CHI/45UG/LSC/2022/0009 — service charge decision
In CHI/45UG/LSC/2022/0009, decided 3 August 2022, the First-tier Tribunal considered 20 disputed service charge items at 3 Pine Trees Court, Hassocks, West Sussex and reached a mixed result: 12 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 3 Pine Trees Court, Hassocks, West Sussex
Decision date: 3 August 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: Hunters Managing Agents.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Cleaning (2019-20) | £1,998 | £1,950 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Utilities (2019-20) | £489 | £489 | Allowed in full | — |
| Gardening & grounds (2019-20) | £4,156 | £4,156 | Allowed in full | — |
| Repairs & maintenance (2019-20) | £320 | £0 | Disallowed entirely | Landlord could not evidence the cost |
| Buildings insurance (2019-20) | £2,995 | £2,777.44 | Reduced | Not payable under the lease |
| Management fees (2019-20) | £3,314 | £2,712.60 | Reduced | Not payable under the lease, Fee excessive for service delivered |
| Other charges (2019-20) | £11 | £11 | Allowed in full | — |
| Repairs & maintenance (2019-20) | £3,175 | £3,169.45 | Reduced | Landlord could not evidence the cost |
| Cleaning (2019-20) | £900 | £0 | Disallowed entirely | Not payable under the lease |
| Legal & professional costs (2020-21) | £654 | £654 | Allowed in full | — |
| Other charges (2020-21) | £1 | £0 | Disallowed entirely | Landlord could not evidence the cost |
| Cleaning (2020-21) | £2,262 | £1,950 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Utilities (2020-21) | £819 | £590.08 | Reduced | Landlord could not evidence the cost |
| Gardening & grounds (2020-21) | £4,968 | £4,968 | Allowed in full | — |
| Buildings insurance (2020-21) | £3,288 | £3,059.56 | Reduced | Not payable under the lease |
| Management fees (2020-21) | £3,416 | £2,469.91 | Reduced | Not payable under the lease, Fee excessive for service delivered |
| Other charges (2020-21) | £36 | £36 | Allowed in full | — |
| Other charges (2020-21) | £19 | £19 | Allowed in full | — |
| Cleaning (2020-21) | £1,080 | £0 | Disallowed entirely | Not payable under the lease |
| Reserve fund contributions (2021-22) | — | — | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“The Tribunal determines that the sum of £48.00 is not payable and, accordingly, determines a sum of £1,950.00 as reasonable and payable in accordance with the lease.”
“the Tribunal, doing the best it can, finds the stated costs of £489.00, which the Tribunal are advised are net of garage revenue, to be reasonable and payable.”
“the Tribunal find the sum of £4,156.00 reasonable and payable in accordance with the lease.”
“In the absence of any evidence to substantiate the costs incurred, the Tribunal determines the cost of £320.00 as unreasonable and not reasonably incurred. Accordingly, the Tribunal reduces this charge to nil.”
“the Tribunal finds that the D&O costs are not recoverable under the provisions of the lease and reduces such costs to nil, resulting in a total sum recoverable under the lease for insurance as £2,777.44.”
“the Tribunal having weighed up its findings, and omitting Company Secretary fees of £250.00 plus VAT, reduces the Managing Agent's fees by 10 per cent to arrive at an amount that is reasonably incurred, that being the sum of £2,712.60.”
“The Tribunal finds the service provided by the Managing Agent falls short in a number of areas. By their own admission, invoices were omitted from evidence, whilst further invoices were unaccounted for; the Managing Agent failed to co-operate fully with the applicant during disclosure; internal accounting practices lack transparency and, in their own words, are confusing; unauthorised costs e.g. disinfectant costs, were paid without sufficient verification; electricity revenue was inadequately accounted for; and company expenditure was paid from service charge revenue.”
“we take note of the Managing Agents lack of full disclosure both to the applicant and during these proceedings, and their lack of clarity in oral evidence.”
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.