CHI/00ML/LSC/2021/0049 — service charge decision
In CHI/00ML/LSC/2021/0049, decided 11 January 2022, the First-tier Tribunal considered 9 disputed service charge items at Flat 3, 43 Grand Parade, Brighton BN2 9QA and reached a mixed result: 1 item was reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 3, 43 Grand Parade, Brighton BN2 9QA
Decision date: 11 January 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: Powell and Co Investments Limited (managed by Mr Sean Powell).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Legal & professional costs (2019-2020) | £600 | £0 | Disallowed entirely | Landlord could not evidence the cost |
| Buildings insurance (2019-2020) | — | — | Allowed in full | — |
| Cleaning (2019-2020) | — | — | Allowed in full | — |
| Repairs & maintenance (2019-2020) | — | — | Allowed in full | — |
| Utilities (2019-2020) | — | — | Allowed in full | — |
| Other charges (2019-2020) | — | — | Allowed in full | — |
| Management fees (2019-2020) | £1,140 | — | Allowed in full | — |
| Management fees (2020-2021) | — | — | Allowed in full | — |
| Buildings insurance (2020-2021) | — | — | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“We determine this is not payable within the accounts for the year ending 24th June 2020… no invoice had been produced or received by the Respondent. In our judgment as a result this sum is not reasonable.”
“We are satisfied that the cost is reasonable. We take account of the fact that it is for the Respondent to organise and determine the arrangements it wishes to make.”
“We are satisfied that cleaning and maintenance were undertaken as suggested during 2019/2020. The costs claimed are modest and we are satisfied that these sums are payable.”
“We are satisfied that cleaning and maintenance were undertaken as suggested during 2019/2020. The costs claimed are modest and we are satisfied that these sums are payable.”
“Again in respect of electricity we find the costs reasonable. The amount is relatively small and Mrs Aleksandrova's complaint about the costs of running a dehumidifier appear to relate to the year 2020/2021.”
“We are on balance satisfied that the undertaking of such a report is reasonable by the Respondent. Landlord's are required to satisfy themselves in respect of asbestos within properties and the fee charged is modest.”
“We must record our frustration that the Respondent had failed to provide all the documents it sought to rely upon in accordance with the directions. In particular the accounts and service charge certificates prepared following the decision of the Upper Tribunal [2021] UKUT 10(LC). We are satisfied that prior to their provision at the hearing on 11th October 2021 these had not been seen by the Applicant (or the Tribunal). We are at a loss to understand why these were not disclosed given the fundamental nature of these documents to the issues in dispute.”
“We do however express our surprise that Mr Powell on questioning appeared to have no idea as to what certain figures related to or how they had been calculated. We note Mr Powell had not called the accountant to give evidence.”
“A manager properly undertaking their role would at the very least have queried why no invoices had been received and made enquiries. Lockdown did not exist for all of this period. A manager properly undertaking their duties would have noticed the lack of invoices and or have inspected the site and noted the lack of communal cleaning.”
“Whilst the ultimate ownership may be the same, being himself, as separate legal entities we would expect the management company to be a member of a redress scheme. Certainly, if it manages separate short term tenancies it is a statutory requirement.”
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.