[2000] EWLands LP_25_2000 (20 November 2000)
LP/27/1999
LP/25/2000
LANDS TRIBUNAL ACT 1949
RESTRICTIVE COVENANTS – restriction to 1 house per plot – application to modify to allow residential development in rear gardens – whether practical benefits of substantial value or advantage secured to objectors – whether injury to objectors – related application to modify restriction relating to approval of plans – both applications dismissed – Law of Property Act 1925, section 84(1)(aa)(1A)(1B)
IN THE MATTER of APPLICATIONS under SECTION 84(1) of the
LAW OF PROPERTY ACT 1925
BY RODNEY IAN DIGGENS
MARGARET HAZEL KING
ROBERT HENRY COX
GEORGETTE ALBINE COX
Re: 37, 39 and 41 Seymour Road
St Albans, Hertfordshire
Tribunal Member: P H Clarke FRICS
Sitting at 48/9 Chancery Lane, London WC2
on 23 & 24 October 2000
The following cases are referred to in this decision:
Re Bass Ltd (1973) 26 P & CR 156
Bell v Norman C Ashton Ltd (1956) 7 P & CR 359
Re Bromor Properties Ltd (1995) 70 P & CR 569
Re Tarhale Ltd (1990) 60 P & CR 368
Re Snaith & Dolding (1995) 71 P & CR 104
Re Martin (1988) 57 P & CR 119
Gilbert v Spoor [1983] 1 Ch 27
Re Sheehy (1991) 63 P & CR 95
Re Chandler (1958) 9 P & CR 512
Re Stevens (1962) 14 P & CR 59
Re Banks (1976) 33 P & CR 138
Re Gossip (1972) 25 P & CR 215
Re North (1998) 75 P & CR 117
Re Saviker (No.2) (1973) 26 P & CR 441
Stannard v Issa [1987] AC 175
Re Henderson's Conveyance [1940] Ch 835
Re Williams (1988) 55 P & CR 400
Re Ghey & Galton [1957] 2 QB 650
Re Farmiloe (1983) 48 P & CR 317
Re Henman (1972) 23 P & CR 102
McMorris v Brown [1999] 1 AC 142
Ridley v Taylor [1965] 1 WLR 611
Mr Gary Webber of counsel instructed by Taylor Walton, solicitors of Luton, for the applicants.
Mr Edward Cousins of counsel instructed by Dawson & Co, solicitors of London WC2, for the principal objectors.
Mrs Anne Kalocza, an objector, in person.
The other objectors did not appear and were not represented.
DECISION OF THE LANDS TRIBUNAL
FACTS
"…the Purchaser for himself his heirs and assigns owners or occupiers for the time being of the land hereby conveyed and to the intent that the burden of this covenant shall run with the land hereby conveyed and the benefit thereof with the adjoining land of the Vendor as such Tenant for Life as aforesaid but so as not to impose any personal obligation on the Purchaser after he shall have parted with the possession of the said land hereby covenants with the Vendor to observe and perform the stipulations and restrictions mentioned in the First Schedule hereto"
The First Schedule contains the two restrictions which are the subject of these applications:-
"2. Not more than one detached or semi detached house shall be erected on the said land such house to be of not less pre-war value than £350.00 to be estimated according to the actual price of materials and labour employed in the erection thereof exclusive of boundary walls or fences and no such house or building shall project beyond the 20 feet building line shown on the said Plan
4. No house shall be erected on the said land until the plans thereof have been submitted to and approved by the Vendor's Agents and their fee of 10s 6d for such approval paid by the Purchaser"
I will refer to the first of these covenants (no.2) as "the density restriction" and to the second (no.4) as "the plans restriction". The applicants are the successors in title of the above purchasers. The objectors are the successors in title of the adjoining land formerly owned by Earl Spencer.
(1) the plaintiffs (Dr Grenby, Mr and Mrs Hearn and Dr and Mrs Hempenstall) are entitled to enforce the restrictions against the defendants (Litchfield Developments Limited and the applicants in this current application);
(2) the restrictions prohibit the erection of additional houses on the application land.
It was ordered that the defendants shall be at liberty to apply to the Lands Tribunal under section 84 of the Law of Property Act 1925.
DENSITY RESTRICTION
"2. Not more than one detached house or semi-detached house shall be erected on the said land such house to be of not less pre-war value than £350 to be estimated according to the actual price of materials and labour employed in the erection thereof exclusive of boundary wall or fences and no such houses or building shall project beyond the 20 feet building line shown on the said Plan SAVE that further houses may be built upon the said land if the following conditions are complied with:
(1) That the said houses are built pursuant to the planning permission granted on appeal by Philip Ware BSc DipTp MRTPI, Planning Inspector, in planning application no.5/981237 and in accordance with the conditions imposed by the said inspector.
(2) That the window shown in the flank wall of the house on Plot 2 on the plan entitled "Ground Floor Layout Proposal" (revision B, dated 26 May 1998, forming part of the planning application) shall not be inserted.
(2A) No new windows or other openings shall be inserted and no existing openings shall be enlarged in the ground floor of the west flank walls of the houses on Plots 2 and 3 (shown on the plan entitled External Elevations dated 24 June 1998, forming part of the aforesaid planning application) without the written consent of the freehold owner(s) of 45 Seymour Road".
The words to effect the modification are in italics.
Section 84(1)(aa) of the 1925 Act
Applicants' case
Evidence
Submissions
Objectors' case
Evidence
Submissions
Decision
(i) The original Fontmell Close development has not made any real change to the street scene or character of Seymour Road, nor has it had any perceived impact on 45-9 Seymour Road.
(ii) The gardens of 45-9 Seymour Road are currently affected by shadowing from their own trees.
(iii) The rear garden of no.45 is shadowed by the trees in the garden of no.41 and by the tall trees along the boundary with the school.
(iv) The shadowing which will be cast by plot 2 over the rear garden of no.45 will be of a different and more solid nature than that cast by the trees.
(i) Whether the modification of the restriction to allow the proposed development will result in a dramatic change in the outlook from 45-49 Seymour Road and a complete loss of privacy to their rear gardens?
(ii) Whether the proposed houses will have an adverse impact on the enjoyment or use of 45-49 Seymour Road?
"… merely a circumstance which the Lands Tribunal can and should take into account when exercising its jurisdiction under section 84. To give the grant of planning permission a wider effect is, I think, destructive of the express statutory jurisdiction conferred by section 84. It is for the Tribunal to make up its own mind whether the requirements of section 84 are satisfied." (per Fox LJ in Re Martin at page 125).
"…a planning permission only says, in effect, that a proposal will be allowed; it implies perhaps that such a proposal will not be a bad thing but it does not necessarily imply that it will be positively a good thing and in the public interest, and that failure of the proposal to materialise would be positively bad. Many planning permissions have got through by the skin of their teeth, and I think that the assistance derived from a planning permission at this stage of things is little more than the negative assistance of enabling it to be said that at any rate there was not a refusal."
[The defendants' surveyor] "said that town planning approval had been obtained for houses on this scale of density; modern conditions demand that suburban planning should be on that kind of scale; that is the right density at which suburban people ought to live; and if they do not they are obsolete and they ought to be disregarded as being anti-social persons wanting more room than in a crowded country it is right that they should occupy. I must confess that I was much incensed by this evidence. There does remain in a world full of restrictions and of frustration just a little freedom of contract. I do not see why a man should not contract that he shall have half an acre round him and not four neighbours right on him. I do not see why it is anti-social to wish to have a little longer bit of garden or a little wider bit of frontage. To suggest that because these people live on an estate near others where the density is greater their rights ought to be disregarded by the court and swept away is a proposal which I reject with some indignation."
"The words of section 84(1A)(a), in my opinion, are used quite generally. The phrase 'any practical benefits of substantial value or advantage to them' is wide. The subsection does not speak of a restriction for the benefit or protection of land, which is a reasonably common phrase, but rather of a restriction which secures any practical benefits. The expression 'any practical benefits' is so wide that I would require very compelling considerations before I felt able to limit it in the manner contended for. When one remembers that Parliament is authorising the Lands Tribunal to take away from a person a vested right either in law or in equity, it is not surprising that the tribunal is required to consider the adverse effects upon a broad basis."
A practical benefit may be non-pecuniary (see Re Bass at page 162 and Re Stevens at page 62). In Re Bass the member said (page 162):-
"I think that the words 'value or advantage' rather emphasise that the benefits are not intended to be assessed in terms of pecuniary value only."
(i) From the rear ground floor windows of 45 Seymour Road partial views of the first floor and roof of plot 3 may be seen across the intervening garden of no.43, dependent on the season and to existing trees and shrubbery remaining.
(ii) From the first floor windows of 45 Seymour Road there will be indirect views across the intervening garden of no.43 towards part of the ground floor and most of the first floor, roof and flank wall of plot 3.
(iii) From the first floor windows of 47 and 49 Seymour Road there will be indirect views of the first floors, flank walls and roofs of plots 2 and 3.
(iv) Plots 2 and 3 will be clearly visible from the rear garden of 45 Seymour Road.
"Moreover, I think there is a practical benefit in having a garden which is not overlooked by a house or houses immediately adjoining it."
In Re Gossip the Tribunal considered an application to build two additional dwellings in the gardens of two detached houses, restricted by covenant to a single house per plot. The member (E C Strathon) found that, in addition to the general fear of future development (the thin end of the wedge), the restriction secured practical benefits to the neighbouring objectors by the prevention of overlooking of their gardens. He observed that the screening of one garden by hawthorn was a poor substitute for a covenant. In addition, the building of the proposed two dwellings would have the effect of closing-in the open character of that corner of the estate. In Re Williams application was made to modify a covenant restricting development to one double or two separate or single villas to allow a house to be built in addition to the two houses already on the land. Among the benefits found to be secured by the restriction were the prevention of detriment to amenities, overlooking of windows on the ground and first floors and the sense of spaciousness enjoyed when looking over the application land.
(i) There will be no views to or from the ground floor windows of plots 2 and 3 over the garden of 45 Seymour Road, assuming the erection of a 1.8 metre high boundary fence and similar ground levels.
(ii) There will be angled views from the first floor windows of plot 2 and 3 over the rear garden of 45 Seymour Road.
(iii) The occupiers of 45-49 Seymour Road can at present see into each other's gardens adjacent to the rear elevation of their respective properties from the first floor windows.
(iv) The rear part of the garden of 45 Seymour Road is not visible from nos.45 or 49 at ground level due to a deciduous trees but may be visible in winter months.
"Section 84 speaks of 'loss or disadvantage.' Boot made no attempt to prove that the proposed modification would involve them in any appreciable financial loss but they did urge very strongly that to undermine their principle of 'one plot, one house' would be a disadvantage. I agree. That finding can only lead to the dismissal of this application."
In Re Sheehy applications were made to modify restrictions which provided that no future building should be permitted on two plots on an estate. The objectors were the trustees of part of the estate, most of it having been sold with the benefit of the restrictions. The Tribunal (HH Judge Marder QC) dismissed the application saying (page 107):-
"I am satisfied that the present restrictions in preventing the building of houses on the garden land of 9 to 11 Albert Road do secure to the trustees a practical benefit of substantial advantage to them. The development of houses on back garden land would represent a departure from the standards so far maintained by the trustees, and would also weaken the confidence of residents on the estate deriving title from the trustees, in the ability of the trustees to protect their interest by the maintenance of the scheme of covenants."
In Re Chandler application was made to modify convenants which restricted the use of a large house to a single private residence to enable conversion into three dwellings and the building of a house in the grounds. The estate had been developed under a system of covenants not constituting a scheme of development. The application was refused. The member (J P C Done) said (page 517):-
"The objectors are clearly entitled to ask for the enforcement of restrictions calculated to retain the status quo, and any action which would facilitate a change would deprive them of something which they value. In this connection, the injury envisaged in the section is not limited by statute to the effect on market value; it may be related for something entirely personal and, even if a general relaxation of the restrictions would in fact facilitate the sale of properties and enhance market values, if the personal convictions and wishes of the objectors are seen to be sincere and well founded, and their objections not tinged with ulterior motive, to reject them would be injurious within the terms of the section.
I cannot in this case find anything unacceptable in the objectors' evidence. Any change would affect the character of the neighbourhood, they would resent it, and would be injured if it were allowed. It seems to me that the practical benefit which is secured to them is the power left in their hands to scrutinise and if necessary veto any proposals tending to alter the character of the neighbourhood and I do not think the Tribunal's discretion extends to depriving them of that measure of control when objections to a proposal are practically unanimous and appear to be reasonable."
"The position of the Tribunal is clear. Any application under section 84(1) must be determined upon the facts and merits of the particular case, and the Tribunal is unable to bind itself to a particular course of action in the future in a case which is not before it: see Re Ghey and Galton and Re Farmiloe. It is however legitimate in considering a particular application to have regard to the scheme of covenants as a whole and to assess the importance to the beneficiaries of maintaining the integrity of the scheme. The Tribunal has frequently adopted this approach. See for example Re Henman; Re Saviker (No.2); and Re Sheehy.
Insofar as this application would have the effect if granted of a opening a breach in a carefully maintained and outstandingly successful scheme of development, to grant the application would in my view deprive the objectors of a substantial practical benefit, namely the assurance of the integrity of the building scheme. Furthermore I see the force of the argument that erection of this house could materially alter the context in which possible future applications would be considered."
This part of Judge Marder's decision was adopted "as correct in principle" by the Privy Council in McMorris v Brown (at pages 151-2).
Section 84(1)(c) of the 1925 Act
Conclusion
PLANS RESTRICTION
DECISION
DATED 20 November 2000
(Signed P H Clarke)
ADDENDUM
DATED 12 December 2000
(Signed P H Clarke FRICS)