Why Commercial Property Investors Should Check Title Restrictions and Rights of Way Before Buying

Owning the building doesn’t always mean you can use every part of it exactly as you want

A commercial property can appear perfect during a viewing.

The warehouse is the right size. The yard is generous. Vehicle access looks straightforward. The location works, and the numbers stack up.

But the legal title may reveal something that isn’t obvious on site.

Another property owner may have a right to cross the yard. A neighbouring business may have rights to use an access road. Part of the site may be subject to a restrictive covenant affecting development or use.

For commercial property investors, these details can materially influence value, development potential and future lettings.

At Citrus Commercial Circle, we believe investors across Bury, North Manchester and the wider North West should understand not only the physical boundaries of a commercial property, but also the legal rights and restrictions attached to it.

What is a commercial property’s title?

The title records important legal information relating to ownership of land and property.

Depending on the property, title documentation may contain information about:

• Ownership
• Property boundaries
• Rights benefiting the property
• Rights benefiting neighbouring land
• Restrictive covenants
• Access arrangements
• Other legal interests

In England and Wales, registered property information is maintained by HM Land Registry.

The title should be professionally reviewed by the buyer’s solicitor as part of acquisition due diligence.

Why is title due diligence important?

The physical appearance of a property does not necessarily reveal the complete legal position.

Imagine purchasing an industrial site with a large yard.

You intend to:

• Install fencing
• Create additional parking
• Introduce security gates
• Develop part of the yard

But after reviewing the title, you discover that neighbouring occupiers have legal rights to pass across part of that land.

Your plans may suddenly become considerably more complicated.

Understanding these matters before completion is essential.

What is a right of way?

A right of way generally allows someone to travel over land owned by another party.

In commercial property, rights of way are extremely common.

They might allow neighbouring businesses to:

• Drive across an estate road
• Walk through part of a site
• Access rear premises
• Reach loading areas

A property can therefore be privately owned while still being subject to legitimate third-party access.

Shared access roads are common on industrial estates

Many established industrial estates have evolved over decades.

Buildings may have been:

• Sold separately
• Subdivided
• Extended
• Reconfigured

As ownership becomes fragmented, access rights can become increasingly important.

One landlord may own the estate road while several neighbouring owners have rights to use it.

Investors need to understand exactly who can use shared areas and for what purpose.

Access can directly affect investment value

For commercial property, good access is fundamental.

A warehouse without reliable vehicle access may have significantly reduced occupational appeal.

Investors should establish whether access is:

• Directly owned
• Shared
• Subject to rights
• Dependent on neighbouring land

The stronger and clearer the access position, the easier the property may be to operate and eventually sell.

Don’t assume an access road is adopted

A road may look like a normal public highway while actually being privately maintained.

This can create questions around:

• Repair responsibility
• Resurfacing costs
• Drainage
• Lighting
• Winter maintenance

Investors should establish whether the road is publicly adopted or privately maintained.

If it is private, the title and other documentation should clarify responsibilities where possible.

Maintenance obligations can become expensive

Imagine several commercial properties share a private road.

Who pays when it needs resurfacing?

The answer might depend on historic deeds or title provisions.

Costs may be divided:

• Equally
• By percentage
• According to use
• Through another mechanism

If the documentation is unclear, disputes can arise.

For an investor, this represents both financial and management risk.

Rights of way can restrict security measures

Security is increasingly important to industrial occupiers.

An investor may want to install:

• Gates
• Barriers
• Fencing
• Access controls

But if neighbouring owners have rights across the land, unrestricted gate installation may not be straightforward.

The rights of others must be respected.

Legal advice should therefore be obtained before altering shared access arrangements.

HGV access deserves particular attention

A right of way may exist, but investors should still understand its extent.

For an industrial property, the ability to accommodate commercial vehicles can be essential.

Questions might include:

• Does the right allow vehicles?
• Are there width limitations?
• Can HGVs realistically manoeuvre?
• Are there physical restrictions?

A technically valid access that is impractical for modern commercial vehicles may still reduce occupational demand.

What are restrictive covenants?

Restrictive covenants can limit how land or buildings may be used.

Depending on the wording and enforceability, a covenant might potentially restrict:

• Certain business activities
• Development
• Building alterations
• External storage
• Particular structures

These restrictions are separate from planning permission.

This distinction is extremely important.

Planning permission doesn’t necessarily override private restrictions

Suppose an investor obtains planning permission to develop part of a commercial site.

That does not automatically mean a restrictive covenant affecting the land disappears.

Planning law and private property rights are separate matters.

Investors should therefore avoid assuming:

“If planning is granted, I can definitely build it.”

Legal title due diligence remains essential.

Covenants can be very old

Some commercial titles contain covenants created many decades ago.

Their age does not necessarily mean they can simply be ignored.

The practical significance depends on factors including:

• Exact wording
• Who may benefit
• Whether the covenant remains enforceable
• The proposed activity

These are legal questions requiring professional advice.

Rights can also benefit the property

Title matters are not always negative.

A commercial property may benefit from valuable rights over neighbouring land.

Examples could include rights to:

• Use an access road
• Connect into services
• Use drainage
• Enter neighbouring land for maintenance

These rights can be extremely important to the property’s functionality.

Investors should therefore understand both the benefits and burdens contained within the title.

Service rights are easy to overlook

Commercial buildings depend on infrastructure.

Utilities may cross neighbouring land before reaching the property.

Relevant services can include:

• Electricity
• Water
• Gas
• Drainage
• Telecommunications

Investors should establish whether appropriate rights exist for these services and, where relevant, access for repair or maintenance.

Drainage rights can become particularly important

Older commercial estates may have shared drainage networks.

A drain serving your property could run beneath another owner’s land.

If the pipe fails, can you legally access it for repairs?

Questions like this may seem minor during acquisition.

They become extremely important when something goes wrong.

Boundary positions should be understood

Industrial sites often contain:

• Fences
• Walls
• Yards
• Parking areas

The physical boundary on site may not always correspond exactly with what an investor assumes they are purchasing.

Title plans generally show boundaries for registration purposes, but boundary interpretation can require professional advice.

Investors with development or fencing plans should investigate carefully.

Parking rights can affect lettability

Parking is one of the most common requirements from commercial occupiers.

Some properties have parking spaces included within their ownership.

Others rely on rights to park elsewhere.

This distinction matters.

A tenant may be less comfortable committing to premises where essential parking arrangements are uncertain.

Investors should establish exactly what parking is legally available.

Informal arrangements can create risk

Sometimes businesses have used neighbouring land for years without a clearly documented arrangement.

Examples might include:

• Overflow parking
• Turning vehicles
• Loading
• Bin storage

Investors should not automatically assume that longstanding informal use provides permanent rights.

Legal advice should establish the actual position.

Yard areas deserve detailed investigation

External areas can represent a significant part of an industrial property’s value.

Investors may use yards for:

• Parking
• Loading
• Containers
• External storage
• Future development

Any third-party rights affecting the yard could materially influence these plans.

A large yard is only as useful as the rights attached to it allow.

Development sites need particularly careful title review

For development investors, title restrictions can fundamentally affect viability.

Before purchasing land, buyers should investigate:

• Access
• Covenants
• Easements
• Service rights
• Boundaries

A site may have excellent planning potential but still face legal constraints that make development difficult or expensive.

Title due diligence should therefore take place early.

Title problems can influence finance

Commercial lenders also need confidence that the property provides suitable security.

Issues affecting:

• Access
• Marketability
• Development
• Use

may therefore be relevant to lending decisions.

A significant title defect could potentially affect valuation or finance terms.

Investors using borrowing should identify these matters as early as possible.

Title insurance may sometimes be considered

In certain circumstances, specialist legal advisers may discuss indemnity insurance where a particular title risk exists.

Whether insurance is appropriate depends entirely on the individual issue.

It should not be viewed as a universal solution.

Investors should follow professional legal advice rather than attempting to arrange title-risk solutions independently.

Neighbour disputes can damage investment performance

Unclear rights can create disputes.

Examples might involve:

• Blocked access
• Parking
• Maintenance contributions
• Gates
• Deliveries
• Drainage

Even where an investor ultimately has the stronger legal position, disputes can consume time and money.

Clear documentation is therefore valuable.

Multi-let estates need especially clear rights

Commercial estates often involve a mixture of:

• Landlord-owned roads
• Tenant parking
• Shared yards
• Service routes
• Fire access

The more occupiers and ownership interests involved, the more important clear rights become.

Investors should understand how the estate functions legally as well as physically.

Fire access should never be compromised

Access areas may also be required for emergency services or escape routes.

Parking or development plans should therefore consider fire safety requirements as well as property rights.

The Health and Safety Executive provides workplace health and safety information, while property-specific fire safety requirements should be assessed by competent professionals.

Good title can support future flexibility

A property with:

• Strong access
• Clear boundaries
• Appropriate service rights
• Minimal restrictive covenants

may provide investors with greater flexibility.

That flexibility can support:

• Reletting
• Refinancing
• Development
• Future sale

Legal fundamentals therefore contribute to long-term investment resilience.

Solicitors play a crucial role

Commercial property title documentation can be complex.

The buyer’s solicitor should investigate the legal title and explain material issues before exchange or completion.

The Law Society of England and Wales provides information for finding appropriately qualified solicitors.

Investors should ask questions where rights or restrictions could affect their intended strategy.

Surveyors can help interpret the physical position

Legal title review and physical property inspection work together.

A solicitor might identify a right of way on the title.

A surveyor can help assess what that means physically on the site.

Professional organisations such as the Royal Institution of Chartered Surveyors (RICS) provide information relating to qualified property professionals.

North Manchester has significant established commercial stock

Bury and North Manchester contain many commercial estates that have evolved over long periods.

Some sites have been divided between different owners or extended several times.

This makes access, boundaries and shared infrastructure particularly important considerations.

Older commercial property can provide excellent investment opportunities, but historic legal arrangements need to be understood.

Citrus Commercial Circle’s market insight

At Citrus Commercial Circle, we encourage investors to look beyond what they can physically see during a viewing.

A commercial property might have an impressive yard.

But:

Who else can cross it?

A property may have excellent access.

But:

Do you legally own or benefit from that access?

A site may appear capable of extension.

But:

Are there restrictions affecting development?

These questions can materially change an investment.

Final thoughts

Commercial property investment isn’t simply about buying a building.

You are acquiring a package of land, rights, restrictions and responsibilities.

Rights of way, restrictive covenants, service rights, parking arrangements and boundaries can all influence how a property can be occupied, developed and eventually sold.

Understanding them before purchase helps investors avoid surprises and identify assets with genuine long-term flexibility.

At Citrus Commercial Circle, we are proud to help landlords and investors across Bury and North Manchester identify commercial property opportunities with strong underlying fundamentals and long-term potential.

Based in Bury. Active across North Manchester. Always on your side.

Call us today: 0161 383 1806

Email: info@citruscommercialcircle.co.uk

Visit: citruscommercialcircle.co.uk

Let’s unlock the full potential together.

Citrus Commercial Circle – Where standards meet success.