MAN/00BL/LSC/2021/0042 — service charge decision
In MAN/00BL/LSC/2021/0042, decided 7 November 2022, the First-tier Tribunal considered 8 disputed service charge items at 493 and 495 Leigh Road, Bolton BL5 2JH and reached a mixed result: 5 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 493 and 495 Leigh Road, Bolton BL5 2JH
Decision date: 7 November 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: Gateway Properties Limited (managed in-house via Regional Manager).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2018-19) | £584.40 | £278.40 | Reduced | Fee excessive for service delivered |
| Other charges (2019-20) | £502.40 | £239.40 | Reduced | Fee excessive for service delivered |
| Other charges (2020-21) | £162.05 | £119.80 | Reduced | Fee excessive for service delivered |
| Buildings insurance (2019-20) | £236.69 | £236.69 | Allowed in full | — |
| Buildings insurance (2020-21) | £265.44 | £265.44 | Allowed in full | — |
| Administration charges (2020-21) | £360 | £360 | Allowed in full | — |
| Legal & professional costs (2020-21) | £115 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2018-19) | — | — | Reduced | Fee excessive for service delivered |
Section 20C order: granted.
Key passages (verbatim)
“we have reduced the Management fee for the Apartments for the years in question to an annual amount of £100 (being £50 per apartment) – in addition to the out of hours charge – as we do not consider the full amount to have been reasonably incurred.”
“we have reduced the Management fee for the Apartments for the years in question to an annual amount of £100 (being £50 per apartment)”
“we have reduced the Management fee for the Apartments for the years in question to an annual amount of £100 (being £50 per apartment)”
“We considered the sum being charged for insurance and in our view this sum is both fair and reasonable. In the absence of any evidence to the contrary and in accordance with our own view as an expert Tribunal we therefore find this sum to be payable in full by the Respondent.”
“We considered the sum being charged for insurance and in our view this sum is both fair and reasonable.”
“the late payment charge and the issue fee charge are properly payable under the terms of the lease once the defect has been remedied.”
“the statement of anticipated Service Charge Expenditure [page 223] refers to a number of items which are not provided by the Applicant, including Window cleaning, Ground Maintenance and electricity to Common Parts.”
“whilst the anticipated charges are at best opaque, and equally unhelpfully continue to refer to these charges over multiple years”
“In respect of the Apartment Management fees we take a less generous view of the conduct of the management company, as it would appear that their conduct in respect of the preparation of the anticipatory budget has done little other than confuse the Respondent. We consider that the level of management carried out on behalf of the Respondent in the years in question was below that which could reasonably be expected”
“we were surprised that the accountants had not identified the anomaly in the anticipated charges as referred to above, we concluded that this was the responsibility of the management company, and not the accountants.”
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.