CHI/21UD/LSC/2020/0061 — service charge decision
In CHI/21UD/LSC/2020/0061, decided 19 March 2021, the First-tier Tribunal considered 21 disputed service charge items at Flats at Southview Court, Old London Road, Hastings, East Sussex and reached a mixed result: 17 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flats at Southview Court, Old London Road, Hastings, East Sussex
Decision date: 19 March 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: SE Estates and Agency Management Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2015-16) | £8,717.09 | £8,717.09 | Allowed in full | — |
| Administration charges (2015-16) | — | £4,225.89 | Reduced | Not payable under the lease, Other grounds |
| Buildings insurance (2016-17) | — | £4,462.64 | Allowed in full | — |
| Administration charges (2016-17) | — | £2,466.33 | Reduced | Not payable under the lease, Other grounds |
| Gardening & grounds (2016-17) | — | £6,300 | Reduced | Poor standard of work, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2016-17) | — | £10,364.47 | Reduced | Costs unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Poor standard of work |
| Legal & professional costs (2016-17) | £1,980 | £0 | Disallowed entirely | Not payable under the lease, Landlord could not evidence the cost |
| Buildings insurance (2017-18) | — | £16,338.04 | Allowed in full | — |
| Administration charges (2017-18) | — | £3,481.61 | Reduced | Not payable under the lease, Other grounds |
| Gardening & grounds (2017-18) | — | £6,300 | Reduced | Poor standard of work, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2017-18) | — | £7,257.81 | Reduced | Costs unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Poor standard of work |
| Other charges (2017-18) | £1,400 | £950 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2017-18) | £3,530 | £1,000 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Legal & professional costs (2017-18) | £2,286 | £1,386 | Reduced | Landlord could not evidence the cost |
| Other charges (2017-18) | £247.02 | £0 | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2018-19) | — | £12,500 | Allowed in full | — |
| Administration charges (2018-19) | — | £4,233.95 | Reduced | Not payable under the lease, Other grounds |
| Gardening & grounds (2018-19) | — | £6,300 | Reduced | Poor standard of work, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2018-19) | — | £16,527.50 | Reduced | Costs unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost |
| Legal & professional costs (2018-19) | — | £0 | Disallowed entirely | Landlord could not evidence the cost |
| Management fees (2018-19) | £3,530 | £1,000 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
Section 20C order: granted.
Key passages (verbatim)
“The Respondent's policy is with a reputable insurer and covers an acceptable range of risks and had been assessed in relation to a recent re-valuation of the property. The Tribunal therefore finds that this sum is reasonable and allowed in full.”
“the Respondent has calculated his percentage on a total sum which includes £2,379.40 attributable to ground rents… the Respondent has charged the fee at 12.5% plus VAT whereas the lease only permits a maximum of 10%”
“Similar arguments apply to subsequent years which are also allowed in full.”
“Similar arguments and deductions apply to subsequent years as shown on the attached schedule.”
“the appalling proliferation of weeds, rubbish, well established saplings growing in drains, lamp standards lying on the ground etc shown in these photographs demonstrate that maintenance of the grounds must have been of a very poor quality for a number of years. On that basis it reduces the sum allowed to £6,300”
“the Tribunal allow only 50% of the sum claimed (£10,364.47) in respect of repairs for this year”
“The addition of a surcharge would be a wholly unacceptable practice which should be ceased forthwith.”
“Not only is this practice unacceptable, the addition of the ground rents to the service charge has the effect of inflating the amount of the service charge and thus also of the administration charge made by the Respondent”
“His reluctance to provide information to the Applicants whether requested by them or ordered by the Tribunal has both complicated this case and extended the time needed to deal with it.”
“It is evident from the evidence produced by the Respondent that bookkeeping was not his forte”
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.