UK Landlord Forum / Life

Hi

I need some advice please on holding deposits.

I sold my house and was due to exchange and complete last Friday. Unfortunately the first buyer on the chain has delayed out completion date for six weeks.

Because I was informed of exchange dates and repeatedly told exchange would happen I placed a holding deposit of £1100 on a property I was going to rent.

The letting agent is telling me that the holding deposit is non refundable?

I feel that I was led to believe if I didn't put a holding deposit down that I would loose the property. I can understand the agency retaining their fees of £175. It does seem somewhat unfair that I loose £1000 for something that is totally out of my hands. The agency have said that the landlord is retaining the fees because of lost time. I gave them notice of the non exchange 3 days before I was due to move into the rented accommodation. I am also aware that the property was still being advertised on right move.

Can anyone please advise or signpost me to where I can get help from?

Thanks in advance

Uzma

It is generally accepted that a holding deposit would be non-refundable.

However, it is also generally accepted that plenty of people are too stupid to realise this and plenty of people act rashly, you're a case in point with the way you've proceeded with this. You can moan and gripe about it being out of your hands all you want... that's why the holding deposit was taken, so that if you pulled-out - for any reason - then the Landlord / Agent would not lose-out. However, the silver lining for you is that holding deposits (because of what I said before) can be a grey area... and the Agent / Landlord should really be able to demonstrate that the non-refundable nature of this holding deposit (despite its name being "holding deposit) was very clearly communicated to you as being non-refundable. Do you think they could do that? if not, you could persist in challenging this... the trouble you have is that they currently have it... so you have the added complication of getting it back. I would suggest negotiation (or, at least, an attempt) before going down any legal route.

You have to ask... what did you think it was for? What did you think would happen to it if you pulled-out of the deal? Or did you just think that would never happen, as people will do?

Don't worry, it's natural - people hope for and believe the best will happen.

BTW - the Landlord or Agent won't care why you've dropped-out, whether it's your fault, or you're a complete casualty of unfortunate circumstance.

You complain that it is not fair for you to be out of pocket due to circumstances beyond your control,so pray why do you think it is reasonable for the landlord to lose money because of the same situation? Three days notice is totally inadequate for them to get someone else into the house.Even if you can use some legal loophole,you would probably have to go to court.Morally,I don't think you are at all justified in expecting this to be refunded.Could you not have just moved in as agreed,even if this meant taking out a short-term loan to cover expenses? Six weeks is not very long.