Earl Kendrick’s licence to alter and party wall teams are busy helping landlords and managing agents with apartment alterations.
Coronavirus lockdowns have led to more homeworking and consequently more demand for internal configuration changes to apartments. On top of this trend, we are still seeing plenty of leaseholders altering their apartments purely to capitalise on value created by such changes.
Either way, the level of sophistication of those changes comes hand in hand with an increase in project complexity and the increased likelihood of the dual requirements of licence to alter and the serving of notices under the Party Wall etc Act 1996.
As property managers, freeholders and RMC directors, you have a responsibility to ensure that consents are considered in line with the lease and the impact of the proposed works on the rest of the building.
It is the latter part which drives the need – in many cases – for the appointment of party wall surveyors.
Bearing in mind the complexity and sophistication of many alterations, you may be surprised to hear that the licence to alter process is not governed by law. But the party wall requirements are.
We suspect many reading this will have been involved in a licence to alter process, as an RMC director, property manager or building surveyor, and you may not have considered the words ‘party wall’. If this is you, read on.
Party Wall Jargon Buster
Firstly, some clarification on the word “wall” which can be misleading, as the Party Wall etc. Act 1996 applies also to the floor or ceiling (horizontal structures) separating two apartments or between an apartment and the common parts, hence the term “etc” in the title of the Act.
As part of their project, if a leaseholder is undertaking work that is notifiable under the Act – e.g. cutting into a wall, floor or ceiling that is shared with another party – party wall notices will be required (a statutory requirement) and a Party Wall Award drawn up.
Some more terminology to learn: The leaseholder undertaking the work is known somewhat confusingly as the “Building Owner” under the Act. The “Building Owner” has the obligation to serve prescribed notices on the “Adjoining Owners”, who are the neighbours in close proximity.
Therefore, if party walls are involved in the works, the “Building Owner” appoints a surveyor to prepare and serve party wall notices on those “Adjoining Owners” concerned.
The “Adjoining Owners” will either ‘consent’ to the works, meaning that they are happy for the works to proceed without a formal Party Wall Award, or they may ‘dissent’ to the works, meaning that they do require a formal Party Wall Award to be drawn up between the “Building Owner“ and them. The Party Wall Award sets out the terms under which the work can proceed.
Who can confirm whether or not Party Wall Notices are needed?
In the same way that you will look to your chosen surveyor to ascertain if a licence to alter is required, you can turn to them for advice on party walls too.
What are the timings for Party Wall Notices?
When a party wall notice is served by the leaseholder wishing to undertake notifiable works, the adjoining leaseholder (and the landlord/freeholder, if the common parts are affected) have 14 days in which to respond.
If they do not respond within 14 days, the leaseholder will serve a 10-day notice requiring a response within that new timescale. If the adjoining leaseholder and/or landlord still do not respond, the leaseholder wishing to undertake the works can go ahead and appoint a surveyor on their neighbours’ behalf.
In the event that this happens, the adjoining leaseholder and/or landlord will have no control over the appointment of the surveyor acting for them.
Whilst this may not lead to any adverse consequences, the landlord will likely be displeased that their managing agent failed to follow the right procedure to protect their interests.
Seek out the experts
Some managing agents – and even some surveyors – are mistaken in the belief that party wall Notices/a Party Wall Award are not needed if a licence to alter is in place. This is categorically incorrect.
Neither managing agents nor surveyors will be thanked if the requirement to serve party wall Notices has been missed. This could lead to complicated claims and potential negligence issues.
We’re just a phone call away.
Julian Davies is Group Managing Director at EK McQuade, Party Wall Specialists