Tribunal rules on service charges and orders reimbursement
📌 In brief
The First-tier Tribunal ruled on the payability of various service charges demanded by the respondent for the year January 2024 to December 2024, finding several charges unreasonable and ordering the respondent to reimburse the applicants' fees.
⚖️ Legal holding
A tenant is entitled to have service charges reasonably incurred and reasonable in amount, as determined by the tribunal under s.27A of the Landlord and Tenant Act 1985, specifically regarding the management fee and insurance pro-rating.
📖 Technical summary
The tribunal ruled that certain service charges were unreasonable and ordered the respondent to reimburse the applicants' tribunal fees of £341.00 within 14 days.
📜 Headnote Official document
The First-tier Tribunal ruled on the payability of various service charges demanded by the respondent for the year January 2024 to December 2024, determining several charges as unreasonable and ordering the respondent to reimburse the applicants' fees.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference :
LON/00AY/LSC/2025/0718
Property : [ADDRESS] [POSTCODE] Applicants : [redacted] (2) [NAME] [NAME] (3) [NAME] (4) [NAME] [NAME] (5) [NAME] (6) [NAME] (7) [COUNSEL] (8) [COUNSEL] (9) [COUNSEL] : [COUNSEL] (lead tenant) Respondent : [redacted] : N/A Type of application : Service Charges – s.27A of the Landlord and Tenant Act 1985 Tribunal members : Judge Tagliavini Mr D Jagger MRICS Venue : 10 [ADDRESS] [POSTCODE] Date of hearing Date of decision : 21 November 2025 17 December 2025
DECISION
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Decisions of the tribunal (1) The charges incurred by or on behalf of the respondent in the period
June 2024 to June 2025 for the following items are payable by the
applicants in the following amounts:
Insurance - £497.85
Surveyor’s fees for insurance purposes - £0.00
[NAME]’ fees for preparing PPM Schedule - £0.00
Management fee to date of acquisition of right to manage - £1104.60
BNO standard audit report -£0.00
Carpet in common parts - £0.00
Handover fee - £0.00
Common parts cleaning - £700.00
Window cleaning - £375.00
Communal areas touch-up - £0.00
Visual inspection condition report - £240.00
Grit spreading - £0.00
(2) The tribunal makes an order under s.20C of the Landlord and Tenant
Act 1985 so that none of the respondent’s costs can be added to the
service charges. (3) The tribunal makes an order under sch. 11 para 5A of the Commonhold
and Leasehold Reform Act 2002 so that none of the respondent’s
administration charges of or incurred by this application are payable by
the applicants. (4) The tribunal makes an order requiring the respondent to reimburse the
fees paid by the applicants to this tribunal in the sum of £341.00 within
14 days of this decision being sent to the parties.
____________________________________________________ The application 1. This is an application pursuant to the provisions of s.27A of the landlord and Tenant Act 1985 seeking a determination of the payability of service charges.
The background 2. The Applicants are the leasehold owners of 6 flats in the premises known as [ADDRESS] [POSTCODE] (‘the
property’). The Respondent purchased the freehold in the premises on
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23 June 2023 as of 12 June 2025, its freehold interest in the building has not been registered at HM Land Registry. 3. The applicants’ right to manage the building was acquired through
[COMPANY] on 23 July 2024 and on 20 March
2025 the applicants submitted an application for the determination of
service charges for the service charge year ending December 2024. At a
preliminary hearing held on 12 June 2025, the tribunal determined:
The respondent is entitled in principle to recover service charges
due under the leases notwithstanding the fact that the costs were
incurred and the demands for payment sent prior to the
registration of the Respondent’s legal interest in the freehold
estate. 4. In this application the applicants seek a determination of:
• The payability of the service charges demanded for
the year January 2024 to December 2024 which included:
Insurance June 2024/45; [NAME] fees; management fee;
BNO standard audit fee; carpet replacement costs;
handover fee; common parts cleaning costs; window
cleaning; communal area redecoration touch-up; visual
installation condition report and grit spreading. •
Whether the costs are reasonably incurred and reasonable
in amount.
• Whether any of the costs demanded relate to the period
following the acquisition of the right to manage in July
2024.
• Whether an order under section 20C of the 1985 Act
and/or paragraph 5A of Schedule 11 to the 2002 Act
should be made.
• Whether an order for reimbursement of application/
hearing fees should be made. The hearing 5. An oral hearing was held at which the applicants were represented by Mr [NAME] with [NAME] also in attendance. On 23 October 2025 Judge
Nicol made an Order barring the respondents from playing any further
role in this application. At the hearing, the respondent did not appear
and was not represented. Further, the respondent failed to comply
4 with the tribunal’s directions to record its comments in the Scott Schedule
in which the applicants set out each item they challenged and their
reasons for that challenge. The applicants also relied upon a digital
bundle of 266 pages that had been provided to the tribunal. The tribunal’s reasons 6. In reaching its decisions recorded above, the tribunal took into account
all of the written and oral evidence of the parties, 7. In the absence of any challenge by or evidence from the respondent, the
tribunal found the issues raised by the applicants to be well supported
by the clear and credible oral and documentary evidence on which
they relied. The tribunal also accepted the figures proposed by the
applicants for each item including those they accepted should be pro-
rated as it found these to be reasonable and were unchallenged by the
respondent. 8. The tribunal, therefore made the following determinations on each of the heads of service charge raised by the applicants. Insurance
9. The tribunal accepts the applicants’ submissions that the insurance
should be pro-rated after having acquired the right to manage with effect from 23 July 20024. The tribunal finds that the demand for payment of
the insurance issued on 13 February included cover post 24 July 2025
and determines that £497.85 is xxx payable by the applicants.
Surveyor’s fees for insurance purposes
10. The tribunal finds the demanded for this sum by the respondent is
unreasonable as the survey was carried out on 30 July 2024 and after
the applicants acquired the right to manage the subject property. In any
event, the respondent would have known months in advance of the
application seeking to acquire the right to manage and could have
cancelled the survey. The tribunal finds the respondent has shown no
justification for continuing to incur this charge. Therefore, the tribunal
finds the sum payable for this item is nil.
[NAME]’ fees for preparing PPM Schedule - £0.00
11. The tribunal determines the applicants are not required to pay for this
item of service charge as it was not reasonably x incurred for the reasons given at paragraph 10 above. Therefore, the tribunal finds the sum payable for this item is nil.
5 Management fee to date of acquisition of right to manage
12. The tribunal determines that the applicants are not required to pay for
management fees post 23 July 2024 as the respondent was no longer
required to provide management of the subject building. The tribunal
accepts the pro-rated figure proposed the applicants as reasonable.
Therefore the tribunal confirms the sum payable by the applicants for
this item of service charge is £1104.60.
BNO standard audit report -£0.00
13. The tribunal finds the sum demanded by the respondent for this item has not been reasonably incurred. The tribunal finds there is no requirement on the part to the respondent to have incurred this expense or that it was, in any event carried out by a properly qualified contractor. Therefore, the tribunal determines the sum reasonably payable for this item is nil.
Carpet in common parts - repair
14. The tribunal accepts the applicants’ oral, documentary and photographic evidence and finds this work was not carried out as alleged by the respondent or at all. Therefore, the tribunal determines the reasonable sum payable for this item of service charge is nil.
Handover fee
15. The tribunal accepts the applicants’ evidence that the respondent failed
to ‘handover’ the management of the subject property as required on the requisite date or at all. The tribunal accepts the applicants’ evidence that the respondent failed to properly or meaningfully respond to s.93 of the
1993 Act notices served by the applicants. Therefore, the tribunal finds
the sums demanded by the respondent for this item of service charge has not been reasonably incurred and that the sum reasonably payable is nil.
Common parts cleaning
16. The applicants accept that some cleaning was carried out but should be
pro-rated to reflect the date of the acquisition of the right to manage and the poor level of service provided. The tribunal determines the sum
reasonably payable for this item of service charge is £700.00
Window cleaning
17. The tribunal finds that the demand made by the respondent is
unreasonable as the subject property reasonably required a bi-annual
visit at most. Further, the tribunal accepts the applicants’ evidence that
they have secured a satisfactory window cleaning service from the same
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supplier at a significantly reduced cost. Therefore, the tribunal finds the
sum reasonably payable for this item of service charge is £375.00.
Communal areas touch-up
18. The tribunal accepts the applicants’ evidence and finds this work was not carried out at all or if carried out was of such a poor standard so as not
to be noticeable by the applicants. Therefore, the tribunal finds the
reasonable sum payable is nil.
Visual installation inspection condition report
19. The tribunal accepts the applicants’ evidence and finds that this
inspection was carried out by [NAME]. The tribunal
accepts the applicants’ submission that the sum for this item of service
charge should be reduced to £240.00 based on an EICR quote obtained
by the applicants.
Grit spreading
20. The tribunal finds this sum was not reasonably incurred by the
respondent as it concerned an area that did not fall within the demise of the subject property and formed part of a publicly accessible area in front of Helston House. Therefore, the reasonable sum payable by the
applicants is nil
21. In light of the above findings and decision the tribunal considers it is just and equitable to make and order under both s.20C of the Landlord and
Tenant Act 1985 and Sch.11 par.5A of the Commonhold and Leasehold
Reform Act 2002 so that the respondent’s costs of this application can
be added to the services charge or sought from the applicants as
administration charges, respectively.
22. The tribunal also makes an order requiring the respondent to reimburse the applicants the fees paid to the tribunal in the sum of 341.00 to be paid within 14 days of the decision being sent to the parties.
Name:
Judge Tagliavini Date: 17 December 2025
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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 [NAME] which has been dealing with the case. The application should be made on Form RP PTA available at https://www.gov.uk/government/publications/form-rp-pta-application-for- permission-to-appeal-a-decision-to-the-upper-tribunal-lands-chamber The application for permission to appeal must arrive at the [NAME] 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 11 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rejects Landlord's Costs in Service Charges
- First-tier Tribunal (Property Chamber) Leaseholder wins challenge over unreasonable service charges
- First-tier Tribunal (Property Chamber) Tribunal Rejects £860.98 Service Charge Arrears Demand for Assured Tenancy …
- First-tier Tribunal (Property Chamber) Tenant Wins Challenge to Service Charges in First-tier Tribunal
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rules on Reasonableness of Service Charges
- First-tier Tribunal (Property Chamber) Tenant Successfully Challenges Service Charge Reasonableness
- First-tier Tribunal (Property Chamber) Tribunal Determines Reasonable Service Charges for Residential Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Decides Service Charge Reasonableness
- First-tier Tribunal (Property Chamber) Tribunal Sets £27,000 Service Charge for Tenancy in London
- First-tier Tribunal (Property Chamber) Tenant Loses Service Charge Challenge in First-tier Tribunal
- First-tier Tribunal (Property Chamber) First-tier Tribunal Rejects Tenant's Challenge to Service Charges
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
- Tenant challenges the reasonableness of service charges under the Landlord and Tenant Act 1985.
- Tenant challenges the reasonableness and payability of service charges under the Landlord and Tenant Act 1985.
- Tenant challenges the reasonableness of both service and administration charges under the Landlord and Tenant Act 1985.
❌ Tends to be rejected
- Tenant challenges the reasonableness of service charges but the challenge was partially dismissed.
- Tenant challenges the reasonableness of service charges but the challenge was fully dismissed.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tribunal ruled that certain service charges were unreasonable and ordered the respondent to reimburse the applicants' fees of £341.00 within 14 days.
What was the dispute about?
The dispute was over the reasonableness of service charges incurred by the landlord post-acquisition of the right to manage the property.
How did the court decide, and why?
The court decided that the service charges were unreasonable and ordered the respondent to reimburse the applicants' fees because the costs were not reasonably incurred or were excessive.
Which laws or rules were applied?
The court applied s.27A of the Landlord and Tenant Act 1985, s.20C of the Landlord and Tenant Act 1985, and sch. 11 para 5A of the Commonhold and Leasehold Reform Act 2002.
What was the argument that mattered most?
The argument that mattered most was the reasonableness of the service charges and the costs incurred post-acquisition of the right to manage the property.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, as the tribunal ruled in favour of the applicants.
What does this mean for someone in a similar situation?
For someone in a similar situation, this means that unreasonable service charges can be challenged and potentially disallowed by a tribunal.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered, but it likely included financial records and documentation related to the service charges in question.
