Modification of Restrictive Covenants: Calculating Compensation Under s 84(1)(ii) Law of the Property Act 1925

    View Author August 2020
    Where the Tribunal makes an order to discharge or modify a restrictive covenant under s 84 Law of the Property Act 1925 (LPA 1925), it may direct that compensation be payable under one of two heads. The second head, as set out at s 84(1)(ii) LPA 1925, is compensation to make up for any effect that the restrictive covenant had at the time when it was imposed in reducing the consideration received for the burdened land. How to calculate compensation under s 84(1)(ii) and who is entitled to such compensation was considered in Neil Sheppard v (1) Martin Grant Holdings Limited and (2) Roger Turner [2020] UKUT 171 (LC).