MAN/00CJ/LSC/2019/0032 — service charge decision
In MAN/00CJ/LSC/2019/0032, decided 15 July 2020, the First-tier Tribunal considered 22 disputed service charge items at Various Apartments at Ettrick Lodge, 36 The Grove, Newcastle upon Tyne and reached a mixed result: 7 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Various Apartments at Ettrick Lodge, 36 The Grove, Newcastle upon Tyne
Decision date: 15 July 2020
Full decision: Read on GOV.UK
Managing agent named in the decision: Residential Management Group Limited (RMG).
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2017/18) | — | — | Allowed in full | — |
| Other charges (2017/18) | £1,975 | £1,975 | Allowed in full | — |
| Other charges (2018/19) | £3,089 | £3,089 | Allowed in full | — |
| Other charges (2019/20) | £2,600 | £2,600 | Allowed in full | — |
| Gardening & grounds (2017/18) | £4,070 | £0 | conceded | Other grounds |
| Repairs & maintenance (2017/18) | £900 | £450 | Reduced | Poor standard of work, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2017/18) | £6,329 | £6,329 | Allowed in full | — |
| Repairs & maintenance (2017/18) | £493 | £0 | Disallowed entirely | Not payable under the lease |
| Legal & professional costs (2017/18) | — | — | Allowed in full | — |
| Utilities (2018/19) | — | £2,413 | Reduced | Other grounds |
| Lifts (2018/19) | £513 | £513 | Allowed in full | — |
| Utilities (2018/19) | £6,144 | £5,286.65 | Reduced | Other grounds |
| Legal & professional costs (2019/20) | £240 | £240 | Allowed in full | — |
| Management fees (2017/18) | — | — | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2018/19) | — | — | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Management fees (2019/20) | — | — | Reduced | Fee excessive for service delivered, Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2017/18) | £281 | £0 | conceded | Other grounds |
| Other charges (2019/20) | £375 | £0 | conceded | Other grounds |
| Staffing & concierge (2017/18) | — | £17,203.39 | conceded | Apportionment error |
| Staffing & concierge (2018/19) | — | £17,893.62 | conceded | Apportionment error |
| Staffing & concierge (2019/20) | — | £13,161.82 | conceded | Apportionment error |
| Other charges (2017/18) | £648.39 | £0 | conceded | Other grounds |
Section 20C order: granted.
Key passages (verbatim)
“insurance being prudent and required by the Lease they are reasonably incurred costs. There was no evidence presented to suggest the revaluation valuations were incorrect, or to suggest premiums were excessive”
“supporting invoices for the sums involved were produced and their authenticity was not challenged. The Applicant did not present evidence to support his concern that unnecessary works had been undertaken.”
“supporting invoices for the sums involved were produced and their authenticity was not challenged. The Applicant did not present evidence to support his concern that unnecessary works had been undertaken.”
“supporting invoices for the sums involved were produced and their authenticity was not challenged.”
“The costs in the 2017/18 accounts represented an accrual. Invoices were expected to the value of £4,070. No invoices were subsequently received; the accrual was reversed in 2018/19. In effect, nil costs were incurred in that year or the year following.”
“The Tribunal saw on inspection evidence of potholes to the carpark area, which we considered were new or had reappeared due to poor repair work... the full amount incurred could not be reasonable because of that condition. Therefore the Tribunal determined the reasonable amount to be limited to £450, inclusive of any VAT.”
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.