Deposit Interest Calculations

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Deposit Interest Calculations

    Hey fellows,

    I am after some legal facts here about the interest calculated on the deposit. Need to know the period it is calculation from.

    Was renting out a 3 bed from 2005 - 2007 for which a deposit was paid at the start in 2005. Landlord has withheld this up till now and will only calculate interest on it from the 2007(from the time it was due) till now.

    I on the other hand am calculating this from the time I placed that money into their bank account.

    note: money wasnt in a DPS as this was back in 2005 and this was a private AST. The AST does not mention anything about the deposit either but only that it is held and will be used to cover and damages. etc

    thanks

  • #2
    Originally posted by Manchester_uk View Post
    The AST does not mention anything about the deposit
    In which case why would you think that you are due to receive any interest at all?

    Comment


    • #3
      Originally posted by Ericthelobster View Post
      In which case why would you think that you are due to receive any interest at all?
      From your standpoint, one can argue the opposite and claim the deposit as it isnt stated that it is NOT to be added on return.

      my dear friend. not all tenant rights are listed in the AST. This doesnt mean I wouldnt be entitled to those right. The AST doesnt even mention the time period as to when the deposit should be returned by the LL. This wouldnt mean that the LL can come back at me and say "I can return the deposit whenever I like because there is no mention of the time period is to be returned at"

      Your not helping. If you read my post. The interest is being paid by the LL. I just need to know from when. Would appreciate if you can advise on this.

      Comment


      • #4
        Have a look at this:-


        2007 No. 798

        Housing, england and wales
        The Housing (Tenancy Deposits) (Specified Interest Rate) Order 2007

        Made

        13th March 2007

        Coming into force

        6th April 2007

        The Secretary of State, as respects England, and the National Assembly for Wales, as respects Wales, in exercise of the power conferred by paragraph 3(5)(b) of Schedule 10 to the Housing Act 2004(1), make the following Order:
        Citation and commencement

        1. This Order may be cited as the Housing (Tenancy Deposits) (Specified Interest Rate) Order 2007 and shall come into force on 6th April 2007.
        Specified interest rate

        2. For the purposes of paragraph 3(5)(b) of Schedule 10 to the Housing Act 2004 the specified interest rate is a rate equivalent to the base rate of the Bank of England less 2.32 percent.

        Signed by authority of the Secretary


        You can google the rest of the thing easily enough, on the face of it though you might have to top it up. I think this only applies to the various tenancy deposit schemes though.
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


        • #5
          Originally posted by Manchester_uk View Post
          not all tenant rights are listed in the AST.
          Hi,

          This is true, but those that are not are implied by some specific rule of law. I'm not aware of any rule requiring the landlord to pay interest on a deposit I'm afraid. For this reason, its always good to cover this explicitly in the tenancy agreement.

          My view would be that if you have persuaded the landlord to pay interest from the date the tenancy ended, you have probably done a good job.

          As for the interest rate, again, it would be a matter for negotiation. Tenancy agreements with "interest" clauses will usually link the calculation to the standard lending rate of one of the major banks, plus a margin, which typically might be between 2 and 4%.

          Good luck

          Preston

          Comment


          • #6
            You do realise that it isn't calculated as interest above base rate per month don't you?
            It will be calculated at around 4% over base rate annually.
            ie deposit £500 kept for 6 months @ (2%br + 4%ast) 6% = £15 interest ish
            Take what has been offered from the end of the tenancy as this is reasonable especially as these rules were introduced for scheme held/protected deposits for which your deposit does not qualify under HA04.
            If you're not happy go to court and pay more (in time & money) to reclaim less, if you see what i mean.
            I don't believe you have any 'right' to the deposit interest during the tenancy if this was not agreed prior to the tenancy and put in writing.
            Good luck!

            Comment


            • #7
              Originally posted by sherifffatman View Post
              I don't believe you have any 'right' to the deposit interest during the tenancy if this was not agreed prior to the tenancy and put in writing.
              Good luck!
              I have just had some legal advise on this from a property solicitor. seems like I have a good chance of claiming interest on the deposit from the time the deposit was paid into the LL's acc. The 3 deposit schemes work in a completely diff way. One keeps the interest as an expense for running the scheme, the other pays it back to the LL(i think) and DPS returns the deposit with interest to the Tenant.

              due to the fact nothing is mentioned in the AST, there can be a good argument for and against it. nowhere does it say I dont have the right to it or wise versa. It really depend on how I put forward my case to the judge.

              With all honestly. from a personal stand point. LL's who think they can get away with not paying deposit money back to their T's who have looked after their property like their own, changing their address/name/phone number and ignoring all requests for repayment should be penalized and charged interest to the MAX.

              Comment


              • #8
                Originally posted by Manchester_uk View Post
                With all honestly. from a personal stand point. LL's who think they can get away with not paying deposit money back to their T's who have looked after their property like their own, changing their address/name/phone number and ignoring all requests for repayment should be penalized and charged interest to the MAX.

                With all respect, we are trying to help LLs and Ts on this forum, you, of course, are entitled to your opinion, but you are arguing over a very minimal amount of money.
                I offer no guarantee that anything I say is correct. wysiwyg

                Comment


                • #9
                  Originally posted by jta View Post
                  but you are arguing over a very minimal amount of money.
                  apologies if this discussion sounds like an argument. for your understanding, for me, this is a difference of 100pounds and 500pounds. 500pounds for me isnt a minimal amount and neither is the 17 months + money I have spent chasing this.

                  Comment


                  • #10
                    Fair enough, suppose you tell us exactly how much the deposit was?
                    Landlords were not bound to give interest before 2007, (I may be wrong) but we could work out what interest you should get on your money, all things being equal, since then.

                    It probably wont be as much as you think.
                    I offer no guarantee that anything I say is correct. wysiwyg

                    Comment

                    Latest Activity

                    Collapse

                    • This is a NO isn't it? Seems iffy to me, what do you think?
                      Berlingogirl
                      This is a NO isn't it? Seems iffy to me, what do you think? Any insights? My ad is on Gumtree.



                      "Hello, I'm A***** a British America Business man, I have a business project in your area and I'll like to rent your apartment for the period of 6 month and I'll like to know...
                      27-07-2017, 13:57 PM
                    • Reply to This is a NO isn't it? Seems iffy to me, what do you think?
                      Berlingogirl
                      I'm trying to , jta, but I think he knows I know....
                      27-07-2017, 20:16 PM
                    • Extremely anti-social and criminal tenant -Section 8
                      BouwensPB
                      I have an extremely anti-social and criminal tenant. My neighbours think she is possibly a sex worker and drugs abusing and dealing. She has made a witnessed and CCTV sited assault on one neighbour and has verbally abused others. 3 crimes have been reported and the local authority talk about making...
                      26-07-2017, 16:09 PM
                    • Reply to Extremely anti-social and criminal tenant -Section 8
                      Wright76
                      You are also aware you are now liable to pay her a penalty of up three times the deposit value?.

                      My experience of a drug addict is that they will leave with a financial offering.

                      Strike a deal taking into account your likely penalty and eviction costs and offer her an amount...
                      27-07-2017, 19:10 PM
                    • Reply to Extremely anti-social and criminal tenant -Section 8
                      theartfullodger
                      Check insurance for what you must do knowing what you do....
                      27-07-2017, 19:00 PM
                    • Tips for making a good impression when meeting a landlord
                      purpleangel
                      Our potential new landlady has 'approved us in principle' but wants to meet us at the house as the final part in the referencing process. Beside the obvious such as look smart, tidy and professional and warn the kids to behave, any particular tips for making sure this last hurdle goes smoothly?
                      26-07-2017, 10:11 AM
                    • Reply to Tips for making a good impression when meeting a landlord
                      Wright76
                      Some of the above comments are crazy!. If they have aleady done their referencing and credit checks then they likely just want to meet you.

                      As someone said above, they are trusting you with their very valuable asset.

                      As a landlord I couldn't care less what clothes someone...
                      27-07-2017, 19:00 PM
                    • Landlord Address
                      bsward
                      Hello,

                      Tenancy finished a couple of months ago. The landlord withheld part of the deposit for a variety of reasons. As the tenant, I disputed those deductions as incorrect - they contradict the Checkout Report which was completed by an agent of the Landlord but that's besides the point....
                      27-07-2017, 09:58 AM
                    • Reply to Landlord Address
                      theartfullodger
                      As the tenancy has finished you have no right to his address from agent.

                      Have you spent £3 with land registry to get deeds of property & see who is listed as owner & what address?? (Landlord may not be owner... legal, no very uncommon...)
                      https://www.gov.uk/search-propert...
                      27-07-2017, 18:59 PM
                    • Tenant's energy debt.
                      Gordonmrln
                      I am a landlord of a 2 bed end terrace, the property is owned out right. I am registered Disabled and this was the main reason I decided to rent my property out. As it was not a suitable property for my Disability. I would have to make some major changes that would devalue my property like installing...
                      20-07-2017, 22:08 PM
                    Working...
                    X