CHI/18UK/LSC/2020/0102 — service charge decision
In CHI/18UK/LSC/2020/0102, decided 21 June 2021, the First-tier Tribunal considered 13 disputed service charge items at Lenwood Country Club, Lenwood Road, Northam, Bideford, EX39 3PN and reached a mixed result: 10 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Lenwood Country Club, Lenwood Road, Northam, Bideford, EX39 3PN
Decision date: 21 June 2021
Full decision: Read on GOV.UK
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2019/2020) | — | £508.09 | Allowed in full | — |
| Other charges (2020/2021) | £1,453.62 | £596.73 | Reduced | Landlord could not evidence the cost, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2020/2021) | £445 | £0 | Disallowed entirely | Not payable under the lease |
| Cleaning (2020/2021) | £41,400 | £20,500 | Reduced | Landlord could not evidence the cost, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2020/2021) | £6,750 | £0 | Reduced | Landlord could not evidence the cost |
| Other charges (2020/2021) | £17,160 | £0 | Reduced | Landlord could not evidence the cost |
| Other charges (2020/2021) | £375 | £375 | Allowed in full | Other grounds |
| Other charges (2020/2021) | £5,000 | £4,000 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Reserve fund contributions (2020/2021) | £2,000 | £0 | Disallowed entirely | Not payable under the lease |
| Gardening & grounds (2020/2021) | £6,500 | £6,500 | Allowed in full | — |
| Buildings insurance (2020/2021) | £241.63 | £150 | Reduced | Insurance not market tested, Other grounds |
| Administration charges (2020/2021) | £60 | £10 | Reduced | Not payable under the lease |
| Management fees (2020/2021) | £4,084 | — | Reduced | Fee excessive for service delivered |
Section 20C order: granted.
Key passages (verbatim)
“The Tribunal determines that the services charges payable shall be equivalent to the on account payment collected for this year which is £29,977.50, a 1/59 share of which is payable in respect of each chalet which amounts to £508.09.”
“The Tribunal determines that a reasonable on account payment... is £35,201.25 and a 1/59 contribution of £596.73.”
“There is no provision within the Lease to enable the Respondent to include this in the service charge.”
“the Tribunal determines that the Applicants figure of £20,500 is reasonable”
“In the absence of accounts and a copy of a 'perfected' invoice... it is impossible to assess accurately any possible expenditure.”
“the Tribunal determines that the Applicants figure of £20,500 is reasonable”
“It was unimpressed with the Respondent's submissions because he had twice failed to comply with the November Directions which had led it to conclude that this failure was deliberate.”
“The Tribunal was unable to make a detailed determination on that day with the bundle available to it because of the Respondent's failure to comply with the disclosure requirement in paragraph 11 of the November Directions. It had not supplied a statement of service charge expenditure for the service charge year ending 29 September 2020.”
“because of the Respondent's failure to comply with any of its earlier directions and its general procrastination it had adjourned the determination and gave the Respondent another opportunity to fully comply with its directions”
“the Respondent has failed to take account of this part of its determination.”
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.