MAN/00EC/LSC/2021/0078 — service charge decision
In MAN/00EC/LSC/2021/0078, decided 2 November 2022, the First-tier Tribunal considered 2 disputed service charge items at Flat 54, Maddren Way, Middlesbrough and reached a mixed result: 1 item was reduced or disallowed. Full decision on GOV.UK below.
Property: Flat 54, Maddren Way, Middlesbrough
Decision date: 2 November 2022
Full decision: Read on GOV.UK
Managing agent named in the decision: First Management Ltd. t/a Hurst Managements.
What was challenged and what the tribunal decided
| Item | Demanded | Allowed | Outcome | Grounds |
|---|---|---|---|---|
| Reserve fund contributions (2020-21) | £39,616 | £24,334 | Reduced | Costs unreasonably incurred (s19(1)(a)), Other grounds |
| Administration charges (2020-21) | £1,162.50 | £1,162.50 | Allowed in full | — |
Key passages (verbatim)
“The reasonable costs to replace the cladding, based on the 2022 quote, are £46,035.00. Of this sum, 50% is the reasonable figure to have been claimed in the service charge demand dated 1 April 2021. That is, £23,018.00.”
“the Applicant did not present any evidence to the Tribunal to demonstrate that the charge made, £1,162.50 inclusive of VAT, was unreasonable. On the evidence presented, the Tribunal finds that the charge is reasonable and that it is recoverable by the Respondent from the Applicant.”
“The Respondent through its managing agent, Hurst Managements, could, and indeed should have known at the relevant time that the balconies were the responsibility of the individual leaseholders and therefore should not have featured in the works to be covered in the reserve fund. The cost of replacing the balconies should not have formed part of the estimated costs on which the demand was based. Hurst Managements has been managing agents for the Respondent since the freehold was acquired in 2009 and should have been familiar with the provisions in the lease.”
“Mr Kelly was unable to provide the Tribunal with a detailed calculation showing how the estimate of £76,600 was arrived at. He was unable to break the figure down between the balconies and the cladding.”
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.