Unprotected deposit court proceedings?

Hi all, apologies if this is not the way to do things. I’ve signed up specifically to this forum to see if anybody would be kind enough to offer some advice if possible?

I’m messaging as I feel I’m essentially being extorted by a tenant whom I believed to have had a brilliant relationship with only to be threatened with court action.

Long story short – I’ve had the tenant for 13 years in the property and never had a single issue in that time but decided to sell up this year. We gave the tenant significantly more notice that we planned to end the agreement due to the relationship and wanting to ensure she had plenty of time to sort herself out (and have even supported one of her family members with time and effort in getting a property separately following some personal trouble).

The problem as you can gather is that I hadn’t protected the deposit – I totally accept the mistake and take full ownership/accountability for this – it was purely a little bit of naivety and belief that given the long standing relationship that it wasn’t a huge deal (live and learn!), and despite there being significant damage to the property, far exceeding the amount held, I have offered her the full deposit back as I accept that I technically broke the law. There was never anytime where the deposit was withheld.

The tenant however has gone through a solicitor and has asked for x3 times the amount of her deposit and legal fees on top, citing ‘material loss’.

We are essentially questioning whether to go to court and push back on the basis that she’s taken advantage of this situation and hasn’t suffered any material loss to justify the requested amount – it’s a huge shock and represents moral bankruptcy in our eyes, but here we are!

There’s never been a crossed word or anything untoward in the days before the exchange… all very friendly, nor have any issues ever been raised on the condition of the property but as the handover day approached, she went radio silent for days and didn’t hand the keys back until days after the exchange was agreed.

Finally after multiple messages politely asking for the keys, she came back to say she was going through solicitors for money.

In anybody’s experience, under the circumstances do you foresee a judge demanding the full x3 amount paid, in which case it isn’t worth pushing and are better off just paying the amount?

It’s principally disgusting to us to pay all this money when we’ll essentially be paying somebody we’ve done a lot for to leave the place in a state. We’ve gone back to the solicitor to try and mediate and avoid court but it’s been met with increased fees and no interest in doing anything other than exploiting. It would be great to learn how judges deal with the circumstances in these cases and how it does or doesn’t play a part in the outcome?

Apologies for the mouthful but exceptionally grateful for any advice!

Best regards,

Will

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