Ground Floor Flat, 3 Elcot Avenue, London SE15 1QB LON/00BE/LSC/2019/0026
DECISION
Decisions of the tribunal(1) The tribunal determines that the sums of (i) £13,905.50, (ii)£183.60 and £458.50 are payable by the Respondent in respect of the service charges for the years 2018-2019.(2) The tribunal makes the determinations as set out under the various headings in this Decision 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 Respondent in respect of the service charge years 2018-2019.[2]The relevant legal provisions are set out in the Appendix to this decision. The hearing[3]The case was considered on paper at 10 Alfred Place London. Written representations were received from both parties. The background[4]The property which is the subject of this application is a two-storey terraced house converted into two flats.[5]Photographs of the building were provided in the hearing bundle. The respondent requested an inspection but the tribunal did not consider that one was necessary, nor would it have been proportionate to the issues in dispute.[6]The Respondent holds a long lease of the property which requires the landlord to provide services and the tenant to contribute towards their costs by way of a variable service charge. The specific provisions of the lease will be referred to below, where appropriate. The issues[7]At the start of the hearing the parties identified the relevant issues for determination as follows: (i) The payability and reasonableness of advance service charges for 2018-2019 relating to external repairs and general management.[8]Having considered all of the documents provided, the tribunal has made determinations on the various issues as follows. Insurance[9]The landlord has provided a service charge budget for the year 2018 to 2019. The budget shows an insurance premium for the building of £524.58 of which the lessee’s responsibility is for 35%. There is no evidence before the tribunal to suggest this is not a reasonable premium. The tribunal’s decision[10]The tribunal determines that the amount payable in respect of insurance is £183.60 being 35% of £524.58 . Management fees[11]Management fees are claimed in two parts. Firstly a fee of £560 being the general management fee and secondly a managing agent’s fee of £750 for the section 20 consultation. Each of these is claimed at a rate of 50%. No explanation is given for the percentage charge. The tribunal’s decision[12]The tribunal determines that the amount payable in respect of management fees is £655.00 being 50% of £1310. Reasons for the tribunal’s decision[13]The service charge percentage is set in the lease at 35% applicable to the ground floor flat. No explanation has been given as to why 50% has been charged. However, the rate has not been challenged in the leaseholder’s response. The tribunal notes that a 50% charge was accepted by a differently constituted tribunal in a case concerning the first floor flat under reference LON/ooBE/LSC/2018/0283. While that decision is not binding on this tribunal, clause 3 (4) of the lease arguably gives the landlord some discretion over the percentage and as the rate is not challenged, we accept it. External repairs[14]External repairs and general items are claimed in the sum of £13,905.50 being 35% of £39,730 as set out in the table below.[15]The main area of complaint by the respondent is in relation to the external repairs in the sum of £35,000. The respondent considers this figure to be excessive. No alternative specification or comparable estimate is provided. The remaining items were not challenged.[16]The claimant landlord has provided a detailed specification prepared by a chartered building surveyor and copies of three estimates obtained as part of a consultation under section 20 of the landlord and tenant act 1985. The tribunal notes that this was accepted in the case relating to the first-floor flat as being a reasonable estimate. This tribunal agrees with that view. The tribunal’s decision[17]The tribunal finds that the amount claimed of £13,905.50 for the items listed above is reasonable in respect of an advance service charge. When the works have been completed, the final reconciliation of the service charge will be challengeable by the leaseholder under section 27A in respect of items which may be unreasonable. Name: Mr A Harris LLM FRICS FCIArb Date: 12 March 2019 Valuer Chair 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).