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TNT
13-02-2010, 14:28 PM
is it legal to agree a 4 months deposit?

what are the implications?

Ericthelobster
13-02-2010, 14:46 PM
is it legal to agree a 4 months deposit?Yes, but read this (http://www.landlordzone.co.uk/deposits.htm):


The amount of the deposit should be a maximum of two months' rent. If the deposit is more than this amount it could in theory count as a premium and may give the tenant an automatic right to assign the lease without the landlord's consent.

This eventuality of assignment should be precluded by the terms of the tenancy agreement anyway, but as a precaution the deposit should be kept below two months' rent.

westminster
13-02-2010, 14:50 PM
According to Jeffrey, the premium thing only applies to contractual periodic tenancies.

See this post (http://www.landlordzone.co.uk/forums/showpost.php?p=179426&postcount=17)

TNT
13-02-2010, 15:03 PM
thank you, clear answer

would I have any issue to use DPS with a 4 month deposit?

Ericthelobster
13-02-2010, 17:15 PM
According to Jeffrey, the premium thing only applies to contractual periodic tenancies.

See this post (http://www.landlordzone.co.uk/forums/showpost.php?p=179426&postcount=17)...which implies that the advice I flagged up elsewhere on this site is wrong or at best misleading, then. Can it be altered?

(Jeffrey!?)

westminster
13-02-2010, 19:01 PM
...which implies that the advice I flagged up elsewhere on this site is wrong or at best misleading, then. Can it be altered?

(Jeffrey!?)

I've noticed that this idea about taking more than the equivalent of two months rent as deposit being illegal seems to be one of those continuing myths that never quite go away.

See this thread (which is where that Jeffrey post came from)
http://www.landlordzone.co.uk/forums/showthread.php?t=24825

And this one
http://www.landlordzone.co.uk/forums/showthread.php?t=25865

westminster
13-02-2010, 19:04 PM
thank you, clear answer

would I have any issue to use DPS with a 4 month deposit?

I'm not aware of any limit to the deposit sum lodged with the DPS. Read their T&C in this link.

https://www.depositprotection.com/WebContent.ashx?docid=52835bb1-9105-4cb1-9409-c5a53d3540e4

jeffrey
14-02-2010, 21:50 PM
What I posted previously is still true. I can't help old myths re-circulating!

Ericthelobster
14-02-2010, 23:04 PM
What I posted previously is still true. I can't help old myths re-circulating!But as Topic Expert don't you have some clout to get incorrect legal info on this site altered (ie in http://www.landlordzone.co.uk/deposits.htm ?)

jeffrey
15-02-2010, 10:01 AM
Well, I am notifying Editor. It's up to him whether that information is to be altered!