Rights and Restrictions Over Land: Unlocking and Protecting Value
By Will Griffiths, Associate
Rights and restrictions over land, such as restrictive covenants, easements, and access rights, are a common feature of property ownership. Created to regulate the use and enjoyment of land, they can have a significant impact on how land is used, developed, and ultimately valued. While many continue to serve their original purpose, others may reflect circumstances that have since changed, meaning they are no longer required or no longer provide the intended benefit.
These constraints can either limit development or create opportunities for landowners who control them. Understanding their role and their value is key to making informed decisions.
Why They Matter
Whether benefiting from a right or being subject to one, these constraints often become critical where land has development potential. They can:
- Prevent or delay development, even where planning permission exists
- Restrict layout, density, or access
- Reduce land value by constraining its optimal use
- Create “ransom” situations where value is unlocked only through agreement
Equally, for those who control access or benefit from a restriction, these rights can represent an opportunity, particularly where their release or grant enables development.
Valuing Rights and Restrictions
Assuming the right or restriction is no longer required, a key question in these situations is:
What value is created by granting, modifying, or removing the constraint?
This is typically assessed by comparing:
- The value of the land in its current constrained position, and
- The value once the right is granted or the restriction is lifted
The difference represents the uplift in value.
In practice, agreements are often based on a share of this uplift, reflecting:
- The importance of the right or restriction to the development
- The availability (or absence) of alternatives
- The dependency of the development on its release or grant
- Market precedent and established valuation principles
Case Study: Removal of a Restrictive Covenant
We were instructed by a client who had been approached by a neighbouring landowner seeking the removal of a restrictive covenant affecting a 0.3-acre parcel of agricultural land in Cheshire.
The covenant prevented development on the site. Although planning permission had been granted, the restriction limited delivery of the scheme and reduced the site’s value.
Our Approach
We assessed:
- The site’s value in its current constrained position
- Its value assuming the covenant was removed
This allowed us to isolate the uplift directly attributable to its release.
Outcome
We identified a clear increase in value and advised that a proportion of the uplift should form the basis of any payment. Applying the principles established in Stokes v Cambridge Corporation [1961], a 33% share of the uplift in value was adopted as a benchmark, providing a robust and defensible basis for negotiations.
A settlement was ultimately reached on this basis, reflecting a 33% share of the uplift between the land’s agricultural value and its development value unlocked by the release of the restriction. This resulted in a settlement worth several hundred thousand pounds and brought the matter to a successful conclusion.
Key Insight
The value of rights and restrictions often lies not in the land they affect, but in the development potential they control or unlock.
Get in Touch
Whether you are:
- Looking to unlock land affected by a restriction, or
- Being asked to grant or release rights over your land
It is essential to understand the value implications before entering negotiations.
We would be happy to discuss your situation and help you achieve the best possible outcome.
Contact us on 01606 523 030 or email northwich@bellingram.co.uk
Article posted on 30/03/2026








