Reasonableness and Payability of Service Charges Determined
📌 In brief
In this case, the First-tier Tribunal decided on whether certain service charges were reasonable and payable. The decision was made by Judge S Evans on May 15, 2020, and concluded that the service charges were reasonable and payable.
⚖️ Legal holding
Service charges are reasonable and payable if they are costs reasonably incurred by the landlord and in a reasonable sum.
📖 Technical summary
The Tribunal ruled on the reasonableness and payability of service charges under the Landlord and Tenant Act 1985.
📜 Headnote Official document
The Tribunal determined the reasonableness and payability of service charges in a case involving a leaseholder and a landlord. The decision was made by Tribunal Judge S Evans on 15 May 2020.
📚 Full judgment Official document
OUTCOME: Allowed
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First-tier Tribunal
Property Chamber
(Residential Property)
A: BTMMREMOTE
Case reference
: CAM/26UL/LSC/2019/0076
Property
: 5 [ADDRESS] [POSTCODE].
Applicant: [redacted]
: [NAME] [APPELLANT]
Respondent
: [redacted] (formerly [NAME])
Representative
: Miss [COUNSEL] of Counsel
Date of Application : 21 November 2019
Type of application : Application for the determination of the reasonableness and payability of service charges
The Tribunal
: Tribunal Judge S Evans
Date/ place of hearing : 28 April 2020, by telephone
Date of decision : 15 May 2020
____________________________________________
DECISION _________________________________ ©
(1) The estimated service charge costs of £285.96 per annum per leaseholder in respect of the Scheme Manager for 2019/2020 are costs which are reasonably incurred by the Respondent and in a reasonable sum;
(2) The Respondent landlord’s costs in connection with these proceedings are not to be regarded as relevant costs to be taken into account in determining the amount of any
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service charge payable, pursuant under section 20C of the Landlord and Tenant Act 1985;
(3) None of the Respondent’s litigation costs of these proceedings shall be recoverable as an administration charge pursuant to paragraph 5A of schedule 11 to the Commonhold and Leasehold Reform Act 2002;
(4) No order is made for reimbursement of the application fee or hearing fee.
REASONS
Introduction
1. The Tribunal is asked to determine the payability and reasonableness of costs incurred by way of service charges pursuant to an application made under s.27A of the Landlord and Tenant Act 1985.
The Hearing
2. This was a remote hearing which was not objected to by the parties. The form of the remote hearing was A: audio (BT Meet Me fully remote). A face-to-face hearing was not held, because it was not practicable on account of the Coronavirus pandemic and all issues could be determined in a remote hearing. At the outset, I therefore directed that the hearing be held in private but recorded on BT MeetMe.
3. The documents before me were contained in a bundle of 261 pages, plus a supplemental bundle of 2 pages, together with Respondent counsel's skeleton argument, the contents of all of which I have read, and for which I am grateful.
The Parties
4. The Applicant is the leaseholder of 5 [ADDRESS] [POSTCODE]. The Respondent, [RESPONDENT], was formerly known as [COMPANY], but [NAME] merged with the Respondent on 11th December 2019.
5. By a lease dated 13th June 1990 between (1) [COMPANY], (2) [NAME] and (3) [NAME], the Property (which consists of a ground floor flat and basement bin store and parking space) was demised for a term of 125 years from the 29th September 1989. The leasehold title was registered on the 19th June 1991.
📊 How courts decide similar cases
Among 9 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Reasonable and Payable
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules on Reasonableness of Service Charges
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Payable
- First-tier Tribunal (Property Chamber) Service Charges Found Reasonable and Payable by First-tier Tribunal
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Reasonable and Payable
- First-tier Tribunal (Property Chamber) Service Charges for 2019 and 2020 Found Reasonable and Payable
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Payable
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules Service Charges Reasonable and Payable
- First-tier Tribunal (Property Chamber) First-tier Tribunal upholds service charges as reasonable and payable
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
- Service charges are considered reasonable if they cover costs incurred for providing services to tenants.
- Service charges are deemed reasonable if the landlord provides evidence of the necessity and reasonableness of the charges.
- Service charges are seen as reasonable if they are not excessive and are estimated based on the landlord's obligations.
❌ Tends to be rejected
- Service charges are seen as unreasonable if the landlord fails to provide sufficient evidence of their necessity.
- Service charges are deemed unreasonable if they are not clearly linked to the provision of services of a reasonable standard.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
It decided that the estimated service charge costs of £285.96 per year were reasonable and payable.
Who was involved?
The case involved a leaseholder and a landlord.
How did the court decide, and why?
The court decided that the service charges were reasonable and payable because they were costs reasonably incurred by the landlord and in a reasonable sum.
Which laws or rules were applied?
The Landlord and Tenant Act 1985 Section 20C and the Commonhold and Leasehold Reform Act 2002 Section 115A were applied.
What was the argument that mattered most?
The argument that mattered most was that the service charges were reasonable and in a reasonable sum.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, the decision means that service charges must be reasonable and in a reasonable sum to be considered payable.
What evidence or documents mattered?
The documents submitted by both parties, including lease agreements and cost estimates, were important.
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 cases involving service charges.
