CAM/00KF/LSC/2022/0052 — service charge decision
In CAM/00KF/LSC/2022/0052, decided 3 March 2023, the First-tier Tribunal considered 30 disputed service charge items at Ground Floor Flat, 12 Rayleigh Avenue, Westcliff-on-Sea, Essex and reached a mixed result: 18 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Ground Floor Flat, 12 Rayleigh Avenue, Westcliff-on-Sea, Essex
Decision date: 3 March 2023
Full decision: Read on GOV.UK
Managing agent named in the decision: Gateway Property Management Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2015-16) | £1,026 | £1,026 | Allowed in full | — |
| Management fees (2015-16) | £637 | £637 | Allowed in full | — |
| Other charges (2015-16) | £48 | £48 | Allowed in full | — |
| Other charges (2015-16) | £12 | £0 | Disallowed entirely | Fee excessive for service delivered, Duplication of charges |
| Other charges (2015-16) | £36 | £0 | Disallowed entirely | Fee excessive for service delivered, Duplication of charges |
| Other charges (2015-16) | £480 | £480 | Allowed in full | — |
| Major works (2015-16) | £1,690 | £1,450 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2019-20) | £1,041 | £1,041 | Allowed in full | — |
| Repairs & maintenance (2019-20) | £66 | £66 | Allowed in full | — |
| Management fees (2019-20) | £827 | £720 | Reduced | Fee excessive for service delivered |
| Other charges (2019-20) | £45 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2019-20) | £12 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2019-20) | £45 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Legal & professional costs (2019-20) | £300 | £0 | Disallowed entirely | Not payable under the lease |
| Major works (2018-19) | £5,537.40 | £5,037.40 | Reduced | Other grounds |
| Buildings insurance (2020-21) | £1,106.07 | £1,106.07 | Allowed in full | — |
| Repairs & maintenance (2020-21) | £66 | £66 | Allowed in full | — |
| Management fees (2020-21) | £827 | £720 | Reduced | Fee excessive for service delivered |
| Other charges (2020-21) | £36 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2020-21) | £12 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2020-21) | £42 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Reserve fund contributions (2020-21) | £316.70 | £316.70 | Allowed in full | — |
| Buildings insurance (2021-22) | £1,254.70 | £1,200 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2021-22) | £66 | £66 | Allowed in full | — |
| Management fees (2021-22) | £827 | £720 | Reduced | Fee excessive for service delivered |
| Other charges (2021-22) | £41.95 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2021-22) | £12 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Other charges (2021-22) | £44.98 | £0 | Disallowed entirely | Duplication of charges, Fee excessive for service delivered |
| Reserve fund contributions (2021-22) | £106.12 | £106.12 | Allowed in full | — |
| Legal & professional costs (2019-20) | £300 | £0 | conceded | — |
Key passages (verbatim)
“The buildings insurance cost of £1,026 appears high, but in the absence of any comparable quotation or the like from the Respondent, we are not satisfied that this is more than the upper end of reasonable cost for this building.”
“We consider that in the circumstances the management fee of £637 (including VAT) is reasonable, at about £265 plus VAT per unit.”
“accountancy fees of £48 and bank charges of £12 are charged in addition (and are, we consider, reasonable)”
“the additional charges for postage (£12) and the standing charge for an out of hours emergency service (£36) were not reasonably incurred, because they should be included in the management fee”
“the standing charge for an out of hours emergency service (£36) were not reasonably incurred, because they should be included in the management fee”
“We are satisfied that the remaining £480 fee was reasonably incurred as 50% of the fee charged by the surveyors … for preparing the consultation notices for the planned repair and redecoration works”
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.