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I think covenant's that old have to have some sort of provision written into them that says subsequent owners have the right to enforce them or else they effectively become expunged by passing time.
You have to read the covenant - but the only people that can action it are the original beneficiaries of the covenant. If they are not around, then no-one to enforce.
As your neighbour is in agreement I would build it. The worst that can happen is you will have to take it down again. I had a house in the early eighties (built in the mid 70’s) with gardens that had a covenant to be kept “open plan”. 3 of us got together and built a 3 foot wall around the front garden of each property. No one ever complained.
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