Decision summary

CHI/00HN/LSC/2022/0020 — service charge decision

In CHI/00HN/LSC/2022/0020, decided 7 April 2022, the First-tier Tribunal considered 10 disputed service charge items at First Floor Flat, 96 Pine Road, Bournemouth and found largely for the leaseholder: 10 items were reduced or disallowed. Full decision on GOV.UK below.

Property: First Floor Flat, 96 Pine Road, Bournemouth
Decision date: 7 April 2022
Full decision: Read on GOV.UK

Managing agent named in the decision: Property Fusion Ltd..

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Management fees (2017)—£0Disallowed entirelyNot payable under the lease
Management fees (2018)—£0Disallowed entirelyNot payable under the lease
Management fees (2019)—£0Disallowed entirelyNot payable under the lease
Management fees (2020)—£0Disallowed entirelyNot payable under the lease
Management fees (2021)—£0Disallowed entirelyNot payable under the lease
Legal & professional costs (2017)—£0Disallowed entirelyNot payable under the lease
Legal & professional costs (2018)—£0Disallowed entirelyNot payable under the lease
Legal & professional costs (2019)—£0Disallowed entirelyNot payable under the lease
Legal & professional costs (2020)—£0Disallowed entirelyNot payable under the lease
Legal & professional costs (2021)—£0Disallowed entirelyNot payable under the lease

Key passages (verbatim)

“This lease makes no mention of the landlord being able to claim managing agents' fee or accountants' fees in the list of things which can be included in a service charge.”
On management fees
“This lease makes no mention of the landlord being able to claim managing agents' fee or accountants' fees in the list of things which can be included in a service charge.”
On management fees
“This lease makes no mention of the landlord being able to claim managing agents' fee or accountants' fees in the list of things which can be included in a service charge.”
On management fees
“This lease makes no mention of the landlord being able to claim managing agents' fee or accountants' fees in the list of things which can be included in a service charge.”
On management fees
“This lease makes no mention of the landlord being able to claim managing agents' fee or accountants' fees in the list of things which can be included in a service charge.”
On management fees
“I determine that none of the claimed managing agents' fees or accountants' fees claimed are payable.”
On legal & professional costs
“it is also worth bringing to the attention of the Respondent's managing agents that the Royal Institution of Chartered Surveyors has its own rules for members who are managing agents which say that if standard annual fees are being charged, those fees should include the cost of preparing annual service charge accounts particularly where, as in this case, the accounts are extremely simple and straightforward. This means, in effect, that in this sort of situation, separate accountant's fees would not be recoverable, even if reasonable in amount.”
Of Property Fusion Ltd. (managing agents)
“If the landlord is surprised by this decision, it should understand that the wording of the lease was known actually or by implication at the date it obtained the freehold title. In other words, if the Respondent was unsure or unclear about whether it could recover these expenses, it should have checked with its advisors at the time.”
Of Greentree Estates & Investments Ltd. (Respondent)

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.