AN APPLICATION UNDER SECTION 84 OF THE LAW OF PROPERTY ACT 1925
B e f o r e :
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BEECHES CAPITAL |
Applicant |
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- and - |
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ALISON HUNT AND OTHERS (AS PERSONAL REPRESENTATIVES OF THE ESTATEOF MARGARET ADELINE HUNT) |
Objectors |
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Beeches Farm, Icknield Way, Tring, Hertfordshire HP23 4LA |
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Mr Richard Power, instructed by Allan Janes LLP, for the objectors
23-24 October 2024
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Crown Copyright ©
RESTRICTIVE COVENANT – DISCHARGE OR MODIFICATION – planning consent for demolition of redundant agricultural buildings and erection of modern office unit – restriction preventing erection of buildings other than those designed for and to be used for agricultural purposes – whether restriction secures practical benefit through enjoyment of amenity in a field – application for modification granted with compensation
The following cases are referred to in this decision:
Blue Angel Properties Ltd v Jenner [2020] UKUT 360 (LC)
Re Fermyn Wood [2018] UKUT 411 (LC)
Introduction
Factual background
The properties and the restriction
"3. FOR the benefit and protection of the adjoining and neighbouring land now held by the Vendor and edged green on the plan attached hereto and so as to bind the land hereby conveyed into whosesoever hands the same may come the Purchasers jointly and severally covenant with the Vendor that the Purchasers and those deriving title under them will at all times here after observe and perform the following conditions –
(I) (a) Not at any time hereafter to erect any building or erection of any kind whatsoever on the land coloured pink on the said plan other than fences and gates and (b) Not to erect any building or structure upon the land coloured blue on the said plan other than (i) buildings designed and to be used for agricultural purposes and being of a height of not more than seven feet to the eaves and twelve feet to the ridge and (ii) not more than one private bungalow or private dwellinghouse built to plans previously approved by the Vendor or his Surveyor in writing the fees of such Surveyor being paid by the Purchasers such approval not to be unreasonably withheld
…"
History of non-agricultural use and planning consents
1999 | Egg farm business ceased. Shed A partially converted to offices and meeting rooms, with the installation of windows and provision of a new light grey metal roof. Remainder of shed A used for archival file storage. |
2005 | Office use of shed A ceased following unsuccessful application and appeal for retrospective permission, refused principally on highways grounds. |
2006 | The Dean family business merged with another egg production and packing company to form Noble Foods. |
2009 | Exploratory correspondence between Peter Dean and Don Hunt regarding proposed improvement of a shared access at the south west corner of Beeches Farm and potential release of the covenant to regularise non-agricultural use |
2016 | Noble Foods IT team moved into the offices in shed A. The Dean family office moved into new office space created in the former storage area in shed A. Those occupations have continued to the present day. |
2019 - 2022 | Applications to achieve lawful development certificate for storage use in shed B and part of shed A, change of use from storage to flexible business use under class B8, together with retention of office use in part of shed A. |
25 May 2022 (22/01238/APP) |
Planning approval for demolition of redundant buildings and external works to sheds A, B and D to provide replacement roofs, in black finish with rooflights in the ridge, and full height windows between sections of black stained larch cladding. Known as "the conversion scheme". |
18 Oct 2022 (22/02399/APP) |
Planning permission for scheme of demolition and redevelopment to form rural enterprise and business hub (use class E) comprising two single storey office/business units which in part exceed the covenanted height restrictions, with single storey link building. Known as "the redevelopment scheme". |
Jul – Dec 2023 | Approval of non-material amendments and discharge of surface water and lighting conditions relating to the redevelopment scheme. |
April 2024 | Permission for new access to Beeches Farm from the main road. |
Legal background
The application and agreed matters
The redevelopment scheme
The conversion scheme
Submissions
The objection
"25. …Crucially therefore, if the covenants, in preventing the proposed development, give Mrs Jenner any practical benefits of substantial value or advantage, then they cannot be discharged or modified. If they do not, then they can be discharged or modified only if the applicant can show that money will be an adequate compensation for any loss she will suffer from that discharge or modification."
"133. In case we are wrong about that, we would add that the practical benefits of the covenants in preventing the proposed development, to Mrs Jenner – and specifically to Mrs Jenner who has lived here for decades and raised her family here – could not be compensated by money."
The evidence on amenity
For the applicant
For the objectors
Discussion
Ground (a) - obsolescence
"35. In determining whether the 1929 covenant can be discharged under ground (a) it is therefore necessary to consider a number of connected matters. It is first necessary to identify the purpose or object of the covenant, which may be stated in the instrument imposing the restriction or may be inferred from the nature of the restriction or from the known circumstances. Next it is necessary to ask whether the character of the property or the neighbourhood has changed since the covenant was imposed. Thirdly, whether the restriction has become obsolete by reason of those changes, in the sense that the object for which the restriction was imposed can no longer be achieved. Fourthly, and finally, whether some material circumstance other than a change in the character of the property or the neighbourhood has had that effect."
Ground (aa) – Whether in impeding a reasonable use the restriction secures practical benefits to the objectors and, if so, whether money will be an adequate compensation for their loss
Determination
The restrictions in the Charges Register for the property known as Beeches Bungalow, Icknield Way, Tring (Title BM448089) shall be modified under section 84(1)(aa) of the Law of Property Act 1925 by the insertion of the following words:
"PROVIDED that the development permitted under the grant of planning permission on 18 October 2022 by Buckinghamshire Council under reference 22/02399/APP and subject to the conditions attached thereto may be implemented in accordance with the terms, details and approved drawings referred to therein. Reference to the above planning permission shall include any subsequent planning permission that is a renewal of that planning permission, any non-material amendments that are approved and any other matters approved in satisfaction of the conditions thereto."
1. Signified its acceptance of the proposed modification of the restriction in the Charges Register of the Property; and
2. Provided evidence that the sum of £15,000 has been paid to and received by solicitors acting for the Estate of Margaret Adeline Hunt.
Mrs Diane Martin, TD, MRICS, FAAV
20 December 2024
Right of appeal
Any party has a right of appeal to the Court of Appeal on any point of law arising from this decision. The right of appeal may be exercised only with permission. An application for permission to appeal to the Court of Appeal must be sent or delivered to the Tribunal so that it is received within 1 month after the date on which this decision is sent to the parties (unless an application for costs is made, in which case an application for permission to appeal must be made within 1 month of the date on which the Tribunal's decision on costs is sent to the parties). An application for permission to appeal must identify the decision of the Tribunal to which it relates, identify the alleged error or errors of law in the decision, and state the result the party making the application is seeking. If the Tribunal refuses permission to appeal a further application may then be made to the Court of Appeal for permission.