From: "Robin Graham" 
Newsgroups: uk.finance
Subject: Property sale with restrictions
Date: Thu, 11 Nov 2004 15:33:59 +0000 (UTC)

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