5 NAYLOR ROAD, ELLESMERE PORT, CH66 1SD ((Leasehold) disputes (management) - Administration charges) -[2022] UKFTT MAN_00EW_LAC_2021_0005- (19 April 2022)

Key Facts

Issues

• The Respondents failed to respond to multiple directions and letters, leading the Tribunal to bar them from further participation and determine all issues against them under Rule 9(3)(a), 9(7)(a), and 9(8).
• The Tribunal ruled it lacked jurisdiction over six ground rent payments (£750) but had jurisdiction over the remaining £756.78 administration charges.
• The Tribunal determined that the administration charges of £756.78 were not chargeable under the lease terms, improperly calculated, or unreasonable, leading to an order for repayment.
• The Tribunal ordered that the landlord cannot charge litigation costs related to these proceedings as an administration charge or consider them for service charge calculations under the relevant legislation.

Holdings

• The Tribunal further orders that the landlord cannot include litigation costs in service charge calculations, as per section 20C of the Landlord and Tenant Act 1985.
• The Tribunal orders the landlord not to charge litigation costs related to these proceedings as administration charges, in accordance with the Commonhold and Leasehold Reform Act 2002, paragraph 5A of schedule 11.
• The Tribunal determines that it does not have jurisdiction to consider the six ground rent charges of £125 each, as they fall under the County Court's jurisdiction. The application regarding these charges is struck out, leaving £756.78 in administration charges to be considered.
• The Applicant is entitled to repayment of £756.78 paid in administration charges, as they were not chargeable under the lease terms or improperly calculated. Bellway Homes Limited must repay this amount within 14 days.
• The Tribunal bars the Respondents (Bellway Homes Limited and Mainstay Residential Limited) from further involvement in the proceedings due to their failure to comply with Directions and subsequent letters. All remaining issues are determined against the Respondents.

Remedies

• The Tribunal orders that the landlord shall not regard any costs in these proceedings as being relevant to the calculation of service charges, pursuant to section 20C of the Landlord and Tenant Act 1985.
• The Tribunal orders that the landlord shall not charge any litigation costs in relation to these proceedings as an administration charge against the Applicant, pursuant to the Commonhold and Leasehold Reform Act 2002, paragraph 5A of schedule 11.
• The Tribunal orders Bellway Homes Limited to repay £756.78 to the Applicant within 14 days of the Decision being sent to the Parties.

Monetary Damages

Legal Principles

Cited Statute

• Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013 (as amended)
• Commonhold and Leasehold Reform Act 2002
• Landlord and Tenant Act 1985

Judge Name

Passage Text

• The Tribunal decides that it is fair, just and equitable to order that the landlord shall not charge any litigation costs in relation to these proceedings as an administration charge against the Applicant... nor regard any costs in these proceedings as being relevant to the calculation of service charges.
• The Tribunal has been left with no way of ascertaining what the administration charges might actually be for, under what provision of the lease they have been charged, whether or not they are chargeable at all and whether or not they have been charged in accordance with paragraph 4 of schedule 11 of the Commonhold and Leasehold Reform Act 2002.
• The sum of £756.78 has been paid by the Applicant to the Respondents when it should not have been paid and Bellway Homes Limited must repay £756.78 to the Applicant within 14 days of this Decision being sent to the Parties.