Holding Deposit
In England under the Tenant Fees Act 2019 Holding Deposits are limited to the equivalent of one weeks rent. This is paid in order to reserve a property. This is calculated by multiplying the monthly rent by 12 to establish the annual rent, then dividing the annual rent by 52. The Holding Deposit will be required to be paid once your offer is accepted. Should you pass the referencing and continue with the Let of the property the holding fee will be deducted from the balance of your first months rent in advance. Should you change your mind after the referencing has been concluded then the holding fee will be non- refundable and used to cover the referencing cost’s.
Tenant Deposit
From 1 June 2019 landlords in England are limited to the equivalent of 5 weeks rent for new and renewed tenancies (or 6 weeks if the annual rent is £50,000 or more). This is calculated by dividing the annual rent by 52 and multiplying by 5 (or 6 if rent is £50,000 or more) and will be required to be paid at the start of the tenancy. This is subject to referencing.
Tenant Fees Act 2019 permits certain fees / charges to be made under the following circumstances:
| # | Fee | £ inc. VAT | Explanation |
|---|---|---|---|
| 1. | Default fee for late payment of rent | see explanation | Chargeable from 14 days arrears calculated on the interest at 3% above Bank of England base rate on the late payment of rent for each day that the payment is outstanding. |
| 2. | Loss of a key or other security device | see explanation | Landlords and letting agents can charge a tenant a fee to cover the cost of replacing the lost key or security device (e.g. fob, electronic device for garage doors / security gates). |
| 3. | Payment on variation, assignment or novation of a tenancy | £50 | When a tenant has requested it, landlords and letting agents can charge to vary, assign or replace a tenancy. Fee charge £50 (including VAT) |
| 4. | Payment on termination of a tenancy | see explanation | Landlords and letting agents can require a tenant to make a payment for an early termination (surrender) of the tenancy agreement at the tenants request. |
| 5. | Company application fee | £100 | £100 including VAT |
Client Money Protection Certificate
Find out how much your home is worth
Want to know how much your property could be worth? For a free, no-obligation market appraisal click the button below and one of our team will produce an accurate, current market valuation for you.