[2025] UKUT 120 (LC)

Fecha: 03-Abr-2025

Introduction

Introduction

There are four issues in this appeal from a decision of the First-tier Tribunal, Property Chamber (the FTT) in which it determined an application under section 27A, Landlord and Tenant Act 1985 by the respondent, Mrs Folasade Jibike Abiola, concerning the amount payable to the appellant, PC Residents (Finchley Road) Ltd, as service charges under the lease of her flat at 25 Palace Court in Finchley.

The FTT determined that there were significant surpluses on the service charge accounts for the building for the years 2019 to 2022, and these should be repaid to the leaseholders rather than being retained in a reserve fund. It recorded significant reductions in the service charges payable for those years which it said had been agreed between the parties. And it made an order under section 20C, Landlord and Tenant Act 1985 protecting the respondent from liability to contribute to the costs of the proceedings through the service charge.

The issues for which this Tribunal gave permission to appeal are:

Whether the FTT misunderstood or overlooked evidence when it determined the amount of the surpluses for the years 2019 to 2022.

Whether the appellant is entitled to retain any surplus as an additional contribution towards the reserve fund or whether it is required to repay or credit the relevant share of any surplus to each leaseholder’s service charge account.

Whether the FTT misunderstood what it was told during the hearing and inaccurately recorded what the parties had agreed about certain charges for repair and maintenance.

Whether, in view of the errors said to have made by the FTT, its decision to make an order under section 20C should be set aside and redetermined.

At the hearing of the appeal the appellant was represented by Michael Dickin. The respondent had been represented by counsel before the FTT and filed a response to the notice of appeal, but she did not attend and was not represented at the hearing of the appeal.