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JimLawyer
JimLawyer, Solicitor
Category: Property Law
Satisfied Customers: 6475
Experience:  Senior Associate Solicitor
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Assistant: How can I help? I am seek for some help in

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Hi
Assistant: Hello. How can I help?
Customer: I am seek for some help in commercial lease deposit
Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No, i have do nothing
Assistant: Where is the property located?
Customer: It is a shop in Soho Road birmingham
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: Yah, one month ago i have paid £5000 as deposit for 10 years shop lease as a unfixed restaurant, and i had changed my mind for some reason.

Hello, this is Jim and I am a dual-qualified lawyer (UK and Republic of Ireland) and happy to help you today.

What would you like to know please?

Customer: replied 4 days ago.
Hi Sir

Hi

Customer: replied 4 days ago.
I looking for help with lease deposit

Thanks, you have paid £5,000 according to the details in your question and you have changed your mind - do you have a copy of the terms available for the lease?. Why did you change your mind please?

Customer: replied 4 days ago.
I had changed my my mind coz i have got some problem in my back country that need money to solve it.
And as well there was another lease that the landlord set for the upstair part fir another person for five years, i have got no termd available.

OK, with this being a business to business contract then a refund is unlikely and I doubt the lease terms will allow for that either. If there was breach of contract on their part or misrepresentation then you could sue for the £5,000 back but generally if someone simply changes their mind (even a consumer purchase) then they can't expect the money back as it is a binding contract. I can look at the terms if you are able to upload them but until then the situation is likely to be the above and I am sorry to give you the news.

Customer: replied 4 days ago.
The landlord refused to pay me back my deposit

Has the landlord done anything wrong here? Just so I know the full story.

Customer: replied 4 days ago.
I did not sign any agreement with the landndlord .
I just paid deposit and verbally promise.

OK, in that case I would recommend that you send the landlord a formal letter before action to demand payment within 14 days and say that if they do not pay you, you will issue county court proceedings against them. See attached template as an example of what to say. Please let me know if you cannot see the letter which I have uploaded. You will need to tailor this letter to your situation.

You will need to register at http://www.moneyclaim.gov.uk so that you are ready to issue the claim in the event they dispute the claim and do not pay you. The website is very user-friendly and you would not need a lawyer to use the money claim site. Claims with a value of under £10,000 are classed as a "small claim", so legal costs are not recoverable and the matter may be dealt with on paper by a Judge, not at a hearing. A hearing may be necessary if the court thinks that oral evidence is required to dispose of the case.

You would claim the sum for the loss, the court issue fee (£185 based on a claim for £5000) and court interest which is 8% calculated on a daily rate from the date of loss to date of court judgment. The site allows you to calculate the interest and add it to the claim.

If you win then once you have the CCJ from the court the defendant has 14 days to pay in full. If they do not then it gets registered with the credit agencies after 30 days. You can also enforce the CCJ with the county court bailiffs or transfer the debt to the High Court for a small additional fee assuming the total amount owed is at least £600 and you can use the high court enforcement officers who have greater powers than county court bailiffs. The transfer fee is added on to the debt and payable by the defendant.

There are other enforcement methods which I can help with, including bank account freeze, charging order on their property (and then apply to force a sale), apply to summons them to court for questioning, attachment of earnings order against his employer (if employed) - all of which can ensure you are actually repaid the money.

You may find they just pay you after receiving the letter before action – hopefully they will want to avoid litigation.

I hope this helps - if you can please accept the answer and give me a 5 star rating (there should be a button at the top of your screen to do this), I can answer follow up Q&A's at no extra charge and Just Answer will credit me for helping you today.

Many thanks,

Jim


Customer: replied 4 days ago.
Thank you very much really helpful .
Did you think i have right to claim my money back, i mean is that verbal contract give the landlord the right mot to pay me

They may argue a verbal contract is binding but it would be your word against theirs - no harm in threatening to sue to get your money back though, just tell them there was no binding agreement and as such you want your money back or you will issue a small claim. That should work hopefully

Customer: replied 4 days ago.
For now thank you so much, may come back again to meet you, thank you again.

no problem, please let me know if any of what I have said requires clarification. I am happy to help. In the meantime if you could either leave a rating and click “submit”, or confirm that I have answered your question for you, I would be very grateful.

Many thanks,

Jim

Customer: replied 4 days ago.
Ok you desrve big thump up.
Just i have one last question, when i ask the landlord about my money just after five days from paying him the £5000, he said that he use my money to pay rent for his different shop( his barber shop).
Is it legal to use my money to pay rent for another shop?

If he owns the property you were renting then it's up to him to use the money but generally a deposit is used in case of any damage to the property you are renting from him. So I would say not.

The deposit is your money which the landlord keeps in case of any damage. At the end of the lease the deposit is repaid in full if there is no damage.

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