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walsingham

Keep Hold Deposit If Reference Check Not To Their Liking

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hi - we are about to enter into a prelet agreement which states that if the credit check does not fulfill their criteria( what ever that is ) they can keep our entire holding depost ( 530 pounds on a 1150 PCM property ) not just the reference fee , in fact the only way we can get it back is if the LL backs out.

We have not seen a tenancy agreement yet either, just this prelet which says we agreet to rent it out for such and such amount and the lease period and start date . ( which sounds a bit like a loose tenancy agreement)

We feel very uncomfortable with this as we have only been renting in UK for two years but have good letting history ( no kept deposits ect ) credit and jobs - this is not a "high street "letting agent either, they just have one office and a couple employees it seems .

is this normal- i do not recall our previous LA ever using this verbage or amount ratio.

thanks

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I have come across this - i think it may be the norm in London, for example. What surprises me is how large the holding deposit is.

I have only ever had to pay 1 week + credit check fee. 2 weeks non refundable is taking the p!ss.

Edit: Have you asked or can you ask them to justify the holding deposit? Normally the credit check takes max 4 days. If your credit were to be dud, I don't see how that equates to a 2 week rent penalty.

Edited by Toilet-Currency

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I have come across this - i think it may be the norm in London, for example. What surprises me is how large the holding deposit is.

I have only ever had to pay 1 week + credit check fee. 2 weeks non refundable is taking the p!ss.

Edit: Have you asked or can you ask them to justify the holding deposit? Normally the credit check takes max 4 days. If your credit were to be dud, I don't see how that equates to a 2 week rent penalty.

You're right - we are in London , haven't asked for justification on holding amount , but our spidey senses are a' tingling and i think ill be calling tomorrow to just get out of this. I just wanted to make sure i wasn't just being paranoid.

thanks all for answering

-w

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You're right - we are in London , haven't asked for justification on holding amount , but our spidey senses are a' tingling and i think ill be calling tomorrow to just get out of this. I just wanted to make sure i wasn't just being paranoid.

thanks all for answering

-w

I think it is unlawful (not not illegal) check the OFT website and look for the OFT 356 guide

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hi - we are about to enter into a prelet agreement which states that if the credit check does not fulfill their criteria( what ever that is ) they can keep our entire holding depost ( 530 pounds on a 1150 PCM property ) not just the reference fee , in fact the only way we can get it back is if the LL backs out.

We have not seen a tenancy agreement yet either, just this prelet which says we agreet to rent it out for such and such amount and the lease period and start date . ( which sounds a bit like a loose tenancy agreement)

We feel very uncomfortable with this as we have only been renting in UK for two years but have good letting history ( no kept deposits ect ) credit and jobs - this is not a "high street "letting agent either, they just have one office and a couple employees it seems .

is this normal- i do not recall our previous LA ever using this verbage or amount ratio.

thanks

If this ever got to court the LL would have great difficulty convincing a judge that his "not accepting your reference" wasn't the same as "him backing out".

It isn't legal

tim

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If this ever got to court the LL would have great difficulty convincing a judge that his "not accepting your reference" wasn't the same as "him backing out".

It isn't legal

tim

I would think you're right , when i called to call it off today i got this gem: we wouldn't get to see the tenancy agreement , TILL THE day we got the keys...which she seemed almost annoyed i was asking about it, after all she said," it's just a standard tenancy agreement"

It's a shame the LL went with the cheapest sleazy LA, we would really like to get into that rental .

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hi - we are about to enter into a prelet agreement which states that if the credit check does not fulfill their criteria( what ever that is ) they can keep our entire holding depost ( 530 pounds on a 1150 PCM property ) not just the reference fee , in fact the only way we can get it back is if the LL backs out.

We have not seen a tenancy agreement yet either, just this prelet which says we agreet to rent it out for such and such amount and the lease period and start date . ( which sounds a bit like a loose tenancy agreement)

We feel very uncomfortable with this as we have only been renting in UK for two years but have good letting history ( no kept deposits ect ) credit and jobs - this is not a "high street "letting agent either, they just have one office and a couple employees it seems .

is this normal- i do not recall our previous LA ever using this verbage or amount ratio.

thanks

walk away... plenty of better deals around!

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Alternatively...screw the middle man and rent directly with a LL. Plenty in local paper I bet.

Edited by flatnose

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I paid a similar amount last time I moved. (South West London).

Worked out fine, but if in the same position again and with more time on my hands, I hope

I'd walk away.

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hi - we are about to enter into a prelet agreement which states that if the credit check does not fulfill their criteria( what ever that is ) they can keep our entire holding depost ( 530 pounds on a 1150 PCM property ) not just the reference fee , in fact the only way we can get it back is if the LL backs out.

We have not seen a tenancy agreement yet either, just this prelet which says we agreet to rent it out for such and such amount and the lease period and start date . ( which sounds a bit like a loose tenancy agreement)

We feel very uncomfortable with this as we have only been renting in UK for two years but have good letting history ( no kept deposits ect ) credit and jobs - this is not a "high street "letting agent either, they just have one office and a couple employees it seems .

is this normal- i do not recall our previous LA ever using this verbage or amount ratio.

thanks

I've come across this before in north london. I always refuse to have anything to do with holding deposits and pre-lets; lost a few this way - but it's a killer indicator of a scum agent (well ... slightly more scummy might be a more accurate way to put it).

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I got stitched on this when l was a student 18/19. Basically we had to provide £50 ea (worked out about £250) as part of this pre-let rubbish, before we could even see the tenancy agreement! Once we got it, it had some slightly weird clauses that we ran past a friendly legal bod who told us to walk away. £250 gone for nothing.

Once bitten...

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