[2023] UKUT 231 (LC)

Management fees

Before the FTT Mr Lacy argued that the costs of management of the building were not reasonable The FTT disagreed, and he does not have permission to appeal that finding.

However, he also said that the respondent had been given a 50% discount in 2015/16 by its managing agents, which had not been passed on to the leaseholders. The FTT agreed, and said that the applicant’s service charge for that year should have been reduced by his share of the discount, being 13.33% of £277.58 which is £36.92. However, it had found that the management charges for 2015/16 were among those paid and thereby admitted by the appellant, so that the FTT regarded itself as having no jurisdiction as regards that charge.

The FTT’s finding about jurisdiction has been set aside. The respondent made no observations about this point. I therefore substitute the decision that FTT would have made on this point had it understood that it had jurisdiction, namely that the amount charged to the appellant in respect of management charges for 2015/16 is to be reduced by £36.92.