Tenant Ordered to Pay Reasonable Administration Charges

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : LON/00AK/LAC/2022/0003 HMCTS code (paper, video, audio)

P: PAPERREMOTE Property : 7 [ADDRESS], [POSTCODE] Applicant : [redacted] : [NAME] (ref: DEXTE/173) Respondents : [redacted] : N/A Type of [NAME] : Liability to pay administration charges Tribunal member(s) : Judge [NAME] : 10 [ADDRESS] [POSTCODE] Date of decision Date of Addendum : 5 July 2022 2 August 2022

DECISION & ADDENDUM

Covid-19 pandemic: description of hearing This has been a remote hearing on the papers which has not been objected to by the parties. The form of remote hearing was P:PAPERREMOTE. A face-to- face hearing was not held because it was not practicable and all issues could be determined on paper. The documents that the Tribunal were referred to are in a bundle of 134 pages, the contents of which have been considered by the tribunal.

2 The tribunal’s summary decision (1) The tribunal finds that sums claimed by the applicant in administration fees in the sums of £171.00 and £191.00 (including VAT) are reasonable and payable by the respondents. The total sum of £362 is payable within 7 days of the date of this decision. ADDENDUM (2) The tribunal directs the respondents to reimburse the [NAME] fee of £100 paid by the applicant within 7 days of the date of this addendum. _____________________________________________________ The [NAME]

1. This is an [NAME] made pursuant to schedule 11 to the Commonhold and Leasehold Reform Act 2002 seeking a determination of the payability of administration charges in the sums of £171.00 and £191.00. The background 2. Under a lease dated 15 January 2016 made between [COMPANY] and Mr [NAME] and Mrs [NAME] and [ADDRESS] ([COMPANY] the respondents were granted a leasehold interest in the subject property for a term of 125 years with effect from 29 September 2015. Cause 5(a) of the lease requires the respondents to observe and perform the Tenant Covenants and paragraph 16(a) of Schedule 4 specified the respondents had agreed to indemnify the landlord and the applicant Management Company for costs expenses incurred arising out of or in connection with a breach of the Tenant Covenants. The applicant’s case 3. The applicant relied upon a bundle of documents which included a statement headed ‘Disclosure’ dated 5 May 2022 and a Statement of Case dated 8 June 2022 together with additional documentation in support of the [NAME]. By letters of claim dated 1 April 2021 and 28 February 2022 the applicant made demands for unpaid service charges for the periods 01/01/2021 to 30/06/2021 and 01/01/2022 to 30/06/2022 and administration charges of £171.00 and £191.00 (including VAT). A summary of the tenant’s rights and obligations was included with this correspondence.

4. Subsequently, the applicant confirmed the payment of the outstanding service charges and the continued non-payment of the administration

3 fees incurred of £171.00 and £191.00. A breakdown of these costs was provided by the applicant detailing the charges made by the managing agents [COMPANY] and [COMPANY], the [COMPANY]. The respondents’ case 5. No representations were made by or received from the respondents. The tribunal’s decision and reasons 6. The tribunal finds that the respondents covenant with the applicant to indemnify the costs and expenses incurred as a consequence of or arising from a breach of the Tenant Covenants. The tribunal finds that by failing to pay service charges when demanded in accordance with the terms of the lease, the respondents caused the applicant to incur costs associated with their recovery.

7. The tribunal finds the costs incurred by the applicant’s managing agent, (£72.00 and £72.00), the debt recovery agent fees (£96.00 and £116.00) and the disbursements to the Land Registry (£3.00 and £3,00) are reasonable in amount and are payable in accordance with the terms of the lease.

8. In conclusion, the tribunal finds that the administration costs of £171.00 (including VAT) and £191.00 (including VAT) are reasonable and payable by the respondents to the applicant. These sums are to be paid by the respondents within 7 days of the date of this decision. ADDENDUM 9. On 6 July 2022, the applicant made an [NAME] for the reimbursement of the [NAME] fee of £100.00 in light of the tribunal’s findings in its favour.

10. The tribunal finds it is reasonable and appropriate to require the respondents to reimburse the £100.oo [NAME] fee paid by the applicant, in light of the tribunal’s findings in favour of the applicant.

Name: Judge Tagliavini

Date: 5 July 2022 and 2 August 2022

4 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 [NAME] for permission must be made to the First- tier Tribunal at the regional office which has been dealing with the case. The [NAME] for permission to appeal must arrive at the regional office within 28 days after the tribunal sends written reasons for the decision to the [NAME]. If the [NAME] is not made within the 28-day time limit, such [NAME] 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 [NAME] for permission to appeal to proceed, despite not being within the time limit. The [NAME] 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 [NAME] the [NAME] is seeking. If the tribunal refuses to grant permission to appeal, a further [NAME] for permission may be made to the Upper Tribunal (Lands Chamber).