LON/00AH/LSC/2021/0073 — service charge decision
In LON/00AH/LSC/2021/0073, decided 8 July 2022, the First-tier Tribunal considered 21 disputed service charge items at 20 and 20a Hawthorn Avenue, Thornton Heath, London and reached a mixed result: 10 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 20 and 20a Hawthorn Avenue, Thornton Heath, London
Decision date: 8 July 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: Eagerstates Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2018) | £1,007.50 | £1,007.50 | Allowed in full | — |
| Buildings insurance (2019) | £1,036.22 | £1,036.22 | Allowed in full | — |
| Buildings insurance (2020) | £1,085.53 | £1,085.53 | Allowed in full | — |
| Utilities (2018) | £276.73 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)), Not payable under the lease |
| Repairs & maintenance (2018) | £2,336.40 | £1,556.40 | Reduced | Poor standard of work |
| Legal & professional costs (2018) | £180 | £180 | Allowed in full | — |
| Legal & professional costs (2019) | £180 | £180 | Allowed in full | — |
| Legal & professional costs (2020) | £210 | £210 | Allowed in full | — |
| Management fees (2018) | £564 | £500 | Reduced | Fee excessive for service delivered |
| Management fees (2019) | £568.80 | £500 | Reduced | Fee excessive for service delivered |
| Management fees (2020) | £568.80 | £500 | Reduced | Fee excessive for service delivered |
| Other charges (2019) | £114 | £114 | Allowed in full | — |
| Other charges (2020) | £246 | £246 | Allowed in full | — |
| Other charges (2019) | £240 | £240 | Allowed in full | — |
| Other charges (2020) | £252 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)) |
| Cleaning (2019) | £257.40 | £0 | Disallowed entirely | Not payable under the lease |
| Cleaning (2020) | £557.72 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2019) | £224.40 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2019) | £102 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)) |
| Legal & professional costs (2020) | £834 | £834 | Allowed in full | — |
| Legal & professional costs (2020) | £257.40 | £257.40 | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“the costs in relation to the insurance premium were reasonably incurred and are payable.”
“the costs in relation to the insurance premium were reasonably incurred and are payable.”
“the costs in relation to the insurance premium were reasonably incurred and are payable.”
“The costs were not reasonably incurred. Insofar as the electrical supply was taken from Ms Smart's flat, the installation is also outwith the lease.”
“The work was not carried out to a reasonable standard. A reasonable cost for work of this quality would be no more than £1,000 excluding VAT. The total charge for the work and the administration fee should be £1,556.40 including VAT.”
“the fees claimed for audit fees are reasonable in amount and payable.”
“when the way in which service charge demands (and, where they exist, accounts) makes it difficult for a tenant to determine what they are paying for, that is relevant to the reasonableness of a management fee. Similarly, Ms Smart was able to point to occasions when reasonable requests for information or to inspect documents had been ignored or refused. Apart from its inherent undesirability, a lack of transparency also makes conflict and litigation more likely.”
“Had the managing agents conducted themselves with greater transparency and engaged with the Applicants in a less hostile fashion, we consider that some at least of the issues need not have arisen.”
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.