A Metford family is lucky to be alive after a verandah on their home was set on fire last night, during a neighbourhood feud.

A 21-year-old man has been charged with malicious damage with intent to endanger lives and assault.

He was refused bail by Maitland Local Court this morning.

Police claim he doused the home on Willow Drive with fuel at 11pm, before setting it alight, while a number of people including young children were inside.