LON/00AG/LSC/2020/0316 — service charge decision
In LON/00AG/LSC/2020/0316, decided 8 June 2021, the First-tier Tribunal considered 9 disputed service charge items at Flat 1, 31 Broadhurst Gardens, London NW6 3QT and reached a mixed result: 2 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 1, 31 Broadhurst Gardens, London NW6 3QT
Decision date: 8 June 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Warwick Estates Property Management Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Management fees (2019) | — | — | Allowed in full | — |
| Administration charges (2019) | £390 | £0 | Disallowed entirely | Not payable under the lease |
| Administration charges (2020) | £485 | £0 | Disallowed entirely | Not payable under the lease |
| Repairs & maintenance (2019) | — | — | Allowed in full | — |
| Gardening & grounds (2019) | — | — | Allowed in full | — |
| Reserve fund contributions (2019) | — | — | Allowed in full | — |
| Reserve fund contributions (2020) | £553.75 | £553.75 | Allowed in full | — |
| Other charges (2019) | £186 | £186 | Allowed in full | — |
| Other charges (2019) | £95 | £95 | Allowed in full | — |
Section 20C order: refused.
Key passages (verbatim)
“We prefer Mr Sinclair's interpretation of the lease in this regard. We read the paragraph at the Fifth Schedule 1(1)(b) to mean that there is the alternative of either the cost of employing managing agents on a commission, or in the alternative, a charge of 10% if the lessor does not to employ managing agents and carried out the work itself. Accordingly, the fee claimed by Warwick is payable and no alternative was suggested.”
“The directors' insurance does not appear in the service charge income and expenditure account for 2019 but the company secretary fees of £390 do. We therefore disallow those for 2019 in the sum of £390.”
“In the estimated account for 2020 at page 367 the sum of £402 is shown as the company secretary fee and £83 for directors and officers' insurance We therefore disallow both for this year.”
“we therefore reject Mr Akbar's arguments that those estimated costs in respect of cleaning, general repairs and gutter maintenance are irrecoverable.”
“we therefore reject Mr Akbar's arguments that those estimated costs in respect of cleaning, general repairs and gutter maintenance are irrecoverable.”
“Hence in our view our further finding that the reserve fund contributions are wholly reasonable. We have already recounted above the amounts that have been estimated by Day & Associates for the works to the Property and it is quite clear, therefore, that a substantial reserve fund will be of benefit to all leaseholders.”
“To come to a hearing of this nature without the witness statement that he had made and no access to the bundle of documents is unforgiveable. It appeared that he had little interest in the proceedings and many of his answers were given in a somewhat off-hand and unhelpful manner.”
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.