Jace Court, Priory Road
- The building
- 31 flats mainly on three storeys, brick under a slate mansard roof, attached to a similar block with which it originally formed part of a former college building.
- What was applied for
- A determination under section 27A of the Landlord and Tenant Act 1985 of service charges across seven years, with section 20C and paragraph 5A applications.
- The figures
- 31 flats. Total disputed about £85,000. Management fees charged at 6,700 to £9,500 a year and determined at 3,350 for every year. Gas arrears almost £90,000.
- Costs
- Section 20C and paragraph 5A orders made so no costs may be recovered as service or administration charges, notwithstanding that none appear to have been incurred. Tribunal fees ordered reimbursed within 28 days.
What Happened
The landlord was barred from relying on evidence after failing to serve a statement of case despite an extension, and neither attended nor was represented. The communal gas account was in disarray: years of estimated readings, a supplier insolvency and switch, large unexplained bill reversals, and arrears approaching £90,000 despite leaseholders having paid what was demanded.
What the Tribunal Held
The tribunal decided on the leaseholders' evidence alone and had to exercise its experience and skill as an expert tribunal to determine reasonable charges, doing the best it can. It found the landlord had failed to manage the gas account to an acceptable standard, failed to account properly and had not disclosed the dispute on charges in a timely manner. Gas charges were reconstructed from the 2018 actual figure using government price indices. Management fees were halved for every year with no increase allowed. A reserve fund was payable in principle but, with no capital account disclosed, the budget figure was determined at nil, as were estate costs, bulk rubbish and water tank management. Debt and late payment charges were not payable. Where the leaseholders' money had gone was expressly outside a section 27A jurisdiction.
What it means for a block here. A landlord that ignores directions and does not turn up does not get a neutral outcome. The tribunal reconstructs reasonable charges from the leaseholders' evidence alone, and unexplained budget lines are determined at nil.