At Simple Survey, we frequently receive queries regarding which parties need to be served Party Wall Notices when a neighbouring property is split between a freeholder and one or more leaseholders. In this article, we clarify these roles and guide you through the process of serving notices to ensure compliance with the Party Wall etc. Act 1996.
Who is a Freeholder?
A freeholder is the individual or organisation that owns the land and property outright. This means they hold the full legal title to both the building and the land it’s built on. In many cases, especially in larger buildings or blocks of flats, the freeholder may not necessarily reside in the property but still has legal control over the structure and land.
Who is a Leaseholder?
A leaseholder, on the other hand, is an individual who holds a lease agreement with the freeholder, giving them the right to occupy and use the property for a specified number of years, decades, or even centuries, depending on the terms of the lease. At the end of the lease term, the freeholder regains full ownership, unless the leaseholder negotiates an extension or purchase of the freehold.
Who Should I Serve Party Wall Notices To?
The Party Wall etc. Act 1996 requires that Party Wall Notices be served on all owners of a neighbouring property. This means that if the neighbouring property has both a freeholder and leaseholders, you must ensure that both are served with a Notice. Both are legally considered Adjoining Owners under the Act, so their consent is necessary to proceed with the works.
How to Ensure Notices Are Served Correctly
To ensure you are serving the correct party, your Party Wall surveyor will investigate the ownership details of the neighbouring property. This is done by obtaining the relevant information from the HM Land Registry, which holds official records of land ownership across England and Wales.
The surveyor will confirm whether the property has a freeholder and/or leaseholder, and will make sure that all the relevant individuals are correctly notified. This way, the Party Wall Notices are sent to the appropriate parties, preventing any issues that might arise from serving them incorrectly.
Example: Serving Notices to Both Freeholders and Leaseholders
To give you a clearer picture, here’s an example from a recent project:
A GP surgery was being converted into several flats, with notifiable works required, including excavation near the property boundary and work on the party walls to insert steel beams. In this case, the neighbouring properties were blocks of flats, and several of the flats required Party Wall Notices.
Upon reviewing the ownership details, our surveyor found that:
- There was one freeholder for each adjoining building.
- There were three leaseholders within the adjacent buildings who also needed to be served with Notices.
This resulted in five sets of notices, each one tailored to the specific owner or leaseholder. Each Notice had to be individually served to ensure compliance.
Given the complexity of serving multiple owners, it was crucial to serve the Party Wall Notices as early as possible. The more owners you need to serve Notices to, the higher the likelihood of delays in the process. Multiple owners might either not respond in time or may dissent, which could lead to a formal dispute and the need for a Party Wall Award.
In this particular project, only one neighbour dissented. The dissenting Adjoining Owner appointed their own surveyor, and then the two surveyors worked together to agree on a Party Wall Award, resolving the issue efficiently.
Key Takeaways:
- Serve Notices on Both Freeholders and Leaseholders: The Party Wall Act requires notices to be served on all owners of a neighbouring property, whether they are the freeholder or a leaseholder.
- Accurate Information: Your Party Wall surveyor will confirm the correct ownership details from the HM Land Registry to ensure all parties are properly notified.
- Early Notice is Essential: Serving notices early is crucial, particularly when dealing with multiple parties. Delays in responses or dissension could complicate and prolong your construction timeline.
- Multiple Parties Involved: The more individuals you need to serve notices to, the greater the potential for delays or disputes. Always be proactive in addressing any issues.
If you’re facing a complex Party Wall situation involving freeholders and leaseholders, contact Simple Survey for expert guidance and to ensure your notices are served correctly and efficiently. We can handle the complexities, leaving you to focus on the successful completion of your project.