Decision summary

MAN/30UN/LSC/2019/0084 — service charge decision

In MAN/30UN/LSC/2019/0084, decided 16 February 2021, the First-tier Tribunal considered 11 disputed service charge items at 14C, Liverpool Road, Penwortham, Preston and reached a mixed result: 6 items were reduced or disallowed. Full decision on GOV.UK below.

Property: 14C, Liverpool Road, Penwortham, Preston
Decision date: 16 February 2021
Full decision: Read on GOV.UK

Managing agent named in the decision: Complete Property Management Solutions Limited.

What was challenged and what the tribunal decided

ItemDemandedAllowedOutcomeGrounds
Management fees (2017-19)£333.10ReducedNo Section 20 consultation, Costs unreasonably incurred (s19(1)(a))
Management fees (2019-20)£999.30ReducedNo Section 20 consultation, Costs unreasonably incurred (s19(1)(a))
Buildings insurance (2017-20)£1,066.34£1,066.34Allowed in full
Repairs & maintenance (2017-20)£466.67£233.33ReducedNo Section 20 consultation, Poor standard of work
Repairs & maintenance (2017-20)£75£0Disallowed entirelyNot payable under the lease
Reserve fund contributions (2017-19)£133.26£133.26Allowed in full
Reserve fund contributions (2019-20)£333.10£333.10Allowed in full
Other charges (2019-20)Allowed in full
Cleaning (2017-20)Withdrawn
Administration charges (2017-20)£48£36ReducedCosts unreasonably incurred (s19(1)(a))
Legal & professional costs (2017-20)£250£193.80ReducedCosts unreasonably incurred (s19(1)(a))

Section 20C order: granted.

Key passages (verbatim)

“the Tribunal is drawn to the conclusion that it is such a qualifying long-term agreement and the amount recoverable from the Applicant should not exceed £100.00 for each of the periods in question”
On management fees
“the amount recoverable from the Applicant should not exceed £100.00 for each of the periods in question, in accordance with paragraph 4 of the Service Charges (consultation etc) (England) Regulations 2003.”
On management fees
“For the Tribunal this is a reasonable amount to pay for the relevant buildings insurance in respect of a flat such as 14c as part of a landlord's policy.”
On buildings insurance
“a contribution of one-half (£233.33) is appropriate and taking into account the suggested defects in the making good and reflect some proportionality in respect of this item.”
On repairs & maintenance
“it is the tribunal's view that the responsibility falls only on the Applicant in relation to any decision as to its operation, or repair and is not a charge for the landlord to recover via the service charge.”
On repairs & maintenance
“Given that it is appropriate for there to be such a fund, the current contributions are also appropriate. The Tribunal would go so far as to suggest that the September 2017 to March 2019 contribution is low.”
On reserve fund contributions
“This would not have been difficult and might have been of assistance to the Tribunal that the decision as to what it is for is not entirely open, but subject to what must be reasonable to the Respondent.”
Of Respondent (failure to clarify purpose of reserve fund)
“Given that paucity of evidence on either side, but the ability to establish the true position one way or the other lies with the Respondent”
Of Respondent (management fee consultation evidence)

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.