A "holding deposit" is a permitted payment up to a maximum of 1 week's rent. However, a particular procedure must be followed when handling holding deposits.
Suppose a person wants to hold onto and retain a holding deposit. In that case, the person who received the money must inform the payer within seven days, giving reasons why the holding deposit isn't going to be repaid (the seven days is calculated differently depending on the circumstances).
This template is a letter in Word format which has been created to inform the payer that the landlord or agent (or whoever received the holding deposit) is not repaying the holding deposit as a result of the tenant notifying the landlord that they no longer wish to proceed with the tenancy.
