What was the actual agreement regarding the deposit?
Do you have anything in writing confirming that it was no -refundable?
What correspondence was there regarding the deposit sent by the solicitor?
Did the tenant appoint a solicitor?
Did you complete the lease?
What do labour charges and staff costs actually relate to?
Do you have further details of what the £3k package actually is?
Please can you give me further information and I will be able to assist you.
What exactly have you spent out and on what? It is still not clear.
You mention 1000 on fees, presumably abortive costs, then 1200 labour (does this relate to the hired help?) and 1000 staff costs(does this relate to the hired help?).
There is also the 2000 paid to the outgoing tenant, why was this paid? Was it paid as a direct result of the potential new tenancy?
Your expenses are 5200 in total.
You cannot claim the full year's loss of rent. You are under a duty to mitigate loss. Potentially you can claim for a good period if you have take all reasonable steps to mitigate loss by finding a new tenant asnd resetting the property ASAP.
What constitutes a fair reason for the tenant to withdraw? This is what a court would consider if the tenant brings an action to recover the deposit.
It is always difficult to predict which way a case would go as each turns on its facts and circumstances. However based on what you have said your claim is limited to actual expenses incurred. I don't think you can claim loss of rent and your duty to mitigate loss would strictly limit it in any event. However if challenged the court would assess this mater on whether the tenant had a fair reason to withdraw and if it did then you would have to return the funds potentially with interest and pay costs.
Do you have any further questions or queries ?