Consideration on Holding Deposits and Agreements to Lease – England and Wales

The taking of holding deposits can be a mixed blessing; fussy rules, easy to make mistakes and possible financial penalties is the trade-off for gaining some financial commitment. Agreements to Lease largely commit the landlord and tenant to starting a tenancy; this may be exactly what the informed parties want. But with restrictions on further letting activity, are we sure this the will of the landlord? Does the landlord have sufficient knowledge of the prospective tenant to make that decision? This article highlights considerations that really should be made with the landlord before marketing.