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Covenant definition

What does Covenant mean? A covenant is a binding promise in a contract or deed that imposes an obligation or restriction. In UK and Irish practice the term is used across contexts rather than being defined by statute; its content and enforceability derive from the instrument and case law. Debt capital markets: bond covenants are undertakings in the terms and trust deed that protect bondholders, typically including negative pledge, restrictions on disposals, distributions or incurring debt, information undertakings and financial covenants (maintenance or incurrence). Breach usually constitutes an event of default, with enforcement by the trustee on behalf of holders. Pensions: the employer covenant means...

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Conservation covenants in England: creation, responsible bodies, obligations, enforcement, modification and discharge, and registration under the Environment Act 2021

Practice notes
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What are conservation Covenants?

In essence, conservation covenants are voluntary, private undertakings between a landholder and a responsible organisation or body, for example a conservation Charity or a public authority. Their purpose is to safeguard the natural Environment and heritage assets for the benefit of the public at large. They stipulate duties tied to the land itself and bind present and future owners, offering the prospect of enduring conservation outcomes and benefits. A common illustration is a farmer committing to manage a woodland and permit public access, with oversight by a local woodland charity or similar body. They are viewed as complementing statutory or policy-led designations—such as Sites of Special Scientific Interest or National Parks—by enabling the private protection of land with conservation merit that sits outside the public designation regime. Part 7 of the Environment Act 2021 (EA 2021) addresses conservation covenants directly. The Department for Environment, Food & Rural Affairs (Defra) has issued guidance on obtaining and using a conservation covenant Agreement (the Defra Guidance).

Conservation covenant agreements

Section 117 of the EA 2021 introduces conservation covenant agreements. These are agreements that contain conservation covenants, entered into between landowners...

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Web page updated on 21/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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