Decision summary

LON/00BJ/LSC/2020/0225 — service charge decision

In LON/00BJ/LSC/2020/0225, decided 31 March 2021, the First-tier Tribunal considered 12 disputed service charge items at Rear Flat 42 Lavender Hill, London SW11 5RL and reached a mixed result: 4 items were reduced or disallowed. Full decision on GOV.UK below.

Property: Rear Flat 42 Lavender Hill, London SW11 5RL
Decision date: 31 March 2021
Full decision: Read on GOV.UK

Managing agent named in the decision: ABC.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Buildings insurance (2015)Disallowed entirelyDemand formally invalid
Buildings insurance (2016)Allowed in full
Management fees (2015-2016)£1,440£1,440Allowed in full
Repairs & maintenance (2015-2020)Allowed in full
Reserve fund contributions (2015-2020)concededNot payable under the lease
Other charges (2015-2016)Reduced
Administration charges (2015-2016)£75£0ReducedCosts unreasonably incurred (s19(1)(a))
Legal & professional costs (2015-2020)Allowed in full
Legal & professional costs (2015-2020)Allowed in full
Major works (2015-2020)£2,160£2,160Allowed in full
Repairs & maintenance (2015-2020)£176.40£176.40Allowed in full
Other charges (2015-2020)Disallowed entirelyNot payable under the lease

Section 20C order: partial.

Key passages (verbatim)

“There was apparently no demand made for insurance in 2015 and therefore those sums cannot be due.”
On buildings insurance
“Other than that the insurance charges appear to the tribunal to be reasonable. The Applicants did not put forward any comparable to support their proposition that the insurance charges were not reasonable.”
On buildings insurance
“The Tribunal consider that the management fee was reasonable throughout the period. The Applicants failed to provide any comparables to suggest otherwise.”
On management fees
“It is the Tribunal's determination that the repairs and maintenance charges were reasonable.”
On repairs & maintenance
“There was no provision in the lease allowing collection for a reserve fund (conceded by the Respondents).”
On reserve fund contributions
“A contingency is in fact a just in case amount. It is not unusual for such sums to be collected as part of the service charge. In this case the service charge provisions are wide enough to include contingency sums.”
On other charges
“The Tribunal became increasingly frustrated during the preparation of the case for hearing because the parties were unable to agree anything.”
Of Both parties
“In passing the tribunal finds this remarkable. Patently some sums were due and it was incumbent on the Applicants to pay the sums that they considered where owing.”
Of Applicants
“The Applicants have largely been unsuccessful in this application.”
Of Applicants

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.