A right to light claim can delay or derail any development project, and it could result in significant financial losses. This is why it is important that everyone involved in any property development project takes the time to understand what right to light is, along with the possible implications of a claim.
What is Right to Light?
Right to light is a legal easement that gives landowners a right to receive light through any defined aperture, such as a window or a skylight, on any building on their land.
This is an extremely old law, based on measures first outlined in the Ancient Lights Law of 1663, and further developed in the Prescription Act 1832. The Prescription Act 1832 stipulates that a property owner obtains an absolute and indefeasible right to light after 20 years of uninterrupted access through a buildings window or opening.
What are the Purpose of Right to Light Laws?
These laws are put in place to prevent developers from building extensions or structures that block or reduce natural light below acceptable levels.
If a landowner has been receiving natural daylight through windows or other apertures for 20 years or more, then they can prohibit any development that would deprive them of this light
In practice, this means that neighbouring properties cannot build anything that would obstruct this light.
What is a Light Obstruction Notice (LON)?
Often a Light Obstruction Notice (LON) is issued by the developer to the neighbouring properties. A LON is a legal tool used in England and Wales to stop a neighbour from gaining a legal right to light. It acts as a virtual barrier which pauses the 20-year time limit to claim that light and lasts for 12 months if registered correctly.
How Does the Right to Light 20 Year Rule Work?
Imagine a landowner who has been living in their property for 20 years or more and they have always received light through the large windows in their living room. However, one of their neighbours builds an extension which blocks a lot of this light. As a result, their living room is not as bright as it used to be.
In this instance, the claimant could make a right to light claim by verifying their entitlement by hiring a specialist surveyor / solicitor to investigate. Most disputes end in financial compensation or adjusted building plans, but it could also end up with a court-ordered cut back, demolition or an injunction stopping the development altogether.
This is why it is crucial for property developers to have a financial contingency plan.
The Role of Insurance in Right to Light Claims
An insurance policy can provide you with the necessary financial contingency plan. Whilst it doesn’t remove the issue, it provides peace of mind that if a claim occurs then the insurance policy will indemnify the insured for financial losses covered in the policy.
What does a Right to Light Insurance policy cover?
- Court costs and out of court settlements
- Loss in market value of the property
- Abortive costs of works and alteration, demolition and reinstatement of a property
- Professional fees associated with the above
- Defence costs, legal fees and other expenses
Additionally, you can add the following to the insurance policy if required:
- Delay costs: The costs associated with the suspension of works pending a court order or resolution of a claim
- Business interruption: Loss of rental income and service charges in the event of an injunction
- Re-location costs: costs of relocating tenants in the event of an injunction or court order pending resolution
- Service provider costs: utilities and other services can be covered by the insurer if there is a delay in a development due to the defect. Some insurers provide delay costs as standard in their policies.
When to Arrange Right to Light Insurance
If you are developing and think that you could be infringing onto the neighbouring properties right of light, then it would be best to first speak with a right of light surveyor and an insurance broker. The earlier you seek insurance the easier it is to obtain a policy which fully protects the developer.
Get in Touch for Insurance Advice
At James Hallam we work with your surveyor to ensure you have a strategy that suits your needs as a developer and make sure that insurers structure this into the policy wording.
If you would like us to obtain a Right of Light quotation for you, we would need the following information:
- The Rights of Light Report (with Equivalent First Zone Figures EFZ)
- Gross Development Value
- Details of neighbourly matters e.g party wall / crane oversail
- Details of whether any light obstruction notices have been served
- Planning officers report if cover is required post planning