Non-refundable holding deposit- breach in terms?

amaliaie

Hello,

As a group of three sharers, we paid £900 as a holding deposit after our offer was accepted on a flat based on the following:

1) The price per month
2) One tenant to pay 6 months rent upfront due to job seeking currently

The two other tenants were told they would not need guarantors due to having jobs in place (of which our occupation was made clear) which paid more than the requisite amount, including contracts with a start and end date, and agreed salary.

However, the agency has now stated that due to our occupation, we will need guarantors for the apartment. Unfortunately, one tenant does not have anyone to use as guarantor, nor 6 months rent to offer upfront and the other tenant's guarantor is unwilling to be guarantor for the entire property.

The agents have been informed and are taking time to consider their response. In the meantime, we have found somewhere we prefer, where the agents are aware of our financial and occupational status and need to move asap to secure it.

Would suddenly requiring guarantors after the offer has been accepted and holding deposit charged be a breach in terms of the proposed agreement and therefore grounds for a refund of the holding deposit?

Many thanks.

G_M

Your word against the agent's? What was written on the receipt for the deposit? What other written confirmation is there of the terms under which the deposit was accepted?

It is quite common for a holding deposit to be taken and a property 'held' subject to credit checks etc.

However, if the conditions were as you describe, and the agent 'changed their minds' about requiring a guarantor etc, then yes, the full amount should be returned.

Put your request in writing, making clear under what conditions you paid and in what way the agent has altered their requirements.

As a aside, is this a single 'joint and several' tenancy ie all 3 names on a single contract? If so, the rent cannot be subdivided such that "One tenant to pay 6 months rent upfront" and the others don't, as they do not have individual rents to pay.