Updated 28th March 2019
Terms and Conditions - Holding Deposits
A refundable Holding Deposit of no more than one weeks’ rent is a payment made by a tenant to a landlord (or to an agent acting on the landlord’s behalf) to reserve a specific property.
Current legislation requires agents and landlords to refund a Holding Deposit except in circumstances where:
- the tenant withdraws unilaterally,
- fails a Right to Rent check or
- provides false or misleading information, which the landlord is reasonably entitled to consider in deciding whether to grant the tenancy because this materially affects their suitability to rent the property. False or misleading information is information provided by the tenant that is not factually correct and seriously affects the landlord’s decision to let the property.
If the landlord decides not to rent the property to the tenant or fails to take reasonable steps to enter into the tenancy agreement by the deadline for agreement, then the Holding Deposit must be refunded within seven days of the date of that decision or the deadline for agreement.
The deadline for agreement is 15 days following the receipt of the Holding Deposit for the landlord to enter into an agreement with the tenant to grant the tenancy (unless an alternative date is agreed in writing with the tenant).
Landlords may ‘repay’ the Holding Deposit by allowing the tenant to deduct the equivalent sum from the first payment of rent or the Tenancy Deposit.
Lenwell’s application of the Holding Deposit
Upon receipt of the Holding Deposit, the property will be taken off the market while checks are carried out.
By paying the Holding Deposit, the tenant is confirming that:
- All necessary financial disclosures have been made which may result in a Reference failure,
- All necessary disclosures have been made which may result in a failure of the Right To Rent checks,
- All necessary disclosures have been made in relation to past rental histories
- Any other information that may, upon discovery lead to a failure in the referencing process.
Deadline for agreement
The tenant confirms that the deadline for agreement will be 30 days from payment of the Holding Deposit.