Decision summary

LON/00AZ/LSC/2022/0240 — service charge decision

In LON/00AZ/LSC/2022/0240, decided 6 February 2024, the First-tier Tribunal considered 22 disputed service charge items at Flats 212 & 86 River Mill One, Station Road, London SE13 5FS and reached a mixed result: 11 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Flats 212 & 86 River Mill One, Station Road, London SE13 5FS
Decision date: 6 February 2024
Full decision: Read on GOV.UK

Managing agent named in the decision: JFM Block and Estate Management LLP.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Staffing & concierge (2017-2021)£70,000ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Other charges (2017-2021)Allowed in full
Legal & professional costs (2017-2021)Allowed in full
Legal & professional costs (2017-2020)Disallowed entirelyCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Utilities (2017-2021)Withdrawn
Administration charges (2017-2021)Withdrawn
Other charges (2017-2021)£3,000ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Other charges (2019)£5,270£1,000ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Other charges (2017-2021)£12,000ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Works not necessary
Repairs & maintenance (2017-2018)£8,650ReducedCosts unreasonably incurred (s19(1)(a)), Works not necessary
Repairs & maintenance (2019-2021)£12,000ReducedCosts unreasonably incurred (s19(1)(a)), Works not necessary
Cleaning (2017-2021)Allowed in full
Cleaning (2019)£4,500£1,000ReducedCosts unreasonably incurred (s19(1)(a))
Other charges (2017-2021)Disallowed entirelyCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost
Cleaning (2017-2021)Allowed in full
Gardening & grounds (2017-2021)Withdrawn
Other charges (2017-2021)Withdrawn
Repairs & maintenance (2017-2021)£45,000ReducedCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Works not necessary
Other charges (2017-2021)Disallowed entirelyCosts unreasonably incurred (s19(1)(a)), Landlord could not evidence the cost, Works not necessary
Buildings insurance (2017-2021)Allowed in full
Repairs & maintenance (2017-2021)conceded
Management fees (2017-2021)Allowed in full

Section 20C order: granted.

Key passages (verbatim)

“it was agreed that the total staff costs will be limited to a maximum of £70,000 per annum because there is no evidence before the Tribunal justifying an increase above this figure from year to year”
On staffing & concierge
“the Tribunal finds that the service charge costs under this heading are reasonable and payable in the service charge years which form the subject of this application.”
On other charges
“the Tribunal finds that the service charge costs under this heading are reasonable and payable in the service charge years which form the subject of this application.”
On legal & professional costs
“the Tribunal is therefore not satisfied on the balance of probabilities that any of the costs under this heading were reasonably incurred or that they are reasonable in amount. Accordingly, the Tribunal finds that no costs under this heading are payable”
On legal & professional costs
“Mr Jeffrey stated that he is no longer challenging the costs under this heading.”
On utilities
“Mr Jeffrey stated that he is no longer challenging the costs under this heading.”
On administration charges
“The staff costs have fluctuated considerably without any satisfactory explanation. The evidence given on this issue was purely speculative.”
Of Second and Third Respondents / previous managing agents
“taking into account all of the findings set out above and the speculative nature of much of the Second and Third Respondent's evidence, the Tribunal exercises its discretion to order the Second and Third Respondents to reimburse the Tribunal fees which Mr Jeffrey has paid.”
Of Second and Third Respondents
“Mr Robertson did not know why the sums which should have been covered by warranty were charged to the service charge account by the previous managing agents.”
Of Previous managing agents
“he did not know why a claim had not been made against the warranty in respect of these costs.”
Of Previous managing agents (communal heating)

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.