Holding deposit refund on commercial premises
I paid a holding deposit to a commercial landlord to reserve a premises pending a planning application.
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
Thanks
Rayna
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Member Since January 2011 - Comments: 12216 - Articles: 1411
11:57 AM, 25th May 2015, About 11 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.
.
Member Since August 2013 - Comments: 179
1:53 PM, 30th May 2015, About 11 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).