BIR/00FN/LIS/2021/0008 — service charge decision
In BIR/00FN/LIS/2021/0008, decided 6 August 2021, the First-tier Tribunal considered 45 disputed service charge items at Flat 20, 137 Danvers Road, Leicester and reached a mixed result: 25 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 20, 137 Danvers Road, Leicester
Decision date: 6 August 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Self-Funding Ltd (formerly TJD Trade Ltd trading as Self-Funding).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2015-16) | £1,005.30 | £1,005.30 | Allowed in full | — |
| Buildings insurance (2016-17) | £735 | £735 | Allowed in full | — |
| Buildings insurance (2017-18) | £937.80 | £937.80 | Allowed in full | — |
| Buildings insurance (2018-19) | £1,105.92 | £1,105.92 | Allowed in full | — |
| Buildings insurance (2019-20) | £1,599.01 | £1,599.01 | Allowed in full | — |
| Management fees (2015-16) | £3,200 | £3,200 | Allowed in full | — |
| Management fees (2016-17) | £3,400 | £3,400 | Allowed in full | — |
| Management fees (2017-18) | £3,600 | £3,600 | Allowed in full | — |
| Management fees (2018-19) | £3,800 | £3,800 | Allowed in full | — |
| Management fees (2019-20) | £4,000 | £4,000 | Allowed in full | — |
| Administration charges (2015-16) | £39 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2016-17) | £39 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2017-18) | £39 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2018-19) | £39 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2019-20) | £39 | £0 | Disallowed entirely | Not payable under the lease |
| Other charges (2015-16) | £800 | £800 | Allowed in full | — |
| Other charges (2016-17) | £800 | £800 | Allowed in full | — |
| Other charges (2017-18) | £800 | £800 | Allowed in full | — |
| Other charges (2018-19) | £850 | £850 | Allowed in full | — |
| Other charges (2019-20) | £850 | £850 | Allowed in full | — |
| Gardening & grounds (2015-16) | £8,999.74 | £5,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Gardening & grounds (2016-17) | £8,441.74 | £5,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Gardening & grounds (2017-18) | £8,765.74 | £5,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Gardening & grounds (2018-19) | £8,428.46 | £5,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Gardening & grounds (2019-20) | £10,228.46 | £5,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2015-16) | £2,385.26 | £2,107.20 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2016-17) | £2,385.26 | £2,107.20 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2017-18) | £2,385.26 | £2,107.20 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2018-19) | £2,410.26 | £2,107.20 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2019-20) | £2,450.26 | £2,107.20 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Utilities (2015-16) | £677 | £677 | Allowed in full | — |
| Utilities (2016-17) | £705.97 | £705.97 | Allowed in full | — |
| Utilities (2017-18) | £905.62 | £905.62 | Allowed in full | — |
| Utilities (2018-19) | £1,326.02 | £1,326.02 | Allowed in full | — |
| Utilities (2019-20) | £1,434.12 | £1,434.12 | Allowed in full | — |
| Repairs & maintenance (2015-16) | £1,823 | £980.90 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2016-17) | £1,685 | £829 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2017-18) | £2,150 | £1,204 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2018-19) | £1,075 | £621 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2019-20) | £1,075 | £467 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Staffing & concierge (2015-16) | £10,181 | £1,100 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Staffing & concierge (2016-17) | £10,240.15 | £1,150 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Staffing & concierge (2017-18) | £10,404.94 | £1,200 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Staffing & concierge (2018-19) | £10,304.16 | £1,250 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Staffing & concierge (2019-20) | £10,493.48 | £1,300 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
Section 20C order: granted.
Key passages (verbatim)
“in the absence of evidence to the contrary the Tribunal found that in the knowledge and experience of its members the charges were reasonable.”
“The Tribunal noted that the Applicant's complaint that she felt there was a lack of urgency in dealing with the leak in 2019. Nevertheless, overall, the Tribunal found that the standard of service was commensurate with the charge made.”
“the Tribunal found that the parties had in effect made a separate agreement outside the Lease for the payment of the Service Charge … As this was outside the Lease the Tribunal determined that it had no jurisdiction as to its reasonableness.”
“In the absence of evidence to the contrary the Tribunal found that in the knowledge and experience of its members the charges were reasonable.”
“The Tribunal therefore determines that the reasonable charge for Gardening for each of the years in issue is £5,000.00 per annum.”
“The Tribunal therefore determines that the reasonable charge for Cleaning for each of the years in issue is £2,107.20 per annum.”
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.