Holding Deposit advice

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    Holding Deposit advice

    I'm currently in dispute with a landlady over a £500 holding deposit I put down for a room. I was told I needed to hurry to hold the room as it was in demand so I put the money down but then realised it wasn't financially sound in the long run. I pulled out 4 days later but she is telling me the deposit is non refundable although she never stated that verbally or in writing. I didn't sign the contract and she filled the room within a week of my scheduled move in date so I wanted to pay her a week's rent £96 as a gesture of good will.

    She said she'll give me £250 back and is claiming the other £250 (a week's rent and £154 in other things like petrol and parking to interview other tenants?!)

    Despite the £500 being a holding deposit, I have in writing saying that she was going to put the money into the tenancy protection scheme. I guess once I signed the 12 month contract?

    Do I have a case to fight for my money or should I take the £250 and consider it lesson learned? Any advice would be much appreciated thanks.

    Originally posted by Paul0983 View Post
    Do I have a case to fight for my money or should I take the £250 and consider it lesson learned?
    Nothing you have told us suggests that the LL is entitled to keep any portion of the holding deposit. Claim for the whole £500 via Money Claim Online (first, write a letter before action demanding a full refund, and give her a deadline to pay, after which you state you will start the claim - keep copy letter and obtain a free certificate of posting).

    The only thing you will have to prove to the court is that you paid the £500. If LL wants to defend your claim, she'll have to counterclaim and provide evidence that you are liable for the alleged costs - very unlikely to succeed.

    You do not need a solicitor as it will be allocated to the small claims track. Court fees will be added to the claim. You may find it helpful to buy/borrow a book on the small claims procedure.

    See also this post on the subject of holding deposit by one of our legally qualified members:


      Although holding deposit is different from a tenancy (that happened) deposit there's a sample "Letter before Action" here
      in the deposit section that may help

      Hope it works out..
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


        Hey Art, is there a link for sample letters for LL's seeking to get rent monies owed? ie. like a LBA to a T for unpaid rent, late rent payments etc..


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