BIR/00FN/LIS/2020/0012 — service charge decision
In BIR/00FN/LIS/2020/0012, decided 17 November 2020, the First-tier Tribunal considered 26 disputed service charge items at Apartment 101, St Georges Mill, 11 Humberstone Road, Leicester and reached a mixed result: 15 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Apartment 101, St Georges Mill, 11 Humberstone Road, Leicester
Decision date: 17 November 2020
Full decision: Read on GOV.UK
Managing agent named in the decision: Blue Property Management UK Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2018) | — | — | Allowed in full | — |
| Other charges (2019) | — | — | Allowed in full | — |
| Staffing & concierge (2018) | £10,872 | — | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Staffing & concierge (2019) | £9,132 | — | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2018) | £10,530 | £7,800 | Reduced | Costs unreasonably incurred (s19(1)(a)), Standard not reasonable (s19(1)(b)) |
| Cleaning (2019) | £11,700 | £7,800 | Reduced | Costs unreasonably incurred (s19(1)(a)), Standard not reasonable (s19(1)(b)) |
| Utilities (2018) | — | — | Reduced | Apportionment error, Not payable under the lease |
| Utilities (2019) | — | — | Reduced | Apportionment error, Not payable under the lease |
| Other charges (2018) | — | — | Allowed in full | — |
| Other charges (2019) | — | — | Allowed in full | — |
| Other charges (2019) | — | £0 | Disallowed entirely | Works not necessary |
| Management fees (2018) | — | — | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019) | — | — | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2018) | £21,774 | — | Reduced | Not payable under the lease, Costs unreasonably incurred (s19(1)(a)), Duplication of charges |
| Repairs & maintenance (2019) | £64,382 | — | Reduced | Not payable under the lease, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2018) | £1,373 | £0 | Disallowed entirely | Not payable under the lease |
| Other charges (2019) | £7,603 | £0 | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2018) | £5,500 | £0 | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2019) | £10,500 | £0 | Disallowed entirely | Not payable under the lease |
| Cleaning (2018) | — | — | Withdrawn | — |
| Cleaning (2019) | — | — | Withdrawn | — |
| Other charges (2018) | — | — | Allowed in full | — |
| Legal & professional costs (2019) | — | £0 | conceded | Not payable under the lease |
| Administration charges (2019) | £60 | £0 | conceded | — |
| Administration charges (2019) | £50 | £50 | Allowed in full | — |
| Administration charges (2019) | £300 | £300 | Allowed in full | — |
Key passages (verbatim)
“The Tribunal determines that the net figures included in the service charge accounts for those years are reasonable.”
“The Tribunal determines that the net figures included in the service charge accounts for those years are reasonable.”
“The Tribunal therefore determines that the reasonable costs to be included in the service charge accounts for the reception service should be reduced by £144.00 in each of the two service charge years.”
“The Tribunal therefore determines that the reasonable costs to be included in the service charge accounts for the reception service should be reduced by £144.00 in each of the two service charge years.”
“The Tribunal is of the view that the current hourly rate charged by the Respondent is excessive and unreasonable... The Tribunal determines that a reasonable hourly rate throughout the period covered by the present application would be £20.00 per hour inclusive of VAT.”
“The Tribunal determines that a reasonable hourly rate throughout the period covered by the present application would be £20.00 per hour inclusive of VAT. The Tribunal therefore determines that the reasonable costs to be included in the service charge accounts for cleaning would be £7,800.00 in each of the two service charge years.”
This summary is assembled from the structured record of the published decision; amounts appear only where the tribunal stated them. Always rely on the full decision itself.