Commercial Leases · glossary
Money the tenant pays the landlord as security: here £15,000, three months' rent, for the first three years. It stays Linnet's money, in a separate account marked as Linnet's deposit. Linnet charges it to Fellgate as security, and that charge must be registered at Companies House within 21 days. Lease, Schedule 4, paragraph 1 · Chapter 3 · see Interest rate
Explained in Chapter 3, Rent, Rent-Free and VAT, of Commercial Leases.
A landlord asks for a rent deposit when it is unsure of the tenant's finances. Linnet has traded for only four years and, as a small company, publishes only short accounts that say little about its finances. So Fellgate holds three months' rent, £15,000, for the first three years.Read Chapter 3, Rent, Rent-Free and VAT →
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