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Planning extension along party wall - town planning help pls

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Hi all

I’m new to the forum and I'm hoping there are helpful people out there with good knowledge/experience/thoughts on the town planning standards and processes relating to my proposed second story rear extension to our single fronted 1920’s weatherboard home in Northcote in Melbourne’s northern suburbs (Darebin council). Our home is adjoined to our side neighbour’s by a double brick party wall which stretches along about 20m from front to back. The total property line is about 36.5m. What I would ideally like to do is extend back further along the property line another 4.5 meters and also to add a second story. With the second story, I would ideally like to have this aligned with the downstairs side wall or about a half metre in.

I have been reading the Darebin council planning scheme rules and they seem pretty strict about building along our property boundary. Standard A10 appears to say that if going up to a wall height of 6.9 metres then the wall needs to be set back 2 metres from the property line. And standard A11 appears to affect my plans to extend back further along the side boundary line. Here is the link to the planning scheme standards.
http://planningschemes.dpcd.vic.gov.au/aavpp/54_04.pdf

Has anyone had previous experience dealing with these standards or Darebin planning or have advice on how to approach this to get the desired outcome? I have seen quite a few houses sold in the area with modern double story extensions at the rear of the property which are much closer to the property line than 2 metres so I am really hoping there is some way to get around this....

Here is a pic from our title so you can see where the party wall sits:


Thanks!
Northcote22 this is a complex issue, but remember that Darebins changes to the planning act can be reviewed by VCAT. It is a very good argumnet that a two metre setback on a site only seven metres wide is onerous.
There will not be serious overshadowing issues as that neighbour is to your west.
Thanks bfl. I've had a draftsman come and inspect the property and his opinion was that because the next door property has extended back 5 metres (although a metre off the line) and they have no windows on that side then we should be able to get dispensation and be able to build along the line provided there is no objection. I sure hope he's right!
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