LON/00AH/LSC/2023/0422 — service charge decision
In LON/00AH/LSC/2023/0422, decided 10 September 2024, the First-tier Tribunal considered 16 disputed service charge items at 9A and 9B Crowther Road, London, SE25 5QW and found largely for the leaseholder: 16 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 9A and 9B Crowther Road, London, SE25 5QW
Decision date: 10 September 2024
Full decision: Read on GOV.UK
Managing agent named in the decision: BLR Property Management Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2017-18) | £1,990.79 | £1,253.70 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2018-19) | £2,117.70 | £1,319.68 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2019-20) | £3,403.39 | £1,389.14 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2020-21) | £3,618.82 | £1,458.60 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2021-22) | £3,158.31 | £1,463 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2022-23) | £3,333.09 | £1,536.15 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2023-24) | £3,715.40 | £1,612.96 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2024-25) | — | £1,693.61 | Reduced | Insurance not market tested, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2017-18) | — | £300 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2018-19) | — | £315 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019-20) | — | £330.74 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2020-21) | — | £347.28 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2021-22) | — | £364.46 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2022-23) | — | £382.88 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2023-24) | — | £402.02 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2024-25) | — | £422.12 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
Section 20C order: granted.
Key passages (verbatim)
“The Tribunal found that the insurance premiums were not reasonable. In particular, the Tribunal found that the sum insured was excessive and that the insurance cover provided by the Respondent as part of their block policy was unsuitable for the Property.”
“The Tribunal calculated what would be reasonable by taking the average of the three quotes obtained for the period September 2019/20 (£1,389.14) and then reducing this figure by 5% to give the September 2018/19 total (£1,319.68).”
“The Tribunal calculated what would be reasonable by taking the average of the three quotes obtained for the period September 2019/20 (£1,389.14)”
“To reach the September 2020/21 figure the 2019/20 figure was increased by 5%.”
“For September 2021/22 as only one quote was available, the Tribunal increased the amount by 5% rather than relying on the quote.”
“For September 2022/23 the comparative quote was used”
“The block policy therefore resulted in the Property being over-insured and an excessively high premium charged. The Applicants were being charged a management fee and it would therefore have been incumbent upon the Respondent to ensure that the insurance obtained for the Property was suitable.”
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.