In other cases, you may apply to the Upper Tribunal (Lands Chamber) to have a covenant discharged — but this is a lengthy and uncertain legal process.
We can advise on whether this is realistic based on your circumstances.

Summary

Restrictive covenants can limit what you can do with a property and may lead to costly legal disputes if ignored. At Versus Law, we always review the Title Register and covenants before auction — and flag any issues that could affect your plans.

What is a legal indemnity policy and when would I need one?

A legal indemnity policy is a type of insurance that protects you — and sometimes your lender — against specific legal risks affecting a property. These policies are commonly used in auction purchases, where there is no time to fix legal issues before completion, and the buyer agrees to take the property “as is”.

Rather than resolving a legal defect (which may take months or involve third parties), an indemnity policy provides financial protection if the issue causes a loss in future.

What does a legal indemnity policy cover?

Lack of building regulations approval for past works
No planning permission for extensions, conversions, or alterations
Missing title deeds in unregistered land
Access rights not properly documented
Restrictive covenant breaches (e.g. building without consent)
Absence of easements for services or drainage
Chancel repair liability (an old obligation to contribute to church repairs)

The policy won’t fix the legal defect, but it will cover you for financial loss or legal costs if someone enforces the issue in future.

When would I need one?

Legal indemnity policies are used when:

The issue can’t be resolved before completion
The seller refuses to remedy the problem
The buyer is willing to proceed, but only with risk protection
The lender insists on it as a condition of mortgage release

In auction purchases, indemnity insurance is often the only practical solution to meet strict deadlines.

How much does it cost?

Most indemnity policies are one-off premiums, typically between £20 and £500, depending on the type of cover and property value. The policy usually lasts indefinitely and may be transferable on resale.

Either the seller or buyer can pay, depending on negotiation — in auctions, it’s usually the buyer.

What does it not cover?

Defects you caused yourself
Risks you were aware of but failed to disclose
Physical defects or poor workmanship
Costs of bringing a property up to modern standards

It is a passive protection, not a solution — and does not replace due diligence.

Summary

Legal indemnity insurance is a useful tool in auction transactions where legal issues can’t be resolved before completion. It allows you to proceed safely without delay — knowing you’re protected if the issue ever becomes a problem. At Versus Law, we regularly arrange tailored indemnity cover to help clients complete securely and on time.

What is a restrictive covenant and how can it affect me?

Restrictive covenants can seriously affect how you use or develop the property, and breaching them can lead to legal action, including court-ordered reinstatement or financial compensation.

What does a restrictive covenant do?

It may prohibit:

Building on part of the land (e.g. no extensions, no second dwelling)
Using the property for certain purposes (e.g. no business or Airbnb use)
Making structural alterations without consent
Parking certain vehicles (e.g. caravans, commercial vans)
Keeping animals or running a trade
Creating nuisance (e.g. noise, smell, overcrowding)

What do I do if the seller promised vacant possession but someone is still in the property?

If you’ve bought a property at auction on the basis that vacant possession would be given on completion — but find that someone is still occupying it, this can be a serious issue. It could be a former owner, a tenant, a squatter, or someone else claiming a right to remain.

In such cases, it’s essential to act quickly, carefully, and legally — because the presence of an occupier could delay your plans, restrict access, or even expose you to legal risk.

What is “vacant possession”?

Vacant possession means the property will be:

Physically empty (no occupants)
Legally unoccupied (no one has a continuing right to remain)

This is usually promised in the Special Conditions of Sale or contract summary in the auction legal pack.

Who might be in the property?

You may find the property is still occupied by:

A former owner who has not moved out
A tenant or licensee with a valid or expired agreement
A family member or other person with a legal or informal right to remain
A squatter or unlawful occupant who has entered after exchange

Each situation requires a different legal response — and until resolved, you may not be able to let, renovate, or sell the property.

What are your legal options?

If the seller promised vacant possession and failed to deliver, this is a breach of contract.

You may be entitled to compensation, a retention, or in some cases, refuse to complete (though this is rare in practice).
If someone is in occupation without a legal right, you can apply to court for a possession order under Part 55 of the Civil Procedure Rules.
This process typically takes 4–6 weeks, or longer if defended.
Once a possession order is granted, you may apply to transfer it to the High Court for faster eviction — especially if the occupant is trespassing.
If the occupant is a tenant or licensee, their rights must be considered. You may need to serve notice (e.g. Section 21 or Section 8) before possession is granted.

Can Versus Law help?

Yes — we work with litigation and eviction specialists who can:

Review your contract and advise on remedies
Serve legal notices and issue possession claims
Represent you in court and instruct bailiffs
Negotiate with occupiers where appropriate

If the auction seller misled you, we may also be able to pursue legal redress on your behalf.

Review the auction contract
Issue possession proceedings
Use High Court enforcement
Check if an agreement exists

Summary

If you’ve bought a property with vacant possession promised — but someone is still inside — you need to act quickly. Whether it’s a tenant, squatter, or previous owner, we can help you navigate the legal steps to regain control. At Versus Law, we combine auction expertise with litigation support to help you resolve occupancy problems efficiently and lawfully.

What if the seller hasn’t cleared the property by completion?

What does “vacant possession” actually mean?

“Vacant possession” is a legal term meaning:

No one is physically occupying the property.
The property is not being used by anyone else.
The property is free of furniture, personal items, and rubbish (unless agreed otherwise).
You have unfettered access to take possession and use the property as you wish.

It’s more than just being “empty” — it means there are no legal or practical barriers to occupation.

What can go wrong?

You may find that:

The seller has left old furniture, junk, or personal belongings behind.
Former tenants, family members or squatters are still in the property.
The seller has not cleared out sheds, garages, or loft spaces.
The property is dangerous or unsanitary, making access difficult.

This is particularly common where:

The seller is a receiver or mortgagee in possession.
The property has been inherited or repossessed.
The seller has not visited the property recently.

When you buy a property at auction with vacant possession, it is expected that the property will be empty of both people and possessions on the day of completion. However, in some cases, buyers find that the property has been left full of contents, rubbish, or even remains occupied. This can create both practical and legal problems, particularly if you were intending to rent, renovate, or sell the property immediately.

What are your options?

If the contract states that the property is sold with vacant possession, then the seller is in breach of contract if it is not cleared by completion.

You can:

Require the seller to remove items at their cost.
Arrange clearance yourself and claim the reasonable cost back (if the contract allows).
Delay completion only in very limited circumstances (and at your own risk).
Seek damages — but legal remedies may be limited or time-consuming.

If the property is occupied, you may need to take formal legal steps such as:

Serving notice to vacate.
Applying to court for possession (if occupation is unauthorised).
Instructing bailiffs or eviction specialists.

What should you do?

Always confirm in the legal pack whether the property is sold with vacant possession or subject to occupation.
Ask your solicitor to flag any potential issues before bidding.
Inspect the property (if possible) before auction to get a sense of its condition and contents.
Budget for clearance or legal possession costs, especially with repossessed or probate properties.

Summary

If a seller fails to clear the property by completion, they may be in breach of the auction contract — but your remedies depend on the specific terms agreed. It’s vital to check whether vacant possession is guaranteed and to prepare for the possibility of dealing with leftover contents or occupants. At Versus Law, we help our clients enforce their rights and resolve post-completion issues quickly and professionally.

What happens if the seller pulls out after the auction?

While rare, it is possible that a seller may withdraw from a sale after the auction, even though auction contracts are legally binding. This can be frustrating and disruptive — especially if you’ve already incurred costs for searches, surveys, or finance.

Is the seller legally bound?

Yes — just like the buyer, the seller is legally committed to the contract the moment the auctioneer’s hammer falls. They are expected to complete on the agreed terms and date.

However, problems may arise if:

The seller is unable to transfer good title (e.g. due to a title defect, disputed ownership, or missing documentation).
A third party objects to the sale (such as a co-owner, executor, or lender).
The seller fails to comply with their obligations under the contract (e.g. providing vacant possession or removing tenants).
The seller is insolvent or unavailable (in rare cases).

What are your rights?

If the seller defaults:

You are usually entitled to a full refund of your deposit.
You may also be entitled to interest, your costs, or damages, depending on the circumstances.

However, enforcing your rights may require legal action, and recovering compensation is not always straightforward.

It is important to note that most auction conditions limit the buyer’s remedy to a return of the deposit only — unless the breach is serious or intentional.

What should you do?

Ask your solicitor to review the contract for default provisions.
Ensure your legal and financial losses are documented (e.g. searches, survey fees, bridging finance costs).
Be prepared to pursue legal remedies if necessary — though this can take time and carry risk.

Summary

While a seller pulling out is unusual, it does happen — and buyers have legal rights if it does. That said, your remedies may be limited by the auction terms. At Versus Law, we help clients assess their options and pursue appropriate action when a seller fails to complete.

What if the property is in poor condition or has been stripped out?

When buying at auction, it’s important to understand that the property is sold exactly as seen — and as described in the legal pack. There are no guarantees about the condition of the building, fixtures, or even whether the property will be left intact between exchange and completion.

In some cases, especially with repossession, probate, or vacant properties, buyers have found that:

The kitchen or bathroom has been removed
Boilers, wiring, or copper piping have been stripped
The property has been vandalised or damaged
Rubbish or abandoned belongings have been left behind

What does the contract say?

Most auction contracts include clauses such as:

The buyer accepts the property in the physical condition it is in at the time of the auction
The seller gives no warranties or guarantees about condition
The buyer is responsible for any issues discovered after exchange

In other words, you buy at your own risk — and the seller has no obligation to fix or reinstate anything that is damaged or removed after the auction.

What can I do to protect myself?

Always view the property in person, if possible.
Read the auction legal pack thoroughly — look for disclaimers, possession terms, or any reference to “as seen”.
If condition is a concern, consider commissioning a survey before the auction.
Assume the worst-case scenario for repairs and budget accordingly.

If you discover damage after exchange, you usually have no legal remedy, unless the seller has deliberately misled you (which is rare and hard to prove).

Will the property be cleared?

Unless the auction pack specifically promises “vacant possession” and clearance, the seller is not obliged to remove items. You may need to:

Arrange a clearance company at your own cost
Dispose of unwanted items or furnishings
Take further steps if hazardous waste is left behind

Summary

At auction, what you see is what you get — and sometimes, what you get may be worse than expected. The property may be in poor condition, vandalised, or missing key fittings. That’s why it’s vital to inspect the property beforehand, read the legal pack closely, and get advice from experienced auction solicitors like Versus Law. We can help you assess the risks — before you’re locked in.

What is a Fire Risk Assessment (FRA)?

A Fire Risk Assessment (FRA) is a legal requirement for most residential buildings, especially blocks of flats and converted houses containing multiple dwellings. It involves a structured evaluation of the fire risks in the property, with the aim of identifying hazards and ensuring that appropriate fire safety measures are in place.

Who is responsible for the FRA?

The “responsible person” is usually:

The freeholder, or
A management company or Right to Manage company, or
A letting agent acting on behalf of the landlord.

They must ensure that the building has a suitable and sufficient fire risk assessment carried out regularly — typically by a qualified fire safety professional.

What does an FRA include?

A fire risk assessment typically covers:

Escape routes and whether they are clear and properly marked.
Fire doors and alarms – whether they are installed, working, and compliant.
Cladding and external walls – whether materials pose a fire risk.
Compartmentation – whether the building structure helps contain fire.
Signage and emergency lighting.
Firefighting equipment and sprinkler systems (if applicable).
Any recommendations for remediation or ongoing monitoring.

The findings will be summarised in a written report, which should be made available to leaseholders and buyers.

Why it matters when buying at auction

An FRA is crucial for safety and legal compliance — especially in older or high-rise buildings.
Some lenders may ask for a copy as part of their mortgage requirements.
If the FRA identifies serious fire safety concerns, the building may require expensive works — and leaseholders usually pay for these via service charges.
A missing or outdated FRA may suggest that the building is not being properly managed.

Auction legal packs often do not include an FRA. As a result, you may be buying into a block where:

The current safety status is unclear, and
You may later receive costly demands for compliance works.

Summary

A Fire Risk Assessment is essential for ensuring that a block of flats meets safety standards and complies with the law. If you’re buying at auction and an FRA is not provided, you are accepting the fire safety risk — which could result in serious costs and resale problems. At Versus Law, we advise all auction buyers to confirm whether an FRA is available before bidding, particularly for high-rise or converted buildings.

What is the Building Safety Act and EWS1 form?

In response to the Grenfell Tower tragedy, the UK government introduced a range of new laws and safety requirements to protect residents in high-rise and high-risk residential buildings. Two key elements buyers should be aware of are the Building Safety Act 2022 and the EWS1 form (External Wall System certificate).

The Building Safety Act 2022

The Act introduced wide-ranging reforms to building safety regulations in England and Wales. Key features include:

Applies to buildings over 11 metres or 5 storeys (reduced from 18m in earlier guidance).
Introduces legal obligations for building owners to assess, manage, and report on building safety risks.
Creates new protections for leaseholders from unfair cladding remediation costs.
Establishes a Building Safety Regulator with enforcement powers.
Requires a Golden Thread of Information — a comprehensive, digital record of the building’s design, construction, and safety management.

Under the Act, leaseholders are protected from certain historical building safety costs. However, this protection only applies if the building and leaseholder meet the strict legal conditions.

What is an EWS1 form?

An EWS1 (External Wall System) form is a fire safety assessment for the external walls and cladding of a building.

It must be completed by a qualified fire engineer.
It determines whether the external wall materials (such as cladding or insulation) pose a fire risk.
It is used by mortgage lenders to assess whether the property is safe and mortgageable.

If the building receives a ‘B2’ rating, it means remedial work is required. A rating of ‘A1’, ‘A2’, or ‘B1’ means the building is considered safe or has acceptable mitigation measures.

Auction sale risks

In auction purchases:

The EWS1 form may not be included in the legal pack.
The seller may not disclose fire safety issues or confirm whether works are planned.
The buyer may inherit the risk of future costs or resale difficulties.
If the flat is in a building over 11 metres and there is no EWS1, you may:
- Struggle to get a mortgage, or be limited to specialist lenders.
- Be unable to resell the flat until fire safety status is confirmed.
- Face demands for service charge increases or cladding contributions if the property is not exempt under the Act.

Summary

The Building Safety Act and EWS1 form are now central to buying flats in high-rise buildings. If you’re purchasing at auction and no EWS1 form or fire safety details are included, you are accepting a potentially significant risk. Always consult a solicitor (such as our team at Versus Law) before bidding on such properties — we are experienced in reviewing building safety documentation and advising on risk exposure.

What is an LPE1 form and why haven’t I seen one?

An LPE1 form — short for Leasehold Property Enquiries Form 1 — is a standardised questionnaire completed by the landlord, freeholder, or managing agent when a leasehold property is being sold. It is designed to provide essential information to the buyer about how the building is managed and what charges or restrictions apply.

What does the LPE1 include?

The LPE1 form covers:

Who manages the property – including contact details for the freeholder or managing agent.
Service charges – how much is paid, what it covers, and any outstanding arrears.
Ground rent – annual amount, when it is due, and whether it increases.
Major works – planned or proposed works that may result in high costs for leaseholders.
Insurance arrangements – including whether the building is insured and who is responsible.
Notices and consents – such as requirements for subletting, alterations, or pets.

This form is vital in a standard transaction, as it gives the buyer clarity about financial and practical commitments under the lease.

Why haven’t you seen one?

In auction sales, the LPE1 form is often not included in the legal pack. This is usually because:

The seller may not request it — often due to time or cost.
Managing agents may charge a high fee (commonly £300–£600+ VAT) and take several weeks to complete it.
Auction sellers typically want to avoid delays, so they proceed without this documentation.
The sale is “as seen” — sellers are not obliged to provide full pre-contract enquiries.

Why this matters

Buying a leasehold flat without an LPE1 means you may have no reliable information about:

How much you’ll pay in service charges.
Whether there are outstanding arrears or disputes.
Whether there are upcoming works or repair bills.
How the building is insured and who to contact.

You may find out only after completion that you owe hundreds or even thousands of pounds in unpaid charges — or that the building has structural issues or cladding concerns.

Summary

The LPE1 form is an essential part of understanding a leasehold property — but it is commonly missing in auction sales. You are expected to buy at your own risk, without full information. At Versus Law, we always highlight when this information is absent and can assist you in requesting it post-completion if needed.

Can I extend the lease and how?

Yes — you can extend the lease on a leasehold property. Importantly, as of 31 January 2025, the requirement to have owned the property for two years before initiating a statutory lease extension has been abolished under the Leasehold and Freehold Reform Act 2024.

Two routes to extend a lease

1. Statutory lease extension (formal process)

You can now initiate this process immediately upon acquiring the property, without the previous two-year ownership requirement.
The extension provides an additional 90 years on top of the existing term.
The ground rent is reduced to a peppercorn (effectively zero).

2. Informal lease extension (negotiated approach)

This can be done at any time and may be quicker.
However, terms are not guaranteed and may include:
- Higher premiums.
- Continuation of ground rent.
- Less favorable terms overall.

How we can help

At Versus Law, we specialize in lease extensions and can assist you with:

Evaluating the best route for your circumstances.
Serving statutory notices and managing the formal process.
Negotiating favorable terms in informal extensions.
Liaising with freeholders and managing agents.

Summary

With the abolition of the two-year ownership rule, extending your lease has become more accessible. Whether you choose the statutory route or negotiate informally, it’s crucial to understand the implications and ensure the terms are favorable. Our team at Versus Law is here to guide you through every step of the process.

351 Reviews

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Wetherill

What an outstanding team they turned my purchase around within the set time frame and very professional at all times.
They went above and beyond reassured myself throughout the process.
As being a first time buyer I felt this was most important I would recommend them highly.
Nasir

Versus Law dealt with my house sale from start to finish in a most professional manner. A friendly, professional, competent team who get the job done within the time parameters. I highly recommend this firm.
Colin and Yvonne

Absolutely brilliant service as always.
This is the third time using Versuslaw and they never fail to impress. Natalie and Nicola are real diamonds and you really get the sense that they actually care about you.

We actually live in London, but continued to use them for our London property because of our previous experience with them.
Thank you guys, would highly recommend you to anyone.
B Man

Excellent service!!! We are really happy with the service VersusLaw provided to us. Being first time buyer, we dint have much idea about the whole process and had lots of questions. They have given proper and clear response on time to everything we have requested. For us, one of the property got cancelled in between the process because the owner decided to not to sell that property few days after accepting our offer. Though there were searches and procedures done already for that property VersusLaw did not ask Fee for that purchase as they understood the difficult situation we were in. When we found our next property, we had no doubt whom to contact. We are really happy and totally satisfied by the service Nicola, Natalie and their team offered. We will highly recommend your service to anyone,
Ross Grant

Today I have completed on the purchase of my very first apartment, and it just wouldn’t have been possible without the INCREDIBLE knowledge, guidance and GENUINE care of Nicola, Natalie, and the entire Versus Law team.

This purchase was far from straightforward, with lots of potential pitfalls – all navigated with professionalism, patience and an impeccable attention to detail by Nicola.

Nic went well above and beyond the call of duty to look into some extremely complex accounts and repair budgets to the apartment block in question – something I would have completely overlooked.

As a result, with her guidance, I managed to negotiate a £2,000 reduction in asking price – something I’m sure other solicitors would have let slip through the net.

That’s a genuine £2000 saving – a lot of money for a first-time buyer.

You get a real sense that these guys actually CARE – they make you feel more like a friend, than a client – and don’t leave a stone unturned when it comes to conveyancing. If there is anything to uncover on a property, trust me, Nicola will find it!

In essence, Versus Law made what could have been a rather stressful situation, easy and straightforward.

Communications and response times were brilliant, with daily updates coming via phone and email – and I never felt rushed by anyone when I had queries.

I honestly cannot recommend Versus Law enough.

I’m going to pick up the keys to my apartment now – and won’t be using anyone other than these guys for all future property purchases/ sales.

THANK YOU SO MUCH Versus Law – I’ll be raising a glass of champagne to you all at the housewarming! 🙂
CW

Great service provided by Nicola and her team.
Always communicating with updates for the completion of my property.
Would highly recommend
Jackie

I used Versus Law to buy my first house. Had no idea how it worked but I must say that the conveyancing team held my hand all the way through. On the day of completion there was a delay and they stayed in office late to ensure it went through so I wasn’t waiting over the weekend. It was an absolute pleasure to deal with Versus Law and I wouldn’t hesitate to recommend them. It was nice to speak to people who I felt cared for me and put my interests first at all times. Thank you so much for your help
Andy

Versus were great to deal with when they provided the conveyancing for my house purchase. I was able to complete the process without needing to physically travel to their offices and my solicitor was always available for any questions when I was completing all the paperwork. Everyone was very friendly to speak to.
T Baguley

Fantastic conveyancing service from Nicola and Natalie, they kept on top of everything from start to finish and were always available whenever we had questions. I’d be happy to recommend them to anyone.
David JC

Very impressed with every aspect of Versus Law, from service they provide to the attitude of the staff. Always called back when they said they would and had a laugh with them too. Will definately use again (if I need to).
Mrs Morris

I would recommend Versus Law to anyone, particularly Nick Wintrip, who looked after us extremely well. They are very efficient and communicated with us fully at all times. We were able to contact them by phone and e mail and did not need to rely on letter going back and forth. Nick is really friendly too and put us at ease throughout the end to end sales process. Thank you.
Tanita

Nicola and Natalie did a wonderful job. They were friendly and patient. Answered my many many questions and got the job done very efficiently. I am highly impressed and would definitely recommend them.

DM

D Rahman

Storm

A Ali

R Nabi

B Keane

K Boon

M Rehman

J Nugent

Steven P

Liz

Gem

Bonnie

Daniel

M

Richard

C Savage

J Percy

J Guntren

P Godfrey

G Ryder

Mark

C Keen

V Griffith

J Williams

S Foster

H Cooper

I Asaf

M Long

Jill T

Danielle

Frankie

Matt W

Kay

O Li

Mr RS

Mrs LC

Jaxx

Paula

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R Napier

Wetherill

Nasir

Colin and Yvonne

B Man

Ross Grant

CW

Jackie

Andy

T Baguley

David JC

Mrs Morris

Tanita

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