MAN/00CM/LSC/2020/0034 — service charge decision
In MAN/00CM/LSC/2020/0034, decided 11 March 2022, the First-tier Tribunal considered 31 disputed service charge items at Ashbrooke Mews, 1-4 Ashbrooke Terrace, Sunderland and reached a mixed result: 12 items were reduced or disallowed. Full decision on GOV.UK below.
Property: Ashbrooke Mews, 1-4 Ashbrooke Terrace, Sunderland
Decision date: 11 March 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: Kingston Property Services.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Buildings insurance (2014-15) | £1,304.84 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2014-15) | £4,000.09 | £4,000.09 | Allowed in full | — |
| Cleaning (2014-15) | £1,854 | £1,854 | Allowed in full | — |
| Management fees (2014-15) | £2,896.39 | £1,822.50 | Reduced | Costs unreasonably incurred (s19(1)(a)) |
| Other charges (2014-15) | £450 | £0 | Disallowed entirely | Costs unreasonably incurred (s19(1)(a)) |
| Buildings insurance (2015-16) | £4,168.97 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2015-16) | £2,092.53 | £2,092.53 | Allowed in full | — |
| Cleaning (2015-16) | £1,320 | £1,320 | Allowed in full | — |
| Repairs & maintenance (2015-16) | £5,198.07 | £5,198.07 | Allowed in full | — |
| Buildings insurance (2016-17) | £13,718.88 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2016-17) | £669.44 | £669.44 | Allowed in full | — |
| Management fees (2016-17) | £1,620 | £1,620 | Allowed in full | — |
| Repairs & maintenance (2016-17) | £4,122.67 | £4,122.67 | Allowed in full | — |
| Buildings insurance (2017-18) | £12,918.02 | £0 | Disallowed entirely | Not payable under the lease |
| Buildings insurance (2018-19) | £2,232.74 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2018-19) | £723.92 | £723.92 | Allowed in full | — |
| Legal & professional costs (2018-19) | £2,742.74 | £2,742.74 | Allowed in full | — |
| Buildings insurance (2019-20) | £5,268.44 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2019-20) | £1,195.35 | £1,195.35 | Allowed in full | — |
| Legal & professional costs (2019-20) | £240.36 | £90.36 | Reduced | Not payable under the lease |
| Other charges (2019-20) | £334.97 | £0 | Disallowed entirely | Not payable under the lease |
| Repairs & maintenance (2019-20) | £1,035.68 | £1,035.68 | Allowed in full | — |
| Buildings insurance (2020-21) | £3,507.43 | £0 | Disallowed entirely | Not payable under the lease |
| Utilities (2020-21) | £327.33 | £327.33 | Allowed in full | — |
| Cleaning (2020-21) | £621.60 | £621.60 | Allowed in full | — |
| Management fees (2020-21) | £1,221.96 | £1,221.96 | Allowed in full | — |
| Other charges (2020-21) | £354 | £354 | Allowed in full | — |
| Legal & professional costs (2020-21) | £2,400 | £1,500 | Reduced | Not payable under the lease |
| Repairs & maintenance (2020-21) | £1,113.59 | £1,113.59 | Allowed in full | — |
| Other charges (2020-21) | £568.59 | £568.59 | Allowed in full | — |
| Other charges (2020-21) | £1,418.93 | £1,418.93 | Allowed in full | — |
Section 20C order: granted.
Key passages (verbatim)
“Buildings Insurance premiums for the service charge years 2014/15 to 2020/21 (inclusive) are not recoverable as service charge under the terms of the Applicants' leases.”
“the tribunal considered, on the evidence before it, that the communal electricity charges were reasonable and payable.”
“On the information before the tribunal the cleaning costs were reasonable and payable.”
“the tribunal considered that it was unreasonable for the Respondent to incur and charge to the leaseholders a fee for 2014/15 exceeding the annual fee for either agent.”
“if the Respondent chose to engage a managing agent out of the area to manage the Property, it was unreasonable to pass on to the Applicants a significant cost of this nature.”
“Buildings Insurance premiums for the service charge years 2014/15 to 2020/21 (inclusive) are not recoverable as service charge under the terms of the Applicants' leases.”
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.