Federated Homes v Mill Lodge Properties [1980] 1 WLR 594

Court: Court of Appeal

Basic Facts:

• Parties: V (Vendor), M (Purchaser of land with restrictive covenant), F (Subsequent Purchaser of land from V).

• Context: M bought land from V subject to a restrictive covenant limiting development density to protect V's retained land. Later, V sold additional land to F. M threatened to breach the covenant, leading M to seek an injunction to enforce it.

Issue for the Court: When has a covenant been annexed to the land?

Held: The court ruled that restrictive covenants benefiting land could be enforceable by successors in title, provided the covenant was clearly intended to be annexed to the land.

Brightman LJ

• Annexation: The benefit of a covenant can be annexed to the land, allowing it to pass automatically with the land upon conveyance.

• Statutory Reference: Under s.78 of LPA 1925, covenants affecting land are deemed to be made with the covenantee and their successors, implying assignability.

• Conclusion: If the covenant touches and concerns the land, it is annexed to it and runs with the land unless a contrary intention is shown.