First-tier Tribunal Lacks Jurisdiction Over Commercial Service Charges
📌 In brief
The First-tier Tribunal decided it couldn't handle a case about service charges for a commercial space because it only deals with residential properties. The case was sent back to the Chelmsford County Court.
⚖️ Legal holding
The tribunal does not have jurisdiction to determine service charges for commercial premises under section 27A of the Landlord and Tenant Act 1985.
📖 What the law says
This section defines 'service charge' as an amount paid by a tenant of a dwelling as part of or in addition to rent, which covers services, repairs, maintenance, improvements, insurance, or the landlord's management costs. It also specifies that 'relevant costs' include the actual or estimated costs incurred by the landlord related to these services.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The tribunal lacks jurisdiction over commercial premises service charges under the Landlord and Tenant Act 1985.
📜 Headnote Official document
The First-tier Tribunal determined it had no jurisdiction to decide on service charges for commercial premises under section 27A of the Landlord and Tenant Act 1985. The case was referred back to the Chelmsford County Court.
📚 Full judgment Official document
OUTCOME: Dismissed
© CROWN COPYRIGHT
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : CAM/22UG/LIS/2019/0008 Property : 63 [ADDRESS] [POSTCODE] Applicant : [redacted] [APPELLANT] : PDC Law Respondent : [redacted] Representative : None Type of application : Determination of service charges: section 27A Landlord and Tenant Act 1985 Tribunal member(s) : Judge Wayte Date of decision : 1 April 2019
DECISION
Decisions of the tribunal (1) The tribunal determines that it has no jurisdiction in this case since the service charges are in respect of commercial premises. (2) The case be transferred back to the Chelmsford County Court.
2 The application 1. This case was sent to the tribunal by an order of Chelmsford County Court dated 31 December 2018 for a determination of what, if any, service charges are due and payable.
2. The claim is under a lease dated 21 September 2009 in respect of a retail unit known as Berechruch Barbers. The terms of the lease require that the property may only be used for commercial use.
3. The jurisdiction of this tribunal under section 27A of the Landlord and Tenant Act 1985 is to determine the payability of a service charge. Service charges are defined in section 18 of that Act as “an amount payable by a tenant of a dwelling…”.
4. It follows that as in this case the service charges levied are in respect of commercial premises, the tribunal does not have jurisdiction and the matter must therefore be referred back to the County Court pursuant to the tribunal’s case management powers under Rule 6 of the Tribunal procedure (First-tier Tribunal) (Property Chamber) Rules 2013. Name: Judge Wayte Date: 1 April 2019
Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If a party wishes to appeal this decision to the Upper Tribunal (Lands Chamber), then a written application for permission must be made to the First-tier Tribunal at the regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the person making the application. If the application is not made within the 28 day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e. give the date, the property and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) Tribunal Reduces Rent Due to Property Neglect
- First-tier Tribunal (Property Chamber) Tenant Found in Breach of Multiple Lease Covenants
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Fire Safety Survey Dispensation
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Dispensation for Urgent Electrical Repairs
- First-tier Tribunal (Property Chamber) First-tier Tribunal Sets Premiums for New Leases Based on Expert Valuations
- First-tier Tribunal (Property Chamber) Claimant Successfully Acquires Right to Manage Property
- First-tier Tribunal (Property Chamber) Landlord Granted Dispensation for Boiler Installation Without Full Consulta…
- First-tier Tribunal (Property Chamber) Tenant's Rent Increase Appeal Rejected Due to Defective Notice
- First-tier Tribunal (Property Chamber) Tribunal Lacks Jurisdiction Over Freeholder's Rent Charges
- First-tier Tribunal (Property Chamber) Tenant Found in Breach for Non-compliant Flooring
- First-tier Tribunal (Property Chamber) Tenant's Rent Increase Claim Rejected by First-tier Tribunal
- First-tier Tribunal (Property Chamber) Financial Penalty Upheld for HMO Licence Breaches
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tribunal allows claims when landlords fail to meet statutory requirements.
- The tribunal grants relief for tenants whose properties are in disrepair.
- The tribunal permits applications for reduced rent under specific legal conditions.
- The tribunal considers expert valuations to determine lease premiums.
❌ Tends to be rejected
- The tribunal dismisses applications for new rent determinations if properties are fully tenanted.
- The tribunal rejects claims when the claimant has not complied with lease requirements.
- The tribunal does not have jurisdiction over certain types of rent charges or service charges.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tribunal decided it didn't have the right to hear the case about service charges for commercial premises.
Who was involved?
The case involved a company managing a property and another company owning the property.
How did the court decide, and why?
The court decided it lacked jurisdiction because the service charges were for commercial premises, not residential ones.
Which laws or rules were applied?
The Landlord and Tenant Act 1985 sections 27A and 18 were applied.
What was the argument that mattered most?
The argument that mattered most was that the tribunal only has jurisdiction over residential properties, not commercial ones.
Was the decision for or against the person who brought the case?
The decision was against the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should consider bringing their case to a court that has jurisdiction over commercial premises.
What evidence or documents mattered?
The lease agreement and the definition of service charges in the Landlord and Tenant Act 1s were important.
Can a decision like this be appealed?
Yes, a decision like this can be appealed to the Upper Tribunal (Lands Chamber).
Is it worth getting a solicitor for a case like this?
It's always recommended to get advice from a qualified solicitor for cases like this.