Statutory annexation

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When a Covenant relating to land is made between two parties, and those parties both sell their interests in their land, then in order for the owner of the benefited land to enforce the covenant against the owner of the burdened land, he will typically have to show that the covenant is 'annexed' to the land. Alternative approaches are to show that the covenant is abuilding scheme covenant, or show that the benefit of the covenant has been expressly assigned to him.

There were complicated rules concerning annexation of covenants, but federated homes v mill lodge (1980) has held that s.78 of the Lpa (1925) creates a form of 'statutory annexation'. In effect, any covenant that is 'related to any land' of the covenantee is 'annexed' to that land. FederatedHomes has been criticised, but it does make it easier for a claimant to enforce a covenant when the original covenantor has moved on.

Land and Property Law