First-tier Tribunal Rules Tenant Must Pay Service Charges
📌 In brief
The First-tier Tribunal decided that a tenant must pay service charges to the landlord as they are reasonable and accurate according to the lease agreement. This includes costs for maintaining the structure and service conduits of the block of flats.
⚖️ Legal holding
A tenant must pay a reasonable proportion of the cost of maintaining the structure and service conduits of the block of flats under their lease agreement.
📖 Technical summary
The tribunal ruled that the tenant must pay the landlord's service charges as they are deemed reasonable and accurate.
📜 Headnote Official document
The First-tier Tribunal ruled that the tenant must pay the landlord service charges for the period ending 23 September 2019 in the sum of £1918.63, finding the costs incurred by the landlord reasonable and the service charge account accurate.
📚 Full judgment Official document
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case Reference : MAN/00CA/LSC/2020/0009 (Claim number: F5QZ83KV)
Property : 112 [ADDRESS] [POSTCODE]
Applicant: [redacted]
Respondent: [redacted] : Landlord and Tenant act 1985, s 27A Commonhold and Leasehold Reform Act 2002, Schedule 12 paragraph 3(1)(a)
Tribunal Members : [NAME], LLB
J [NAME], MRICS
Date of Decision : 20 August 2020
Date of Determination : 24 August 2020
DECISION
© CROWN COPYRIGHT 2020
The Respondent shall pay the Applicant service charges for the period ending 23 September 2019 in the sum of £1918.63.
REASONS
Background
1. In or about May 2011 the Respondent purchased a leasehold interest in a property known as [ADDRESS], Sefton, Liverpool ([NAME]). [NAME] is a ground floor flat in a two storey block of 4 flats, and has a garden.
2. The lease is dated 10 August 1981 and creates a term of 999 years from 1st January 1981 at a peppercorn rent.
3. The lease requires the Respondent to pay “a due proportion” of the cost of maintaining the structure, service conduits and boundary structures of the block of flats. In practice she has been charged one quarter of the cost of insuring and repairing the building. No cleaning, gardening or other services are provided by the Applicant.
4. The Applicant has been consistently in arrears on the service charge account maintained by the Respondent. The County Court Claim 5. The Applicant applied to the Liverpool County Court on 22 November 2019 for recovery of the arrears, which amounted to £1918.63 as at 23 September 2019.
6. The Respondent filed a short defence on 27 November 2019 stating that no services were supplied to her by the Local Authority except that they (in fact, the Applicant) arranged the buildings insurance. She compared her situation to that of her neighbours, who however may be in receipt of repairs and other benefits as council tenants. She indicated that she pays £40 per month for gardening, although no charge for this appears in the service charge account and the lease provides that the Respondent is responsible for keeping her own garden tidy. Finally, the Respondent stated that she had not been warned that she was likely to incur the cost of the repair involving removal of asbestos. The Tribunal Application 7. On 16 January 2020 the claim was transferred to this Tribunal for a determination as to the service charges due, if any.
8. Directions were issued on 21 February 2020. The Applicant filed a statement of case supported by copy accounts and repair records. The Respondent did not file any further statement or documentation. Decision 9. Under the terms of her lease the Respondent is responsible for paying a reasonable proportion of the cost of buildings insurance and repairs.
10. The Tribunal finds that the costs incurred by the Applicant are reasonable and that the service charge account is accurate. The balance shown on the account is therefore payable by the Respondent.
Judge A [NAME] 20 August 2020
📊 How courts decide similar cases
Among 5 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules on Reasonableness of Service Charges
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Tenant Must Pay Service Charges
- First-tier Tribunal (Property Chamber) Tenant Ordered to Pay Over £83k in Service Charges and Insurance Rent
- First-tier Tribunal (Property Chamber) Tenant Wins Service Charge Dispute Over Improper Demands
- First-tier Tribunal (Property Chamber) Tenant Successfully Challenges Service Charges in First-tier Tribunal
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
- Tenants can challenge the payability of service charges if the landlord does not comply with lease provisions.
- Tenants are allowed to withhold payment if the service charge demand lacks the required summary of rights and obligations.
- Service charges are deemed reasonable and payable if the services were provided and the charges were incurred reasonably.
❌ Tends to be rejected
- Tenants breach their lease agreement by underletting and charging the property without the landlord's consent.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tenant must pay the landlord service charges as they are deemed reasonable and accurate.
Who was involved?
The tenant and the landlord were involved.
How did the court decide, and why?
The court decided that the service charges were reasonable and accurate based on the lease agreement.
Which laws or rules were applied?
The Landlord and Tenant Act 1985 and the Commonhold and Leasehold Reform Act 2002 were applied.
What was the argument that mattered most?
The argument that mattered most was whether the service charges were reasonable and accurate under the lease agreement.
Was the decision for or against the person who brought the case?
The decision was against the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure that their service charges are reasonable and accurately calculated according to their lease agreement.
What evidence or documents mattered?
The evidence included the service charge account maintained by the landlord and repair records.
Can a decision like this be appealed?
Yes, decisions like this can be appealed to a higher court.
Is it worth getting a solicitor for a case like this?
It is always recommended to seek advice from a qualified solicitor for such cases.