LON/00AZ/LSC/2020/0276 — service charge decision
In LON/00AZ/LSC/2020/0276, decided 22 November 2021, the First-tier Tribunal considered 6 disputed service charge items at 27B Brockley Grove, London, SE4 1QX and found largely for the leaseholder: 3 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 27B Brockley Grove, London, SE4 1QX
Decision date: 22 November 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: BLR Property Management Ltd.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2018-19) | £848.01 | £848.01 | conceded | — |
| Management fees (2018-19) | £640 | £540 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2019-20) | £180 | £180 | conceded | — |
| Buildings insurance (2019-20) | £1,007.55 | £1,007.55 | conceded | — |
| Legal & professional costs (2019-20) | £4,200 | £0 | Disallowed entirely | Not payable under the lease, Landlord could not evidence the cost |
| Management fees (2019-20) | £657.41 | £558 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
Section 20C order: granted.
Key passages (verbatim)
“the Applicant said that he now accepted the sums for insurance and accountancy fees”
“The management fees charged are unreasonable in amount. A fee of £270 and £279 should be substituted for the years ending March 2019 and March 2020 respectively.”
“the Applicant said that he now accepted the sums for insurance and accountancy fees”
“the Applicant said that he now accepted the sums for insurance and accountancy fees”
“We reject the Respondent's contention that legal fees must be recoverable under the heading of 'management costs' in the lease … it is difficult to find a case in which litigation legal costs have been found to be recoverable under the heading of 'management' without more.”
“The management fees charged are unreasonable in amount. A fee of £270 and £279 should be substituted for the years ending March 2019 and March 2020 respectively.”
“it was not so clear to us that Mr Galliers was in a position to deal with the issue of legal fees in the year ending March 2020, despite the fact that they constituted by far the largest item in either year … Mr Galliers was, however, unable to provide us with any details as to what the fees consisted of.”
“there was a lack of specificity in the application, and that this had not been sufficiently clarified before the hearing.”
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.