Rent deposit deeds

06 Sep 2012

Currently, if a rent deposit deed creates a charge over the monies held by a landlord as security for the performance and observance of a tenant’s obligations pursuant to a lease, then this charge must be registered at Companies House. Failure to do so within 21 days of the date of the deed will mean that the charge is void against a liquidator or administrator of the tenant.

The Department for Business Innovation and Skills has published two draft statutory instruments (The Companies Act 2006 (Amendment of Part 25) Regulations 2012 and The Limited Liability Partnership (Application of Companies Act 2006) (Amendment) Regulations 2012).

If these Regulations come into force on the estimated date of 6 April 2013, then the registration of charges at Companies House will not apply to "cash taken or held by a landlord as security for the due performance and observance of a tenant’s obligations under a lease of land".

The Regulations will also introduce electronic filing at Companies House and it will remove criminal sanctions for failing to register a charge (although the security may still be void against a liquidator or administrator).