Tribunal Rules Service Charges Are Reasonable Without Opposition

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FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference : HAV/21UD/LSC/2024/0637 Property : [ADDRESS], [POSTCODE] Applicant : [redacted] : [NAME] Respondent: [redacted] : None Type of [NAME] : Determination of the liability to pay service charges under section 27A of the Landlord and Tenant Act 1985 Tribunal members : [APPELLANT] : Determination on Papers Date of decision : 17 July 2025

DECISION

2 Decisions of the tribunal (1) The tribunal determines the following service charge amounts are payable by the respondent for the following years;

Year ending Amount 2019 £1359.60 2020 £3812.80 2021 £1577.40 2022 £1973.60 2023 £3130.40 2024 £1922.80 2025 £2451.20

(2) The tribunal does not make an order under section 20C of the Landlord and Tenant Act 1985 nor the Commonhold and Leasehold Reform Act 2002 Paragraph 5A of Schedule 11. Preliminary (3) By directions dated 19 May 2025 of Judge Whitney, the issues were to be determined without hearing on the papers. The [NAME]

1. The applicant seeks a determination pursuant to s.27A of the Landlord and Tenant Act 1985 (“the 1985 Act”) as to the amount of service charges payable by the applicant in respect of past service charge years of 2018- 2019, 2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023- 2024 and the future service charge year 2024-2025. The lessees' proportion being £13,776.60 for years 2018-2019 to 2023-2024 inclusive and a further £12,256.00 for the building for 2024 – 2025 which equates to £2451.20 for the subject property, for the service charge on account for the year ending 2024-2025. Background 2. An [NAME] was made to the tribunal on 4 November 2024 under section 27A Landlord and Tenant Act 1985 challenging the service charge for years as noted above.

3. The applicant noted that for each year in dispute:

3 “The lessee has not contested any of the service charges, and continues to pay small amounts regularly, however the amounts paid are not enough to repay the debt, which increases each year , all the lessees own a share in this freehold company and so by not paying the service charges, the other lessees are having to fund this lessees share of the maintenance.” 4. The tribunal gave directions, 26 March 2025, for a case management hearing on the 16 May 2025 to take place at [ADDRESS], [POSTCODE].

5. The directions required the parties submit a position statement by 2 May 2025 setting out what is agreed and what is not agreed. The applicant submitted a position statement dated 28 April 2025. The respondent did not submit a position statement.

6. The Case Management and Dispute Resolution Hearing took place on the 16 May 2025 and was attended by the applicant [APPELLANT] of [NAME] and Mr [APPELLANT] a trainee Property Manager observing.

7. The respondent did not attend.

8. The tribunal in their subsequent directions of the 19 May 2025 noted they were satisfied that the respondent had sufficient notice of the hearing.

9. The tribunal issued subsequent directions noting the issue was to be determined on the papers. In the absence of an objection from the respondent and that to this effect the following were required; the respondent's case to be submitted by 30 May 2025, second applicant’s case by the 13 June 2025 and finally a reply from the respondent by 20 June 2025. The applicant to be responsible for preparing the bundle by 27 June 2025.

10. The tribunal directed that the parties should include written representations on applications concerning • Reimbursement of Tribunal fees • Section 20C [NAME] preventing the landlord from recovering the costs of the proceedings through the service charge • Para 5A Schedule 11 [NAME] preventing the landlord from recovering litigation costs from a tenant.

11. By email of 30 May 2025 and 3 June 2025 within the bundle at [66] [68] respectively there are copies of emails from the respondent to the

4 applicants which note their awareness of directions, and their need to make submissions to the tribunal and their desire to do so. The Determination 12. The [NAME] requests the tribunal to make a determination for the service charge years 2018-2019, 2019-2020, 2020-2021, 2021-2022, 2022-23, 2023-2024, and the budget service charge of 2024-2025. The Lease 13. A copy of the lease for Flat 2, 133 Marina, St Leonards on Sea, East Sussex is provided in the bundle [7].

14. The relevant sections of the lease are; Clause 3 (1) Lessee covenants to “pay the rents and charges at the time and in manner provided” Clause 4(4) “Pay the service charges and any other charges contained herein within 14 days” Fifth schedule of lease contains definition of service charge. Clause 1(3) of the fifth schedule provides for “The Interim Payment” The tenants share of expenditure is stated as “20% of maintenance charge” The Discussion and Decision 15. The applicant submits the charges for all the service charge years, the subject of the [NAME], are correctly incurred and reasonable in extent. The respondent has not offered any evidence to challenge and by email dated 30 May 2025 sent to [RESPONDENT] of [NAME], [NAME] [RESPONDENT], the co-leaseholder states “Just to clarify, there is nothing we’ve disputing and want to pay as promptly as possible.” 16. Each service charge year is considered in turn below taken from the Scott Schedule, in the case of the year ending 2025 the details are taken from the Proposed 2025 Budget [129] Service charge year 2018-2019

5 17. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year of 2018-2019. Item Amount Respondent’s 20% Accountant fees £300

Insurance £1077

D&O Insurance £256

Electricity £147

Management Fee £1308

Company Secretary £240

Bank Charges £10

Reserve fund £2000

Fire Alarm Maintenance £819

Emergency Lighting Testing £40

Repairs and Maintenance £429

Cleaning £172

Total £6798 £1359.60

18. The tribunal determines in the absence of any contrary evidence £1359.60 is payable by the respondent for the service charge year ending 2019. Service charge year 2019-2020 19. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2019-2020. Item Amount Respondent’s 20% Accountant fees £300

Insurance £1104

Insurance valuation £150

Electricity £137

Management Fee £1398

Company secretary £253

Bank charges £7

Reserve Fund £2000

Fire Alarm Maintenance £860

6 Emergency Light Testing £240

Electrical works £245

Repairs and Maintenace £1241

Major works £11129

Total £19064 £3812.80

20. The service charge year contains a sum for major works. The applicant has provided evidence of a section 20 consultation process in respect of the “major works”. The tribunal determines in the absence of any contrary evidence £3812.80 is payable by the respondent for the service charge year ending 2020. Service charge year 2020-2021 21. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2020-2021. Item Amount Respondent’s 20% Accountant fees £300

Insurance £1206

Insurance valuation £252

Electricity £153

Management Fee £1500

Company secretary £240

Bank charges £12

Reserve Fund £2000

Fire Alarm maintenance £970

Emergency Light Testing £250

Repairs and Maintenace £216

Cleaning £130

Health and Safety £84

Major Works £574

Total £7887 £1577.40

7 22. The tribunal determines in the absence of any contrary evidence £1577.40 is payable by the respondent for the service charge year ending 2021. Service charge year 2021-2022 23. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2021-2022.

Item Amount Respondent’s 20% Accountant fees £300

[NAME] £1296

[NAME] £225

[NAME] £148

Management Fee £1560

Company secretary £240

Bank charges £12

Reserve Fund £2000

Fire Alarm £1356

Emergency Light Testing £287

Repairs and Maintenace £1114

Cleaning £130

Health and Safety £1200

Total £9868 £1973.60

24. The tribunal determines in the absence of any contrary evidence £1973.60 is payable by the respondent for the service charge year ending 2022. Service Charge Year 2022-2023 25. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2022-2023.

8 Item Amount Respondent’s 20% Accountant fees £300

[NAME] £1524

Insurance revaluation £194

[NAME] £285

[NAME] £222

Management Fee £1680

Company secretary £240

Bank charges £12

Reserve Fund £2000

Fire alarm maintenance £1468

Emergency Light Testing £372

Repairs and Maintenance £1365

[NAME] -£1200

Major works £6740

TV aerial £450

Total £15652 £3130.40

26. The tribunal determines in the absence of any contrary evidence £3130.40 is payable by the respondent for the service charge year ending 2023. Service charge Year 2023-2024 27. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2023-2024. Item Amount Respondent’s 20% Accountant fees £300

[NAME] £1842

Insurance valuation £0

[NAME] £242

9 [NAME] £388

Management Fee £1800

[NAME] £240

Bank charges £12

Reserve Fund Provision £2000

Fire Alarm Maintenance £1154

Emergency Light Testing £372

Repairs and Maintenace £1138

Health and Safety £126

Total £9614 £1922.80

28. The tribunal determines in the absence of any contrary evidence £1922.80 is payable by the respondent for the service charge year ending 2024. Service charge year budget 2024-2025 29. The applicant requests the tribunal to make a determination of the reasonableness of the items in the service charge year 2024-2025 as set out at [129] Item Amount Respondent’s 20% [NAME] £1200

Cleaning £150

Emergency Lighting Testing £370

General Repairs and Maintenance £1250

Electrical Installation Condition Report and Remedials £1000

10 Fire Door Inspection and Remedials £1008

Asbestos Survey £350.00

Electric £400.00

Management Fees £1908

Accountancy fees £300

Company Administration fees £300

Insurance £1700

Directors and Officers Insurance £300

Contributions transferred to reserve fund £2000

Bank fees £25

Total £12256.00 £2451.20

30. The tribunal determines in the absence of any contrary evidence £2451.20 is payable by the respondent for the service charge year ending 2025. [NAME] under s.20C, para 5A Schedule 11 and refund of fees 31. In the [NAME] form and at the hearing, the applicant being the landlord did not make an [NAME] for section 20C nor paragraph 5A Scheule 11. Nor did they apply for reimbursement of their fees. The applicant did submit in their statement of case that they would object to any request by the respondent in respect of these items. The respondent has made no such request and as such the tribunal does not need to consider whether such an order be made. The tribunal therefore makes no order under section 20C, paragraph 5A schedule 11 or for the reimbursement of the applicant’s fees.

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.

11 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).