MAN/00BN/LSC/2022/0081-ET-AL — service charge decision
In MAN/00BN/LSC/2022/0081-ET-AL, decided 26 June 2023, the First-tier Tribunal considered 12 disputed service charge items at Wessex Lodge, 16, The Beeches, Manchester and reached a mixed result: 9 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Wessex Lodge, 16, The Beeches, Manchester
Decision date: 26 June 2023
Full decision: Read on GOV.UK
Managing agent named in the decision: Residential Management Group (RMG).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Repairs & maintenance (2018-19) | — | — | Disallowed entirely | Poor standard of work |
| Repairs & maintenance (2019) | — | — | Disallowed entirely | Works not necessary, Costs unreasonably incurred (s19(1)(a)) |
| Repairs & maintenance (2019-20) | — | — | Disallowed entirely | Poor standard of work |
| Other charges (2018-19) | — | — | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2018-19) | — | — | Allowed in full | — |
| Buildings insurance (2019-20) | — | — | Allowed in full | — |
| Utilities (2018-19) | — | — | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Utilities (2019-20) | — | — | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Legal & professional costs (2019-20) | — | — | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)), Other grounds |
| Other charges (2018-19) | — | — | Allowed in full | — |
| Management fees (2018-19) | — | — | Reduced | Fee excessive for service delivered, Other grounds |
| Management fees (2019-20) | — | — | Reduced | Fee excessive for service delivered, Other grounds |
Section 20C order: granted.
Key passages (verbatim)
“the damage caused to Apartment 8 was caused by works not carried out to a reasonable standard by RESCOM”
“RMG's decision not to carry out the works recommended by Form in April 2019 resulted in further works being required between August – December 2019 which were not therefore reasonably incurred”
“the repair to the entry gate was not carried out to a reasonable standard”
“there is no provision in the Lease permitting the charging of rental for the two car parking spaces as service charge”
“the insurance premiums for the 2018/19 and 2019/20 service charge years are reasonable and comprise relevant costs”
“the insurance premiums for the 2018/19 and 2019/20 service charge years are reasonable and comprise relevant costs”
“in view of the continuing relationship between the Applicant and RESCOM, it is surprising that the Applicant did not consider it appropriate to request them to effect the repairs at no or discounted cost prior to making an insurance claim”
“it is reasonable to assume that RMG, as experienced managing agents, will have understood the impact of a claim on future premiums”
“whatever the circumstances which led to an "out of contract" tariff being payable, it was not reasonable for RMG to allow that situation to continue for so long, even allowing for the refund adjustment in the following year”
“the Tribunal also accepts the Respondents' claim that the Applicant's conduct of the proceedings is a reflection of the poor record-keeping/account management by RMG”
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.