CAM/12UC/LSC/2021/0020 — service charge decision
In CAM/12UC/LSC/2021/0020, decided 7 October 2021, the First-tier Tribunal considered 5 disputed service charge items at 88 Paddock Street, Soham, Ely, Cambridgeshire and reached a mixed result: 2 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 88 Paddock Street, Soham, Ely, Cambridgeshire
Decision date: 7 October 2021
Full decision: Read on GOV.UK
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2019) | — | — | Disallowed entirely | Landlord could not evidence the cost, Section 20B 18-month time limit |
| Buildings insurance (2020) | £260 | £260 | Allowed in full | — |
| Utilities (2020) | £40 | £40 | Allowed in full | — |
| Reserve fund contributions (2020) | £500 | £100 | Reduced | Costs unreasonably incurred (s19(1)(a)), Apportionment error |
| Management fees (2020) | £400 | £100 | Allowed in full | Fee excessive for service delivered |
Section 20C order: granted.
Key passages (verbatim)
“No Demands, Estimated or Actual Cost Accounts have been provided for year ending 31st December 2019 and neither party has adduced any evidence in respect of that year.”
“The parties agree the insurance therefore it is not in the Tribunal's jurisdiction.”
“The charge of £40.00 for an outside tap divided between the four flats in the Block is £10.00 per annum. The Tribunal determined this to be reasonable for the year in issue.”
“the Tribunal determines that the sum of £100 per unit per annum is reasonable and payable on proof of a designated trust account.”
“The management was limited to occasional inspections to assess the condition of the Property, arranging repairs and paying invoices and collecting costs, when required and arranging insurance and collecting the premiums and ground rent. Notwithstanding a relatively small amount of management there is an optimum charge below which it would not be worth a managing agent's while to take on the work. In the present case the Tribunal determined that £100 per unit was reasonable.”
“The Demands for 2020 were not accompanied by an Estimate as required by the Lease. The Actual Cost Accounts provided were also not compliant with the Lease as they had not been certified or audited by an accountant. The Landlord must comply with the Lease, it is not at liberty to provide Accounts in Arrears. There is a requirement to provide estimates which must be followed by actual cost accounts at the end of the year.”
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.