Decision summary

CHI/19UG/LIS/2021/0014 — service charge decision

In CHI/19UG/LIS/2021/0014, decided 20 July 2021, the First-tier Tribunal considered 5 disputed service charge items at Flats 1, 3, 5, 9 and 10 Gablehurst, Poole Road, Upton, Poole and found largely for the landlord: 2 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Flats 1, 3, 5, 9 and 10 Gablehurst, Poole Road, Upton, Poole
Decision date: 20 July 2021
Full decision: Read on GOV.UK

Managing agent named in the decision: Aster Group.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Major works (2020-21)£38,778.37£38,778.37Allowed in full—
Other charges (2020-21)£5,696£5,696Allowed in full—
Management fees (2020-21)£5,859.30£4,653.40ReducedFee excessive for service delivered
Major works (2021-22)£16,989.64£16,989.64Allowed in full—
Management fees (2021-22)—£2,038.76ReducedFee excessive for service delivered

Section 20C order: granted. Section 20ZA dispensation: conditional.

Key passages (verbatim)

“the Tribunal finds the sums expended to be reasonable in sum”
On major works
“Wessex Water at £5696 plus Pipefix at £38,778.37”
On other charges
“the Applicant reduced its requested management costs to a figure of 12%”
On management fees
“the Tribunal finds the sums expended to be reasonable in sum”
On major works
“12% of the Pipefix costs for each of the two years, being £4,653.40 and £2,038.76 respectively”
On management fees
“The Tribunal believes that the communication by the Applicant could have been better and earlier. It was not until the hearing of this application that there was any real clarity as to the sums involved. The stark realisation of the extent of and cost of the works came very late in the day to people, some of whom have been placed in a financial predicament.”
Of Synergy Housing Limited / Aster Group (Applicant)
“It is apparent that the landlord knew of the legal requirement to consult, and admitted during the proceedings that it so knew. Ms Towler indicated that it was not the practice of the Applicant to commence Section 20 consultation until the works specification was available, so as to ensure certainty of communication as to what was planned.”
Of Synergy Housing Limited / Aster Group (Applicant)
“The Tribunal understands and has sympathy with the Respondents, who were not consulted in the way that they would have been had the Applicant followed the Section 20 statutory consultation procedure and were then presented with the realisation that there would be hefty bills to pay for the works. The Tribunal would encourage the Applicant to introduce a proper system of sinking fund for the long leaseholders so that such surprises are not encountered again and to follow the advice in the Code when doing so.”
Of Synergy Housing Limited / Aster Group (Applicant)

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.