CHI/24UH/LSC/2020/0055 — service charge decision
In CHI/24UH/LSC/2020/0055, decided 4 January 2021, the First-tier Tribunal considered 17 disputed service charge items at Flat 60 The Gate House, 354 Seafront, Hayling Island and reached a mixed result: 13 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 60 The Gate House, 354 Seafront, Hayling Island
Decision date: 4 January 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Daniells Harrison.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Staffing & concierge (2019/2020) | £436.65 | £260.27 | Reduced | No Section 20 consultation, Costs unreasonably incurred (s19(1)(a)) |
| Staffing & concierge (2020/2021) | £521.74 | £250 | Reduced | No Section 20 consultation, Costs unreasonably incurred (s19(1)(a)) |
| Utilities (2019/2020) | £466.96 | £284.30 | Reduced | Costs unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost |
| Utilities (2020/2021) | £391.30 | £391.30 | Allowed in full | — |
| Other charges (2019/2020) | — | £0 | Disallowed entirely | Not payable under the lease, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2020/2021) | — | £0 | Disallowed entirely | Not payable under the lease |
| Repairs & maintenance (2019/2020) | — | £121.11 | Reduced | Costs unreasonably incurred (s19(1)(a)), Duplication of charges |
| Repairs & maintenance (2020/2021) | — | £130.43 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Gardening & grounds (2019/2020) | — | £250 | Reduced | No Section 20 consultation, Costs unreasonably incurred (s19(1)(a)), Apportionment error |
| Gardening & grounds (2020/2021) | £221.74 | £221.74 | Allowed in full | — |
| Cleaning (2020/2021) | £113.04 | £95.65 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019/2020) | £334.92 | £300 | Reduced | Fee excessive for service delivered |
| Management fees (2020/2021) | £330.43 | £300 | Reduced | Fee excessive for service delivered |
| Other charges (2019/2020) | — | £29.35 | Allowed in full | — |
| Other charges (2020/2021) | — | £30.43 | Reduced | — |
| Buildings insurance (2020/2021) | £227.39 | £227.39 | Allowed in full | — |
| Reserve fund contributions (2020/2021) | £554.35 | £250 | Reduced | No Section 20 consultation, Costs unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost |
Section 20C order: granted. Section 20ZA dispensation: refused.
Key passages (verbatim)
“The Tribunal accepts that a reasonable charge for the provision of the Warden which includes 'emergency cover', would be £5,750 per annum … the Tribunal is minded to allow the equivalent of an annual charge of £5,750 for the period between 1 April 2019 and 21 November 2019 (234 days) plus £100 … The Respondent can therefore recover £260.27.”
“The Tribunal has no alternative but to limit the amount it considers reasonable to £250 per leaseholder which amounts to a budgeted figure of £5,750 (£250 x 23).”
“The actual cost of the electricity is now stated in the draft accounts so the Tribunal determines that the Applicant's share of the cost of electricity for this period shall be calculated by reference to that amount and she is liable to pay £284.30 for 2019/2020.”
“The Tribunal, taking into account that consumption may be lower during April and July, determines that the amount shown in the budget is reasonable.”
“The Tribunal determines that the Applicant is not liable to pay anything towards the provision of the communal lounge in 2019/2020.”
“For the reasons set out in paragraph 96 above, the Tribunal determines that the Applicant is not liable to make any payment on account for the use of the Communal Lounge.”
“Mr Jenkins repeatedly, in his correspondence and in his Statement of case [1RB1] justified charges as reasonable without providing any explanation, evidence or supporting documentation. He did not explain on what empirical evidence his statement was based.”
“the Tribunal concluded, that Daniells Harrison has not supplied a service which justifies each leaseholder paying around £360 a year for the combined services of Management and accounting.”
“The information and evidence provided by Mr Jenkins demonstrate a somewhat haphazard approach to management. The documents supplied after the Hearing were also disordered and incomplete.”
“The statements made by both Amanda Rickwood and Mr Jenkins that any overpayments would be recredited to the service charge account are untrue.”
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.