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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7434
Experience:  BA (Hons), PgDip, Practising Solicitor
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Dear UK law Is it reasonable for a landlord

Resolved Question:

Dear UK law
Is it reasonable for a landlord to request a deposit(£4,000) with the lease agreement - it is for small clinic for a 5 year lease with a break clause after 3 years.We are already paying 6 months rent in advance, and £10,000 on repairing and upgrading the property.Isd it reasonable for us to ask fo the interest that money would accrue in that time.?
thanks XXXXX
Submitted: 6 years ago.
Category: UK Law
Expert:  Thomas replied 6 years ago.

Hi Jo,


Thanks for your question.


How much is the annual rent on the property?


Kind regards,



Customer: replied 6 years ago.

Hi Tom- its £9,500 - not including business rates


Expert:  Thomas replied 6 years ago.

Hi Jo,


In the final analysis there is no governing legislation/case law determining what a landlord should or should not request for a deposit. A sum equal to one quarter's rent is the most common amount certainly, but 6 months (roughly approximate to what has been requested here) is not unheard of.


In the end, he is entitled to offer what he likes, just as you are free to reject it or negotiate it down. If you are that concerned go back to your solicitor and ask if he thinks they would consider one quarter's rent. It's about negotiation.


You solicitor should ensure that the deposit is dealt with by executing a rent deposit deed setting out the term of the deposit, how it is held, what is to be deducted from it and when it is released to you. It will certainly state that in the absence of any such deductions the interest will accrue for your benefit and shall be paid to your periodically or else upon return of the deposit.


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Kind regards,


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