We are proud to have acted in a successful High Court covenant modification application for Auckland developers, paving the way for development in Drury.

Despite new planning rules permitting more intensive land use, many developers are finding projects hamstrung by redundant or outdated land covenants or easements that limit the development or subdivision of otherwise prime development land.

Litigation Partner Nicky Hall and Senior Solicitor Abe Trask-Coombs succeeded in obtaining court orders removing one such land covenant over our clients’ properties in Drury, Auckland.

Background

The land covenant was registered when the surrounding area consisted of lifestyle blocks lying outside the Metropolitan Urban Limit. It imposed limitations on building design, construction materials, and permissible types of development.

The area is now ripe for development, with a landscape of paddocks making way for thousands of houses. The removal of the covenant from our clients’ properties will pave the way for higher-density residential development in line with the area’s new urban zoning.

Land covenants are widespread across New Zealand and were frequently registered in historically rural neighbourhoods to maintain their character or limit further subdivision. But many of those areas have transitioned away from lifestyle blocks and farms to established town centres (think Auckland’s Pukekohe, Silverdale and Kumeu, Tauranga’s Papamoa, Christchurch’s Rolleston, Queenstown’s Frankton). Unlike town planning controls, land covenants are often fixed in perpetuity – meaning the only way to remove them is through the Courts or negotiation with neighbouring landowners. As land covenants run with the land, further subdivision can greatly increase the number of landowners whose consent is required, making negotiation difficult. 

An emerging trend

We have seen a rapid increase in the number of developers and landowners going to Court to successfully remove land covenants to take advantage of their land’s full potential. Our experience suggests Courts are becoming more open to removing land covenants that would otherwise restrict development. Increasing pressure on land use and availability means that trend is likely to continue.

This new High Court decision demonstrates the opportunities available to developers and landowners to overcome land covenants that no longer align with the more relaxed urban planning rules introduced in recent years.

If you own or are looking to purchase land burdened by a land covenant, get in touch with one of our experts to discuss your options to make the most of your land by increasing its development potential or saleability.
We have experience in negotiating the removal of land covenants and can provide strategic advice on obtaining consent from difficult or large numbers of landowners and the likelihood of having the restrictions lifted through the Courts.

Special thanks to Claudia Paterson and Abe Trask-Coombs for their assistance in writing this article.