CHI/29UN/LSC/2020/0115 — service charge decision
In CHI/29UN/LSC/2020/0115, decided 25 August 2021, the First-tier Tribunal considered 3 disputed service charge items at Arlington House, All Saints Avenue, Margate, Kent and reached a mixed result: 2 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Arlington House, All Saints Avenue, Margate, Kent
Decision date: 25 August 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Parsons Son & Basley.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Major works (2020-21) | £648,720 | £535,000 | Reduced | Costs unreasonably incurred (s19(1)(a)), Works not necessary |
| Legal & professional costs (2020-21) | £24,000 | £24,000 | Allowed in full | — |
| Management fees (2020-21) | £16,218 | £8,025 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
Section 20C order: granted.
Key passages (verbatim)
“The Tribunal, therefore, decides that a sum of £535,000 plus VAT is no greater amount than is reasonable for the costs of the refurbishment of the lifts. The Tribunal has arrived at £535,000 by adding the estimated costs of £16,000 for automatic rescue and £20,000 for fire safety to the basic estimate of £499,000 proposed by Mr Smith.”
“The Tribunal having regard to the evidence of Mr Smith on the necessity for a consulting engineer and the associated roles of Principal Designer (CDM Regulations) and Contract Administrator decides that a fixed sum of £24,000 plus VAT is no greater amount than is reasonable.”
“The Tribunal is not convinced about the reasonableness of the costs of the managing agent which was calculated at 2.5 per cent of the contract price... The Tribunal applying its general knowledge and expertise considers an amount of £8,025 (1.5 per cent of the contract price) plus VAT is reasonable.”
“The Tribunal is not convinced about the reasonableness of the costs of the managing agent which was calculated at 2.5 per cent of the contract price.”
“The Tribunal notes that there has been no statutory consultation on these works, and that the preparation of the demands would be within the standard costs of a managing agent.”
“the necessity for the proceedings has been in part due to the Respondent's delay in not carrying out the works to the lifts earlier”
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.