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FAQ's
Security for Expenses

How much Security For Expenses should I be asked to deposit?

How much Security For Expenses should I be asked to deposit?
How much Security For Expenses should I be asked to deposit?
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This depends on the nature, scope and extent of the works, and their location. The more complex the works, the more they will interfere with the adjoining building and the more expensive the buildings are, the higher the Security for Expenses sum is likely to be.

By Agreement

Security for Expenses—both its type and amount—is typically agreed by the two owners.

Party Wall Award

However, if they cannot reach an agreement, the surveyors involved will resolve the matter by issuing an award under section 10 of the Party Wall Act.

Where major works are planned, such as digging out a basement, it makes sense that the adjoining owner should not have to worry about the building owner’s ability (or inability) to cover any potential losses. This concern is particularly relevant if the building owner is a limited company with unknown, minimal or no assets, or is an offshore entity.

Examples

We have seen all sorts of different values, including:

  • For a loft conversion in Kent: £1,000
  • For a basement excavation in Belgravia: £35,000
  • For a basement excavation in Hampstead: £50,000
  • For a basement excavation Belgravia: £45,000
  • For a basement excavation in Holland Park: £870,000

Open a free Security for Expenses Account

You can open a free Security for Expenses account at any time, 24/7.
Security held at the Bank of England.
Find out more
Deposit Security