BIR/00FN/LIS/2020/0038 — service charge decision
In BIR/00FN/LIS/2020/0038, decided 6 April 2021, the First-tier Tribunal considered 36 disputed service charge items at Apartments 12 – 19 Scraptoft Hall, Church Hill, Scraptoft, Leicester LE7 9TW and reached a mixed result: 19 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Apartments 12 – 19 Scraptoft Hall, Church Hill, Scraptoft, Leicester LE7 9TW
Decision date: 6 April 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Blue Property Management UK Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2018) | £3,788 | £3,788 | Allowed in full | — |
| Buildings insurance (2018) | £488 | £0 | Disallowed entirely | Landlord could not evidence the cost |
| Buildings insurance (2019) | £8,684 | £6,056.40 | Reduced | Insurance not market tested |
| Buildings insurance (2020) | £4,104.38 | £4,104.38 | Allowed in full | — |
| Other charges (2019) | £420 | £420 | Allowed in full | — |
| Other charges (2018) | £425.80 | £425.80 | Allowed in full | — |
| Other charges (2019) | £445 | £445 | Allowed in full | — |
| Other charges (2020) | £325 | £0 | Disallowed entirely | Not payable under the lease |
| Cleaning (2018) | £2,033.76 | £2,033.76 | Allowed in full | — |
| Cleaning (2019) | £2,022.24 | £2,022.24 | Allowed in full | — |
| Cleaning (2020) | £1,348.16 | £1,348.16 | Allowed in full | — |
| Utilities (2018) | £922 | £922 | Allowed in full | — |
| Utilities (2019) | £558 | £558 | Allowed in full | — |
| Utilities (2020) | £417.74 | £417 | Allowed in full | — |
| Other charges (2018) | £280 | £120 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2019) | £240 | £120 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2020) | £180 | £120 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2018) | £480 | £120 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2018) | £480 | £120 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2019) | £240 | £0 | Disallowed entirely | Works not necessary |
| Other charges (2019) | £240 | £0 | Disallowed entirely | Works not necessary |
| Other charges (2020) | £240 | £0 | Disallowed entirely | Works not necessary |
| Other charges (2020) | £240 | £0 | Disallowed entirely | Works not necessary |
| Management fees (2018) | £2,576 | £1,728 | Reduced | Fee excessive for service delivered, Standard not reasonable (s19(1)(b)) |
| Management fees (2019) | £2,208 | £1,728 | Reduced | Fee excessive for service delivered, Standard not reasonable (s19(1)(b)) |
| Management fees (2020) | £1,956 | £1,152 | Reduced | Fee excessive for service delivered, Standard not reasonable (s19(1)(b)) |
| Gardening & grounds (2018) | £333 | £333 | Allowed in full | — |
| Gardening & grounds (2019) | £432 | £432 | Allowed in full | — |
| Gardening & grounds (2020) | £288 | £288 | Allowed in full | — |
| Other charges (2019) | £12 | £12 | Allowed in full | — |
| Other charges (2020) | £12 | £12 | Allowed in full | — |
| Repairs & maintenance (2018) | £1,869.15 | £1,329.63 | Reduced | Poor standard of work |
| Repairs & maintenance (2019) | £3,650 | £3,446.08 | Reduced | Poor standard of work |
| Repairs & maintenance (2020) | £2,520.52 | £2,520.52 | Allowed in full | — |
| Legal & professional costs (2020) | £480 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2019) | £650 | £0 | Disallowed entirely | Not payable under the lease |
Section 20C order: granted.
Key passages (verbatim)
“The Tribunal therefore determines that the balancing payment for the Insurance Premium for the year 2017 of £488.00 is not reasonable or payable.”
“The Tribunal therefore determines that the insurance premium of £6,056.40 to be reasonable and payable by the Applicants to the Respondent for the year 2019.”
“the Tribunal found that paragraph 1.1.2 of Schedule 5 of the Lease authorised the incurring and payment of re-valuation fees of £420.00, which in the knowledge and experience of the Tribunal are determined to be reasonable.”
“The Accountancy fees of £426.00 (£325.00 + Certification Fee of £100.80) for the year ending 31st December 2018 are reasonable”
“£445.oo (£325.00 + Certification Fee of £120.00) for the year ending 31st December 2019 are determined to be reasonable and payable”
“The Accountancy charge of £325.00 for the hand over to the Right to Manage Company is not a service charge item but is chargeable as part of the proceedings relating to the Right to Manage”
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.