Charges for renting, good faith paid

Stoneybridge

I've recently paid a good faith payment for a flat that was advertised as as having a half price first months rent of £180 and bond of £450 to a letting agency

I was told at the time there would be an admin charge but not how much and an application form that i filled in asked for details of tenants insurance which i left blank.

I've received an application form for insurance which hand written on the front says its obligatory to have ( the application also asks if not their insurance then details of an other insurer )

and details of their charges which are (inc. VAT) £75 for tenancy agreement, £125 for reference fee and £125 for admin fee

All together £1155 with the insurance.

This seems awfully steep, were would i stand, not having signed any agreement getting my good faith payment back if i decide they are rather too expensive?, and do i really need that insurance as the bond is quite high anyway?, btw the flat is unfurnished and tbh is located in a rather run down area and has had the minimum done to it for rental

It_can_get_better

Those fees are high, but agents can charge whatever they like. Did you get any kind of receipt for the money you paid? It's likely to be a holding deposit to take the property off the market and will be used for rent or your security deposit. If you pull out they probably won't give it back.

You don't have to take their insurance, but if they want that as a term of the tenancy you may have to purchase it. There's nothing to stop you taking out your own policy and then cancel it once the details have been given to the agent.

G_M

Take out your own insurance (Check if there is a cancelation fee.)
Show them the policy.
Get the tenancy agreement signed
Cancel the insurance (14 days).

Stoneybridge

Hi thanks for the replies,, the receipt just calls it a "good faith deposit"

where would i stand legally if they refused to give it back after not disclosing (deliberately withholding?) the fees beforehand?

their term and conditions also have a clause that allows them to add a further £100 for other " reasonable preparation costs " I've been looking at the OFT website and their charges don't seem very fair, asking about it seem their prices more than twice what is usual where i live