Party Wall enclosure costs are the sum of money the building owner must pay an adjoining owner for the use of a Party Wall, an adjoining owner built.
We find most building owners are unaware this payment is applicable until informed by Party Wall Surveyors.
To Understand this point, we must look at the wording of the Party Wall etc Act 1996.
Section 11(11) of the Party Wall etc Act 1996 Confirms:
“Where use is subsequently made by the adjoining owner of work carried out solely at the expense of the building owner, the adjoining owner shall pay a due proportion of the expenses incurred by the building owner in carrying out that work; and for this purpose, he shall be taken to have incurred expenses calculated by reference to what the cost of the work would be if it were carried out at the time when that subsequent use is made”.
I have created a hypothetical situation, in order to assist with my explanation
The owner (A) hereafter known as the building owner, built a rear extension astride the line of junction 2 years ago using London stock brickwork.
The owner (B) hereafter known as the adjoining owner, (lives next door to the building owner) and intends to build a rear extension.
The adjoining owner does research and speaks to a party wall surveyor, who then serves a Party Wall Notice upon the building owner.
The building owner then dissents to the notice, appointing his own party wall surveyor to protect his interests.
The building owner surveyor then informs the adjoining owner's surveyor that when the adjoining owner encloses onto the party wall, there will be an enclosure cost due to the building owner. The cost will be 50% to build the wall at today’s construction rates.
Section 11(11) of the Party Wall etc Act 1996 is a section that most are unaware of unless they have experience.
The Section 11(11) Enclosure Cost Includes:
- Foundation costs, i.e. digging and laying them
- Soil removal from site
- Materials required to build the wall
- Contractor’s labor to construct the wall
- Professional fees
- Location Rates
The costs to build the entire wall are calculated. This cost is then divided by two, forming the cost due from the building owner to the adjoining owner for the enclosure onto the party wall.
Irrespective of when an owner built a party wall, the cost that the adjoining owner pays will always be at the current day construction rates. This is based upon the owner benefiting from the wall today, not when it was built, with this in mind will have to pay the cost at today’s rates.
Party Wall Enclosure Costs can cause disputes between both owners and Party Wall Surveyors arguing over everything from labour cost to the price of a brick.
If you plan to enclose on a party wall, or are having your party wall enclosed upon. We suggest speaking to a Party Wall Surveyor in the first instance to seek further advice.
Here at Icon Surveyors, our Party Wall Team are both Qualified and experienced in party wall enclosure costs, we have undertaken appointments with enclosure costs ranging from a few hundred pounds to tens of thousands of pounds.
If you would like to discuss these Enclosure Costs or any other party wall surveyor costs, call our Party Wall Team now on 020 7493 9087 and one of our experienced party wall surveyors will happily assist.