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If your neighbour is going to do any work to the existing party wall between your properties then he will have to serve a section 3 - ‘Party Structure Notice’. This could be if he intends to build a loft conversion and put beams in the party wall or even if he wants to remove a chimney breast from his side to gain more room.
A Party Structure Notice is served in relation to work under section 2 of the Act. In other words, Section 2 of the Act lists the different work that must be notified under a section 3 notice. It might be that you have an outhouse with a wall down the middle and one of you wants to do work that effects this. If the wall is a party wall, you must serve notice.
If you intend to expose the party wall by removing the roof coverings then this would affect the adjoining property and provision would have to be made for temporary protection. This work is specifically mentioned under section 2 of the Act.
Most work to an existing party wall will come under this section unless it is very minor work. However, Drilling for a damp proof course will generally be notifiable works.
Looking at it objectively, you have to ask yourself ‘would the work to the party wall be likely to affect my neighbour’?
A Section 3 Party Structure Notice must be served at least two months before any work is due to start.