LON/00BK/LSC/2020/0368 — service charge decision
In LON/00BK/LSC/2020/0368, decided 7 April 2021, the First-tier Tribunal considered 15 disputed service charge items at Flat 6, 10 Hatherley Grove, London and reached a mixed result: 6 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 6, 10 Hatherley Grove, London
Decision date: 7 April 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Rayners Managing Agents.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2015/16) | £5,231 | £5,231 | Allowed in full | — |
| Repairs & maintenance (2015/16) | £1,116 | £1,116 | Allowed in full | — |
| Utilities (2015/16) | £183 | £183 | Allowed in full | — |
| Management fees (2015/16) | — | £108 | Reduced | Costs unreasonably incurred (s19(1)(a)), Fee excessive for service delivered |
| Other charges (2015/16) | £234 | £234 | Allowed in full | — |
| Legal & professional costs (2015/16) | £802 | £0 | Disallowed entirely | Not payable under the lease, Section 20B 18-month time limit |
| Buildings insurance (2016/17) | — | — | Allowed in full | — |
| Repairs & maintenance (2016/17) | £1,620 | £1,620 | Allowed in full | — |
| Management fees (2016/17) | — | £672 | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2016/17) | — | £0 | Disallowed entirely | Fee excessive for service delivered |
| Management fees (2017/18) | — | £0 | Withdrawn | — |
| Repairs & maintenance (2017/18) | — | — | Allowed in full | — |
| Buildings insurance (2018/19) | £5,749 | £5,305 | Reduced | Apportionment error |
| Management fees (2018/19) | — | £276 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Reserve fund contributions (2019/20) | £1,300 | £1,300 | Allowed in full | — |
Section 20ZA dispensation: granted.
Key passages (verbatim)
“The cost of insurance in this year was £5,231... we were generally satisfied as the reasonableness of the expenditure on insurance.”
“we concluded that all of the £1,116 was reasonable incurred.”
“The charge for communal electricity at £183 was supported by electricity bills”
“We allow £90, which is the standard hourly surveyor's charge used by Rayners, plus VAT (£108).”
“A charge of £234.00 was reasonably made for a fire risk assessment.”
“We do not consider that this sum is payable under the service charge... even if it was encompassed by the 27 March 2018 demand, that would have been outwith the time limit imposed by section 20B(1)”
“To ignore the proceedings, including communications from the Tribunal as well as the Applicants, falls considerably below the reasonable standard even for a litigant in person”
“the Respondent's complete failure to participate in the proceedings was 'negligent and reckless'”
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.