LON/00AR/LSC/2023/0346 — service charge decision
In LON/00AR/LSC/2023/0346, decided 21 May 2024, the First-tier Tribunal considered 12 disputed service charge items at Flat 3 Wingrove Court, 33 Oak Street, Romford RM7 7BS and reached a mixed result: 7 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 3 Wingrove Court, 33 Oak Street, Romford RM7 7BS
Decision date: 21 May 2024
Full decision: Read on GOV.UK
Managing agent named in the decision: Harford Management Limited / Harford Property Management Limited.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2019-20) | £302.92 | £302.92 | Allowed in full | — |
| Buildings insurance (2020-21) | £318.50 | £318.50 | Allowed in full | — |
| Buildings insurance (2021-22) | £350.26 | £350.26 | Allowed in full | — |
| Management fees (2019-20) | £452.50 | £190 | Reduced | Fee excessive for service delivered, Standard not reasonable (s19(1)(b)) |
| Management fees (2020-21) | £452.50 | £277.50 | Reduced | Not payable under the lease, Standard not reasonable (s19(1)(b)) |
| Management fees (2021-22) | £452.50 | £417.50 | Reduced | Not payable under the lease |
| Management fees (2022-23) | £452.50 | £452.50 | Allowed in full | — |
| Reserve fund contributions (2020-21) | £100 | £0 | Disallowed entirely | Not payable under the lease |
| Reserve fund contributions (2021-22) | £100 | £0 | Disallowed entirely | Not payable under the lease |
| Reserve fund contributions (2022-23) | £100 | £0 | Disallowed entirely | Not payable under the lease |
| Major works (2022) | £495 | — | Withdrawn | — |
| Administration charges | £200 | £0 | Disallowed entirely | Landlord could not evidence the cost |
Key passages (verbatim)
“The Tribunal decides that the Respondent is liable to pay the Applicant contributions of £302.92 (2019/20), £318.50 (2020/21), and £350.26 (2021/22) towards the costs of insuring the property.”
“The Tribunal decides that the Respondent is liable to pay the Applicant contributions of £302.92 (2019/20), £318.50 (2020/21), and £350.26 (2021/22) towards the costs of insuring the property.”
“The Tribunal decides that the Respondent is liable to pay the Applicant contributions of £302.92 (2019/20), £318.50 (2020/21), and £350.26 (2021/22) towards the costs of insuring the property.”
“the Tribunal finds that the fees are within the bounds of reasonable, however, there should be a 33.33 per cent reduction in the management fees for not being to the required standard… the Tribunal decides that charges of £760 have been reasonably incurred for the year 2019/2020. The Tribunal determines that the Respondent is liable to pay the Applicant a contribution of £190 for the service charge and management for the year 2019/2020.”
“Mr Barnes accepted that there was no authority under the lease to set aside a reserve fund. The Tribunal, therefore, disallows the £400 for reserve… The Tribunal, therefore, decides that on account charges of £1,110 for the year 2020/21 are no more than is reasonable. The Tribunal determines that the Respondent is liable to pay the Applicant a contribution of £277.50.”
“Mr Barnes accepted that there was no authority under the lease to set aside a reserve fund. The Tribunal, therefore, disallows the £400 for reserve… The Tribunal, therefore, decides that on account charges of £1,670 for the year 2021/22 are no more than is reasonable. The Tribunal determines that the Respondent is liable to pay the Applicant a contribution of £417.50.”
“The preparation of accounts for a three year period, and the demanding of the balancing charge for that three year period on 2 November 2020 indicated that the Applicant did not understand the requirements of the service charge machinery set out in the lease.”
“The Tribunal finds that the Applicant's failure to comply strictly with the terms of the lease in respect of the timing of demands caused confusion. Further the Tribunal would have expected the Applicant to have taken a more proactive stance in respect of the management of the property, particularly in relation to repairs and maintenance of the building.”
“Mr Barnes responding to the Tribunal's questions said that he had not prepared a programme of works for the property and had made no arrangements to tend the garden on a regular basis.”
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.