CAM/00KF/LSC/2020/0043 — service charge decision
In CAM/00KF/LSC/2020/0043, decided 8 January 2021, the First-tier Tribunal considered 11 disputed service charge items at 25 & 25a Ailsa Road, Westcliff on Sea, Essex and reached a mixed result: 4 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 25 & 25a Ailsa Road, Westcliff on Sea, Essex
Decision date: 8 January 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Warwick Estates.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Cleaning (2020-21) | £216 | £0 | Disallowed entirely | Not payable under the lease |
| Gardening & grounds (2020-21) | £780 | £0 | Disallowed entirely | Not payable under the lease |
| Other charges (2020-21) | £14.40 | £14.40 | Allowed in full | — |
| Legal & professional costs (2020-21) | £100 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Other charges (2020-21) | £219.99 | £220 | Allowed in full | — |
| Management fees (2020-21) | £360 | £360 | Allowed in full | — |
| Reserve fund contributions (2020-21) | £200 | £200 | Allowed in full | — |
| Repairs & maintenance (2020-21) | £400 | £400 | Allowed in full | — |
| Other charges (2020-21) | £60 | £60 | Allowed in full | — |
| Management fees (2020-21) | — | £74.40 | Reduced | Not payable under the lease, Fee excessive for service delivered |
| Reserve fund contributions (2020-21) | £100 | £100 | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“As was recognised and conceded by the Respondent's Managing Agent, all the internal areas are demised so there are no internal communal parts to clean… a charge for internal cleaning and gardening is not payable under the Flat 25a Lease. Therefore, the charge is not reasonable or payable.”
“The rear garden is also demised and therefore no maintenance of that area is required. Therefore, notwithstanding the provisions of paragraph 2 of the Third Schedule a charge for internal cleaning and gardening is not payable under the Flat 25a Lease.”
“The Out of Hours Emergency Fee of £7.20 for call handling was also determined to be reasonable.”
“obtaining the Landlord's approval of budgets and service charge accounts is a cost that should be included in the management fee… the £100.00 charge was determined not to be reasonable.”
“Overall, the Tribunal considered that as the first Survey/Report undertaken by the Managing Agent since taking over management and taking into account the prevailing coronavirus restrictions, it was necessary and the costs reasonably incurred and payable.”
“the Tribunal therefore used its knowledge and experience and determined that in the absence of evidence to the contrary the Management Fee of £360.00 was reasonable and payable.”
“However, in future the report needed to be more Building specific and focused on the obligations under the Lease as well as any statutory requirements.”
“the Respondent and its Managing Agent demanded a Service Charge that was not in full compliance with the Lease and that the Applicants were justified in bringing the matter to the Tribunal. Although the appointment of a new Managing Agent had been some reason for the error it was not right that the Applicants should have to pay for it.”
“This appears to be an error in that there is no section 146 of the Land Registration Act 2002 and the section and Act that it is intended to refer to is section 146 of the Law of Property Act 1925.”
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.