Overview
Section 12 of the Party Wall etc. Act 1996 allows an adjoining owner to request security for expenses where the building owner is exercising rights under the Act.
Security for expenses is not automatic. It should be justified by the nature of the works, the risk created and the potential cost of putting matters right if something goes wrong or the works are abandoned.
Important qualification
The work must be work carried out under the Act. General building work, planning issues or ordinary inconvenience do not by themselves justify security for expenses.
The examples below may justify a request where they are notifiable and create a real risk.
1. Basement excavation
Basement works are the clearest example. Excavating near, below or beneath adjoining foundations can create significant risk.
Examples include:
- digging below an existing building to create a basement;
- underpinning;
- deep excavation close to a neighbour's foundations;
- works that require temporary support to adjoining structures.
2. Major loft conversions or roof works
Some loft works may justify security where they involve significant structural alteration to a party wall or roof structure.
Examples include:
- installing substantial beams into a party wall;
- raising a party wall;
- removing chimney breasts and installing structural support;
- works that expose the adjoining property to weather risk.
3. Large extensions or vertical additions
Large rear, side or upward extensions may justify security where they create significant structural risk or rely on substantial notifiable works.
Examples include:
- major excavations for foundations;
- work to party structures;
- temporary exposure or support of adjoining property;
- substantial changes in load affecting party structures.
4. Demolition and rebuilding
Demolition and rebuilding can create risk where structures are shared, adjoining or supporting one another.
Examples include:
- demolishing and rebuilding a party fence wall;
- removing structures tied into adjoining property;
- rebuilding defective shared structures;
- works requiring temporary support or weathering.
5. Significant structural alterations
Major structural alterations may justify security where they affect the stability or protection of adjoining property.
Examples include:
- removing load-bearing elements connected to a party structure;
- altering structural load paths affecting a party wall;
- substantial cutting away or cutting into a party structure.
6. Other high-risk notifiable works
Other works may justify security where they are notifiable and create a real financial risk. The question is not the label given to the work, but the risk and potential expense if the building owner fails to complete it properly.
How security is requested
A request for security should be made in writing before the relevant works start.
The amount can be agreed by the owners or determined by the surveyor or surveyors. It should be proportionate and evidence-based.
What security can protect against
Security for expenses can help protect the adjoining owner against costs such as:
- making the site safe;
- completing necessary protective works;
- dealing with damage caused by incomplete or defective notifiable works;
- professional fees properly arising from the issue.
Summary
Security for expenses is a powerful tool, but it should be used properly. It is most appropriate for high-risk notifiable works, especially basement works, underpinning and major structural alterations. It should not be used as a tactic to delay ordinary building work.
Email: info@coburnspartywall.co.uk
Phone: 0207 11 88 3 55
Disclaimer
This article is for general information only and is not legal advice. It is not tailored to any specific property, project or dispute.
Discover the types of notifiable residential works that may justify security for expenses under section 12 of the Party Wall Act.
Security for expenses under the Party Wall Act: when and why | Coburns Party Wall