Property sale with restrictions

The landlord (a ltd company) of a commercial property wishes to sell it to the present tenant, who wants to buy it. But part of the land at one side of the commercial building would make a good residential property site if sold off separately. The landlord does not want this parcel of land to be developed and wishes to place some sort of restriction - in perpetuity - that this land cannot be developed, in case the new owner decides to either sell it off separately or sell the whole lot to another owner who then tries to sell the land off.

Has anyone got any ideas that they might offer as to how a workable restriction might be arranged? One idea would be for the ltd co to retain ownership of the parcel and continue to lease it to the owner at the time of the main bit in order to retain control, but this is not ideal because the ltd co would have to remain in existence for ever and does not particularly want to. Another way might be to place a covenant in the terms of the sale prohibiting development, but some smart-ass always finds a way round this sort of thing.

Thanks if you have any ideas.

Rob Graham

Reply to
Robin Graham
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Transliteration

The landlord (a ltd company) of a commercial property wishes to sell it to the present tenant, who wants to buy it. But part of the land at one side of the commercial building would make a good residential property site if sold off separately. The landlord does not want this parcel of land to be developed and wishes to place some sort of restriction - in perpetuity - that this land cannot be developed, in case the new owner decides to either sell it off separately or sell the whole lot to another owner who then tries to sell the land off.

Has anyone got any ideas that they might offer as to how a workable restriction might be arranged? One idea would be for the ltd co to retain ownership of the parcel and continue to lease it to the owner at the time of the main bit in order to retain control, but this is not ideal because the ltd co would have to remain in existence for ever and does not particularly want to. Another way might be to place a covenant in the terms of the sale prohibiting development, but some smart-ass always finds a way round this sort of thing.

Thanks if you have any ideas.

Rob Graham

Reply to
Robin Graham

I once sold a house with an additional sale term that an extra 100k was to be paid if the land was used for more than a single family dwelling at any time over the next 21 years. It's all on the land charges register. Unfortunately, so far they have only used it as a single family dwelling, but I've got my fingers crossed.

Reply to
GB

If the current owner is selling the property what benefit would it achieve by preventing part of the land being developed in some way?

jb

Reply to
Jeremy Barker

Rob

I once heard of a piece of land being sold but the shooting rights being held i.e. the original owner held the rights to go on the land and shoot game as and when they pleased. This was in the country so wasn't considered unusual. I also once heard of drilling rights being held i.e. the right to drill for oil on the land again as and when they pleased. I don't know if these were just urban myths or if there was any mileage in them but perhaps there are some rights that either force the land to remain undeveloped or at least mke it very difficult to build on it i.e. the right to farm???

Hope this helps, let us know the resolution.

WC

Reply to
Wildcard

Thanks for your ideas. We'll have to wait and see what happens.

Rob

Reply to
Robin Graham

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