lease deposit deed clause

[han7681]

hi
I am reading a lease deposit deed .

I am not sure what exactly means and this clause is needed on the deed.

At intervals of not less than 12 months the Tenant may by notice require the Landlord to instruct the Landlord's Agents to draw on the Deposit Account and pay to the Tenant an amount equal to the interest that has been credited to the Deposit Account at the date of the notice less the deductions referred to in clause 4.1. No such payment will be made if there is at that date any default by the Tenant or to the extent that the payment would cause the balance in the Deposit Account to be less than the Deposit.

any advices welcome

thanks

 

[LPB 123]

The landlord will pay you any interest that is earned in the account where your deposit is held minus deductions in clause 4.1, if you ask them to. You have to wait a minimum of 12 months before you request again.

 

[han7681]

thanks for replying , is there any disadvantage if asked to pay interest on each year? and how to know how much the interest is earned ?

 

[LPB 123]

thanks for replying , is there any disadvantage if asked to pay interest on each year? and how to know how much the interest is earned ?

Assuming you can deploy the interest received in to more than the interest that is being paid then makes sense to withdraw each year.

If the landlords account is receiving a better interest rate than you can get or you have no use for the extra money then keep it there for longer and let it compound.

Ask the landlord / landlords agent or ask to see the latest statement etc every 12 months.