Whether you are selling, buying or moving, here's a guide to the latest property procedure during lockdown in the UK.
For years the housing market has caused uncertainty and many believed that things would finally settle down at the beginning of this year. 73,500 mortgage approvals for property purchases were conducted in February 2020 alone, the highest amount in years, boosting confidence in our British economy. Then March ensued.
The independent has reported the following from Andrew Montlake, managing director of mortgage broker Coreco, "The figures feel like they came from another time. Within just a few weeks the property and mortgage markets have gone from strength to abject uncertainty."
"We're confident things will eventually get back on track, but the great unknown in the current highly fluid environment is: when?
"The hope is that the mortgage market rebounds as fast as it is deteriorating once we come out the other side of Covid-19.
"For now the most important thing is every lender supports borrowers as best it can in these most challenging times."
Sales and lettings ground to a halt when the UK went on lockdown. The procedure of buying and selling is moving slowly and whilst home owners can accept offers, the process can now take much longer than normal.
According to government guidelines presently, estate agents should not enter properties to conduct appraisals and viewings. The advice is for landlords or sellers to prepare their properties for marketing when the lockdown restrictions are eased in due course. Decorating, cleaning and repairing of properties is on the high.
The independent reports the government's latest guidelines as stating "Given the situation in the UK with regard to the outbreak of coronavirus, we urge parties involved in home moving to adapt and be flexible to alter their usual processes. There is no need to pull out of transactions, but we all need to ensure we are following guidance to stay at home and away from others at all times, including the specific measures for those who are presenting symptoms, self-isolating or shielding. The health of individuals and the public must be the priority."
New Tenants or buyers of properties that are vacant can go ahead. However, where a property is occupied, the parties should "amicably agree alternative dates to move," for when the lockdown measures are lifted.
Most transactions are still moving forward from exchange to completion, other than where people have suffered redundancies or hardships as a consequence of the lockdown. The virus doesn't appear to have altered the reasons for people moving, if anything the lockdown has highlighted those reasons, making a move even more essential.
Many mortgage offers have now been extended to make allowance for the delays in property transactions. Interest rates have increased, loan to value ratios have been lowered and the imposing of longer turnaround times have all be introduced to slow activity.
On 30 March 2020, Nationwide, the UK's second largest mortgage lender, was the latest to declare that all fixed rate and tracker mortgages above 75 per cent loan to value have been removed until further notice. Existing applications are unaffected.
Conveyancers are advising their current clients that there will inevitably be delays and that contracts should not be exchanged on occupied property unless explicit provisions has been made for the risks presented by coronavirus.
Removal firms has been urged to delay house moves by the government but inevitably some will still go ahead where a completion date can't be changed and provided it is safe for the all parties concerned.
On 26th March the latest government guidance state that tradespeople can carry out work in people's properties so long as they are well, with no symptoms or confirmed cases of Covid-19. Whilst the work is carried out everyone present must stay two metres away from each other and wash their hands or use hand sanitiser on a regular basis.
For more information, visit the government's website.
For more helpful guides and useful information, please visit our website www.quicklyconvey.co.uk
If you are looking for a Solicitor to handle any of your property matters, please contact us on 020 3963 7310 or email us on info@quicklyconvey.co.uk
Please note that these guides are for informational purposes only, and do not constitute legal advice.
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