Both landlords and tenants can apply to the First-tier Tribunal (FTT) for a determination of whether a service charge is payable. Recently, a landlord was successful in applying for a determination that a leaseholder was liable to pay it £11,371 in respect of seven years’ service charges.
The leaseholder held a long lease over a flat in a block of flats. Her lease obliged her landlord to provide services and required her to contribute towards the costs of these by way of a variable service charge.
The landlord claimed that the leaseholder had failed to engage with it for three years. After she failed to attend a hearing, the FTT ordered that unless she served a detailed statement of any matters she disputed, she should be debarred from taking further part in the proceedings and it would be declared that she owed the landlord the sum it sought. However, she failed to do so.
The FTT considered the service charge demands and other documents provided by the landlord, and noted that the leaseholder had not challenged any of the service charges. Determining that the amount sought by the landlord was payable, the FTT considered that the service charge demands were due and owing under the terms of the lease and were reasonable. The leaseholder was also ordered to reimburse the landlord’s application fee of £310 within 28 days.