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Security Deposit Disposition Letter Template for England and Wales

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Key Requirements PROMPT example:

Security Deposit Disposition Letter

"I need a Security Deposit Disposition Letter for a property in Cardiff where the tenant is moving out on March 15, 2025, with deductions for minor repairs and cleaning, from an original deposit of £1,500."

Document background
The Security Deposit Disposition Letter is a critical document used at the conclusion of a residential tenancy in England and Wales. It is designed to provide a clear and transparent breakdown of how a tenant's security deposit has been handled, including any deductions for damages, unpaid rent, or other permitted charges. The letter must comply with strict regulatory requirements under various housing acts and deposit protection schemes. This document helps prevent misunderstandings and provides a formal record that can be used in case of disputes. It should be issued promptly after the end of the tenancy and include all relevant calculations and justifications for any deductions made.
Suggested Sections

1. Sender and Recipient Details: Full names and addresses of both landlord/agent and tenant(s)

2. Property Reference: Address of the rental property and relevant tenancy period dates

3. Deposit Information: Original deposit amount, protection scheme details, and deposit protection certificate reference

4. Deduction Details: Itemized breakdown of any deductions with specific amounts and justifications

5. Final Settlement Amount: Net amount to be returned after any deductions and calculation explanation

6. Payment Instructions: Bank details or payment method specifications for deposit return

Optional Sections

1. Dispute Resolution Notice: Information about available dispute procedures and timelines, included when deductions are made or likely to be contested

2. Evidence Reference: List of supporting documentation for deductions, included when deductions are being made

3. Multiple Tenant Distribution: Breakdown of deposit return amounts per tenant, included for shared tenancies with multiple tenants

Suggested Schedules

1. Schedule A - Deduction Evidence: Photographs, invoices, quotations or other evidence supporting any deductions made

2. Schedule B - Final Inspection Report: Copy of the final property inspection report detailing condition at end of tenancy

3. Schedule C - Original Inventory: Reference copy of check-in inventory and schedule of condition

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Relevant Industries
Relevant Teams
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Industries

Housing Act 2004: Primary legislation governing tenancy deposit protection schemes and requirements for protecting and returning deposits. Sets out the fundamental framework for deposit protection in England and Wales.

Tenant Fees Act 2019: Regulates permitted fees and charges, including deposit caps of 5 weeks' rent (for annual rent under £50,000) or 6 weeks' rent (for annual rent of £50,000 or more).

Housing (Tenancy Deposits) (Prescribed Information) Order 2007: Specifies the exact information that must be provided to tenants regarding their deposit, including details about the protection scheme and deposit handling procedures.

Landlord and Tenant Act 1985: Sets out fundamental obligations between landlords and tenants, including property maintenance requirements that may affect deposit deductions.

Deregulation Act 2015: Updates to deposit protection requirements and establishes time limits for protecting deposits, affecting how deposits must be handled and returned.

Consumer Rights Act 2015: Ensures transparency and fairness in consumer contracts, including protection against unfair terms in deposit agreements and deduction processes.

Limitation Act 1980: Establishes time limits for making claims related to deposits, affecting the period within which deposit-related disputes can be raised.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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