University of East London Higher Education Corporation v London Borough of Barking & Dagenham & Ors [2004] EWHC 2710 (Ch) (09 December 2004)

University of East London Higher Education Corporation v London Borough of Barking & Dagenham & Ors [2004] EWHC 2710 (Ch) (09 December 2004)

The restrictive covenants and pre-emption rights in the conveyances are valid and subsisting; the benefit is vested in LBBD and LBR as statutory successors, and the burden falls on UEL. UEL may sell the Barking Campus free of the restrictive covenants, but must first offer it to LBBD and LBR under the pre-emption covenant at full market value free from the covenants. Unity of seisin did not extinguish the covenants because the properties were held for different statutory purposes.

Citation
[2004] EWHC 2710 (Ch)
Parties
Claimant: University of East London Higher Education Corporation; First Defendant: London Borough of Barking and Dagenham; Second Defendant: London Borough of Redbridge; Third Defendants: Persons unknown owning or occupying property forming part of the Becontree Estate, East London
Jurisdiction
England and Wales
Judgment Date
09 December 2004
Procedural Posture
Chancery Division Property/restrictive Covenants / Judgment After Trial
Outcome
Covenants valid and enforceable; UEL may sell subject to pre-emption right; benefit and burden as determined.
Legal Topics
Restrictive Covenants, Statutory Vesting, Pre Emption Rights, Unity of Seisin, Annexation of Covenants
Property Law Local Government Law Restrictive Covenants Statutory Vesting Pre Emption Rights Unity of Seisin Annexation of Covenants

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Parties

University of East London Higher Education Corporation

Claimant

London Borough of Barking and Dagenham

First Defendant

London Borough of Redbridge

Second Defendant

Persons unknown owning or occupying property forming part of the Becontree Estate, East London

Third Defendants

Procedural Posture

Chancery Division Property/restrictive Covenants / Judgment After Trial

Legal Issues

  1. 1 Whether restrictive covenants and pre-emption rights in historic conveyances remain valid and enforceable against the current owner of the Barking Campus;
  2. 2 Who is entitled to the benefit and burden of the covenants;
  3. 3 Whether the covenants are extinguished by unity of seisin;

Ratio Decidendi

The restrictive covenants and pre-emption rights in the conveyances are valid and subsisting; the benefit is vested in LBBD and LBR as statutory successors, and the burden falls on UEL. UEL may sell the Barking Campus free of the restrictive covenants, but must first offer it to LBBD and LBR under the pre-emption covenant at full market value free from the covenants. Unity of seisin did not extinguish the covenants because the properties were held for different statutory purposes.

Court Disposition

Covenants valid and enforceable; UEL may sell subject to pre-emption right; benefit and burden as determined.

Orders

  • UEL is free to sell the Barking Campus for its full market value free of the restrictive covenants, but must first offer it to LBBD and LBR under the pre-emption covenant.
  • If LBBD and LBR exercise the right of pre-emption, they must pay the full market price for the Barking Campus free from the restrictive covenants.