Flat 2, 133 Marina, St Leonards On Sea , East Sussex, TN38 0BT HAV/21UD/LSC/2024/0637
FIRST-TIER TRIBUNAL
PROPERTY CHAMBER (RESIDENTIAL PROPERTY)
Case No HAV/21UD/LSC/2024/0637
Between
133 Marina LimitedApplicant1) Paul Anthony Leadley and 2) Ellen Kirsten SvennevigRespondent
Before
R Waterhouse FRICSArko Property Management for the ApplicantNone Determination of the liability to pay for the RespondentVenue Determination on PapersDate 17 July 2025Property: East Sussex, TN38 0BTType of application: service charges under section 27A of the Landlord and Tenant Act 1985
DECISION
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 application[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 application 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: “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 Havant Justice Centre, Elmleigh Road, Havant, PO9 2AL.[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 George Okines of Arko Property Management and Mr Khan 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 application preventing the landlord from recovering the costs of the proceedings through the service charge• Para 5A Schedule 11 application 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 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 application 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 application, 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 George Okines of Arko Property Management, Paul Leadley, 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[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 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[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 Building Insurance £1296 Directors Insurance £225 Communal Electricity £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. Item Amount Respondent’s 20% Accountant fees £300 Building Insurance £1524 Insurance revaluation £194 Directors Insurance £285 Communal Electricity £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 Health and Saftey -£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 Building Insurance £1842 Insurance valuation £0 Directors Insurance £242 Communal Electricity £388 Management Fee £1800 Companies House £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% Fire Alarm Maintenace and Testing £1200 Cleaning £150 Emergency Lighting Testing £370 General Repairs and Maintenance £1250 Electrical Installation Condition Report and Remedials £1000 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. Application under s.20C, para 5A Schedule 11 and refund of fees[31]In the application form and at the hearing, the applicant being the landlord did not make an application 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. 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 regional office which has been dealing with the case. The application for permission to appeal must arrive at the regional office 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).