MAN/00CB/LSC/2020/0024 — service charge decision
In MAN/00CB/LSC/2020/0024, decided 9 May 2021, the First-tier Tribunal considered 6 disputed service charge items at 181 Poulton Road, Wallasey and reached a mixed result: 3 items were reduced or disallowed. Full decision on GOV.UK below.
Property: 181 Poulton Road, Wallasey
Decision date: 9 May 2021
Full decision: Read on GOV.UK
Managing agent named in the decision: Moreland Estate Management (trading name of Moreland Estate Property Management Ltd).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Other charges (2019) | £15 | £15 | Allowed in full | — |
| Other charges (2019) | £175 | £0 | Disallowed entirely | Fee excessive for service delivered, Other grounds |
| Other charges (2019) | £1,200 | £300 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019) | £375 | £375 | Allowed in full | — |
| Buildings insurance (2019) | £800.66 | £800.66 | Allowed in full | — |
| Administration charges (2019) | £540 | £240 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
Key passages (verbatim)
“The Applicant included an invoice dated 2 October 2019 for a disbursement of £15.00 for bank charges for the period 1 January 2019 to 31 December 2019. Although the invoice was premature, the Tribunal allows the claim for £15.00.”
“the Tribunal takes the view that to the extent that such a charge may be properly payable under the service charge, it should be incorporated within the management fee for the property.”
“The Tribunal considers the fee of £1,200.00 to be excessive and applying its relevant knowledge and experience assesses that a reasonable cost for the work would be £300.00 inclusive of VAT.”
“The Tribunal does not consider an annual management fee, which is specifically provided for by clause 34(a)(vi) of the lease, of £375 relating to the management of two units of accommodation within a single property to be an unreasonable annual management fee and allows this cost.”
“the Tribunal is not satisfied that the Respondent's verbal reference to quotes obtained from comparison websites were 'like for like' and in the absence of further evidence, finds the insurance premium of £800.66 to be properly recoverable under the service charge provisions contained within the lease.”
“The Tribunal would allow the sum of £240 for the administration charge.”
“The Tribunal also notes the landlord's title to the property was entered at the Land Registry in December 2016 with the insurance cost assessment instructed only two years later in December 2018. The Tribunal is of the opinion that the landlord's managing agents should have considered a straightforward index based cost reassessment.”
“The Tribunal was not provided with a copy of the instructions given to Dunphy's.”
“The Applicant has not explained how the £30 charge has been calculated.”
“The Respondent has not explained how the charge of £450 made for the letter before action is calculated. There is no information about the time taken or the charge rate applied.”
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.