CAM/00KF/LIS/2020/0007 & others — service charge decision
In CAM/00KF/LIS/2020/0007 & others, decided 29 December 2020, the First-tier Tribunal considered 16 disputed service charge items at Beaumont Court & Richmond House, Victoria Avenue, Southend on Sea and reached a mixed result: 9 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Beaumont Court & Richmond House, Victoria Avenue, Southend on Sea
Decision date: 29 December 2020
Full decision: Read on GOV.UK
Managing agent named in the decision: B & R Property Management Ltd / IVPM.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Legal & professional costs (2018-19) | — | £0 | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2018-19) | £104,445 | £83,896 | Reduced | Undisclosed insurance commission, Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2019-20) | £83,896 | £83,896 | Allowed in full | — |
| Cleaning (2018-19) | £11,713 | £11,713 | Allowed in full | — |
| Cleaning (2019-20) | £43,577.12 | £43,577.12 | Allowed in full | — |
| Repairs & maintenance (2018-19) | £10,860 | £10,860 | Allowed in full | — |
| Repairs & maintenance (2019-20) | £10,720 | £10,720 | Allowed in full | — |
| Other charges (2019-20) | £11,172 | £0 | Disallowed entirely | Not payable under the lease |
| Legal & professional costs (2018-19) | £1,363 | £1,135 | Allowed in full | Other grounds |
| Legal & professional costs (2019-20) | £6,369 | £1,170 | Reduced | Costs unreasonably incurred (s19(1)(a)), Not payable under the lease |
| Management fees (2019-20) | £85,000 | £70,000 | Reduced | Fee excessive for service delivered, Poor standard of work |
| Repairs & maintenance (2019-20) | — | £250 | Reduced | Not payable under the lease |
| Other charges (2019-20) | £34.99 | £0 | Disallowed entirely | Not payable under the lease |
| Other charges (2019-20) | — | £0 | Disallowed entirely | Not payable under the lease |
| Other charges (2019-20) | — | £0 | Disallowed entirely | Not payable under the lease |
| Repairs & maintenance (2019-20) | £1,660 | £1,660 | Allowed in full | — |
Section 20C order: conditional.
Key passages (verbatim)
“legal costs incurred in attempting to recover those costs do not fall within any of the various provisions of the lease for the recovery of costs by the landlord from the lessees”
“the premium of £104,445.00 demanded in respect of the year 18/19 is not and that the recoverable sum should be reduced to the same amount as is claimed in respect of 19/20”
“we consider that the premium of £83,896.00 claimed in respect of the year 19/20 is reasonable and recoverable”
“In 18/19 cleaning costs were £11,713.”
“In 19/20 they increased, under B&R's management, to £43,577.12.”
“we are in no doubt that these charges were reasonably and properly incurred as a consequence of the way in which the chutes were being used by residents”
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.