Holding deposit refund on commercial premises

by Readers Question

3 years ago

Holding deposit refund on commercial premises

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Holding deposit refund on commercial premises

I paid a holding deposit to a commercial landlord to reserve a premises pending a planning application. Holding deposit refund on commercial premises

The council requested specific information from the landlords in regards to the marketing of the premises in order to justify a change of use.

The landlords response did not provide adequate information resulting in refusal of the change of use.

I would like to know where I stand in regards to a refund. There was no written agreement therefore there is nothing to state my money is non refundable and their non compliance of assistance with the planning application (for which I have email correspondence of) had a great impact on not being able to enter in the proposed tenancy agreement




Mark Alexander

3 years ago

Hi Rayna

Disputes of this nature need to be dealt with via the Small Claims Court if they cannot be settled amicably.

This is because deposit protection legislation is not applicable in the circumstances that you have outlined.

Nick Pope

3 years ago

So far as I know unless a holding deposit is specifically non-refundable then it is re-payable on request without deduction. It would be interesting to know if the value of the landlord's investment would have been increased if the planning had been granted say by change of use from A1 (broadly retail) to A5 (hot food takeway).

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