CHI/00HN/LSC/2021/0002 — service charge decision
In CHI/00HN/LSC/2021/0002, decided 7 June 2021, the First-tier Tribunal considered 9 disputed service charge items at Grosvenor House, 32 Westbury Road, Bournemouth, Dorset and reached a mixed result: 5 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Grosvenor House, 32 Westbury Road, Bournemouth, Dorset
Decision date: 7 June 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: SPL Property Management Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Cleaning (2020-21) | £2,000 | £1,500 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2020-21) | £4,300 | £2,385 | Reduced | Other grounds |
| Cleaning (2020-21) | £660 | £300 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2020-21) | £1,000 | £500 | Reduced | Landlord could not evidence the cost |
| Repairs & maintenance (2020-21) | £800 | £500 | Reduced | Landlord could not evidence the cost |
| Management fees (2020-21) | £6,667.30 | £6,667.30 | Allowed in full | — |
| Legal & professional costs (2020-21) | £5,600 | £5,600 | Allowed in full | — |
| Reserve fund contributions (2020-21) | £2,000 | £2,000 | Allowed in full | — |
| Administration charges (2020-21) | £60 | £60 | Allowed in full | — |
Section 20C order: refused.
Key passages (verbatim)
“the Tribunal considers that in the absence of any formal quotes the charge for the previous year should provide a reasonable guide for the likely costs in the year to come and decides that the estimated amount for cleaning common parts within the annual charge should be reduced from £2,000 to £1,500.”
“The original provision for Buildings Insurance was £4,300 but this has now been reduced to £2,385 which is accepted by the Applicants.”
“the Tribunal decides that the provision for clearing the gutters in 2020/2021 should be reduced to £300.”
“Taking the comments from the Applicants who have a longer history at the property than the Agents and the absence of any copy invoices or receipts from the Agents the Tribunal decides that this should be reduced to £500 for the year 2020/2021.”
“the Tribunal decides that the amount for maintenance estimated for the current year be reduced to £500.”
“a fee of 10 per cent is not unusual for overseeing such works which will include the appointment and liaison with surveyors… the Tribunal determines that this charge is reasonable.”
“The Tribunal has not been provided with the terms of engagement for SPL although it is standard practice for a managing agent to make a charge when overseeing substantial works which necessitate a s.20 process and a fee of 10 per cent is not unusual for overseeing such works which will include the appointment and liaison with surveyors.”
“The Leaseholders, based on their experience at the property, consider £1000 to be too high… They also state that some of the items left in the Hallway were owned by one or more of the Leaseholders.”
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.