Legal News | 21.01.26
Build-Over Agreements: What Homeowners and Buyers Need to Know
When planning a property extension, homeowners often concentrate on design aesthetics and securing planning permission. However, one fundamental legal requirement often overlooked is the Build-Over Agreement. Obtaining an agreement of this kind is vital when any construction takes place over, or within close proximity of, a public sewer. Without it, homeowners risk significant complications during the sale of the property.
Defining a Build-Over Agreement
A Build-Over Agreement is provided by the relevant local Water Authority as formal consent. This grants the homeowner approval to build an extension over or within three metres of a public sewer or lateral drain. Its primary purpose is to uphold the structural integrity of the sewer and guarantee that adequate access for maintenance purposes is preserved.
When is this Agreement Required?
Where an extension is planned to be constructed within the three-metre threshold, it is best practice to obtain a Build-Over Agreement before the commencement of the build. Taking this precaution helps to avoid future legal and practical complications, particularly when the property is later sold or inspected.
What to Do if There Is No Agreement?
If you are in the process of purchasing a property and discover that an extension was previously constructed without the necessary consent, there are two main courses of action available to you; these are as follows:
- Retrospective Approval: In an ideal scenario, the local Water Authority would inspect the existing extension and issue a retrospective Build-Over Agreement. Albeit it is likely that the Sellers would avoid this route as it may invite scrutiny of the work they carried out. Furthermore, by contacting the water authority, you risk invalidating any potential indemnity insurance, thereby removing an option that might otherwise offer valuable protection.
- Indemnity Insurance: Generally, buyers tend to prefer this option. In procuring an indemnity policy, the buyer, the lender and future owners (depending on when the property is next sold) are protected against the charges associated with the Water Authority accessing the sewer. The seller typically covers the cost of this policy, which remains valid for a period of ten years (or longer for mortgage lenders).
Key Conditions for Insurance
Cover typically applies if:
- The property has been used as a dwelling for numerous years;
- The works are over two years old;
- There are no proposals for additional development;
- No former contact with the Water Authority has taken place; and
- The survey has not identified any defects arising from the works.
Where any of the conditions are not fulfilled, a bespoke policy may be needed.
Risks and Recommendations
Although it is unlikely that the Water Authority would necessitate alterations, it is not unavoidable. If such action were demanded, the extension may need to be altered or, in the worst case, removed entirely. Hence, it is recommended that you seek advice from a surveyor regarding the potential risk of damage to the sewer or lateral drain.
Final Thoughts
If you are looking to buy or sell a property with an extension situated close to a sewer, obtaining a Build-Over Agreement at an early stage can help prevent unexpected costs and delays. For tailored advice on your property sale or purchase, please contact our Residential Property Team at property@wansbroughs.com or 01380 733367.
