Decision summary

CHI/43UM/LSC/2021/0104 — service charge decision

In CHI/43UM/LSC/2021/0104, decided 21 March 2022, the First-tier Tribunal considered 14 disputed service charge items at Flat 51 Eastgate, Station Approach, Woking and reached a mixed result: 6 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Flat 51 Eastgate, Station Approach, Woking
Decision date: 21 March 2022
Full decision: Read on GOV.UK

Managing agent named in the decision: Pinnacle Property Management Limited.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Other charges (2018-2022)——Disallowed entirelyNot payable under the lease, Demand formally invalid
Other charges (2018-2022)——Allowed in full—
Gardening & grounds (2018-2022)——Disallowed entirelyLandlord could not evidence the cost
Other charges (2018-2022)—£3,704.55ReducedCosts unreasonably incurred (s19(1)(a)), Poor standard of work
Management fees (2018-2021)——Disallowed entirelyCosts unreasonably incurred (s19(1)(a)), Not payable under the lease, Landlord could not evidence the cost
Buildings insurance (2018-2021)——Allowed in full—
Management fees (2018-2022)——Disallowed entirelyFee excessive for service delivered, Costs unreasonably incurred (s19(1)(a))
Management fees (2023+)—£200ReducedFee excessive for service delivered
Cleaning (2018-2022)——Allowed in full—
Cleaning (2018-2022)——Allowed in full—
Utilities (2018-2022)——Allowed in full—
Other charges (2018-2022)——Allowed in full—
Lifts (2018-2022)——Allowed in full—
Other charges (2018-2022)——Allowed in full—

Section 20C order: granted.

Key passages (verbatim)

“the surveyor's involvement is a condition precedent to the demand for the estimated service charge and not having been so involved, there was no valid demand and the estimated sums are not (at present) payable.”
On other charges
“The demands (or repayments) of the differential between the estimated and final amounts were in accordance with the terms of the lease and are valid demands (or payments).”
On other charges
“There was no evidence before the Tribunal that the invoices submitted related to this property, such that the Tribunal finds them not to be payable.”
On gardening & grounds
“the Tribunal believes that the first year's expenditure of £3,704.55 should have been ample to solve the issues and limits recovery for the years in dispute to 2020/2021 to that amount.”
On other charges
“The Management Fees and Charges demanded in respect of freeholder costs are not payable for 2018 to December 2021 save for insurance for the building and its common parts.”
On management fees
“Insurance has been paid for the property. The Tribunal accepts the explanation of the Respondent that this has increased dramatically due to the cladding issue. The cost of insurance is payable by the Applicant.”
On buildings insurance
“so poor was the evidence provided by the Respondent that it could not even 'do its best' in some situations”
Of Respondent (Southern Housing Group)
“the communication of demands by the Respondent was so poor as to be almost unintelligible to anyone other than (and possibly including) its author.”
Of Respondent (Southern Housing Group)
“The accounting by both freeholder and Respondent leads the Tribunal to have very grave doubts as to its reliability.”
Of Freeholder and Respondent (Southern Housing Group)
“Rather oddly and wholly wrongly, the leaseholders have no way of knowing what the freeholder's costs are made up of.”
Of Respondent and Freeholder

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.