Coronavirus: the impact on the property market
During this time, there are many questions arising regarding the impact the Coronavirus crisis is having on the property market. Below we address some of those questions, and explain the effect this crisis has had on different areas of the housing market.
Will I still be able to complete on my property transaction?
The government’s current advice regarding moving home is “where possible, delay moving to a new house while measures are in place to fight coronavirus”. This doesn’t mean that completions cannot take place, as each transaction will be viewed on a case by case basis. For example, many variables can influence the importance of a completion still occurring, such as contractual obligations, divorce, money concerns, location constraints etc. Solicitors are still currently able to process property transactions but we are advising all clients that even where such a completion does take place the government restrictions must still be complied with.
If I have a transaction in progress should I continue to progress the legal process?
Yes, at the very least it is sensible to be ready and prepared to proceed as soon as circumstances allow etc. Use the time to deal with enquiries and access searches (which can be delayed at the moment).
I have just put my property on the market, should I ‘pull it’?
If you have just put your property on the market, then you may unfortunately be stuck in limbo for a while until the lockdown measures have eased given restrictions preventing surveys and viewings in person. This doesn’t mean that you should pull your property though, because people will understand why it will have lingered on the market during this time. Keeping up your property listing is advisable, as people will still be looking, and waiting, until the property market is back in action. Many estate agents have been adapting to the current climate, by creating virtual tours of properties.
Can my property still sell during the pandemic?
Yes – your property could receive an offer during the pandemic, but offers from cash buyers are easier at the moment. This is due to the fact that some mortgage valuations aren’t currently able to take place, so mortgage lenders may not be able to ensure your property is worth the money being offered, and as such might not be able to offer your buyer a mortgage. However, several lenders are able to offer automated valuations, which use set criteria to determine the value of a property. These previously were used alongside traditional valuations, but now several mortgage lenders have adapted for the current climate to solely use automated valuations. However, there are some limitations to which properties they would accept an automated valuation on.
My mortgage deal is coming to an end, will I be able to remortgage still?
Yes, in fact this is the perfect time to remortgage as interest rates are currently at a record low. This means that you can get a very good deal at the moment. However, you may be limited to only certain lenders at this time, for the reasons explained above. Also, most deals will only be offered for particular Loan to Values (LTV), due to some mortgage lenders currently setting a limit. You may find that certain tracking mortgages are currently unavailable. Our remortgage team will be able to answer any questions that you may have, and can assist you with your remortgage but we also advise you to take advice from the start from a mortgage adviser as they will be able to guide you through the financial issues and help you select the right product for you.
Please contact us at firstname.lastname@example.org and we will be happy to discuss how we can help you during this difficult time.
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