Coronavirus News: The Housing Market

The UK has now been in lockdown for a few weeks and within this time we have witnessed ever growing uncertainty in all areas of life, including the housing market.

Peoples movements have been restricted which present numerous factors which may affect your ability to complete on a sale or purchase within the original time frame you expected. We, at Lawson West, appreciate that this is a very unsettling time on top of the stress of moving home but we are still working on any and all transactions to help you progress within the Government guidelines.

What is the Impact of COVID-19 on Sale and Purchase Transactions?

The Government guidance changes every day. Please find below the latest guidance from the Government and also the Law Society:

New properties on the market:

• • Social Distancing rules mean that there can be no physical viewings to your property on the market. 

  • Estate agents could provide a digital video online of the interior and exterior for online assessments if this has already been created prior to the lock-down.

  • The new rules stop access to the property for an estate agency to take on a new properties, say, for example, to measure the rooms and create a set of property details.

  • The new rules stop access to the property for surveyors to provide a valuation report to lenders/mortgage providers.

  • The new rules limit access to the property for surveyors to provide a home-buyers report to the purchaser. or an EPC certificate.

Properties under offer:

• • There is no need to pull-out of transactions already underway but specific measures do need to be followed to help fight Coronavirus and stay within the government restrictions on movement.

  • If the property being moved in to is vacant then there is no issue with exchange and completion taking place – provided that the guidance on social distancing is followed when moving.

  • Where the property is currently occupied we are advising our clients that alternative dates for completion can be agreed once the lockdown has been lifted. This will be agreed with both parties to the transaction.

  • If you have already exchanged contracts and the property is currently occupied we are urging all parties to work together to agree a delay to the completion date. This will result in a further Exchange of Contracts to vary the terms that have been agreed. This will not be done without consulting you first.

  • In line with the Government’s advice, anyone experiencing symptoms of Coronavirus or who are currently self-isolating should not be moving house if possible.

What Happens If You Can’t Complete?

Once you have exchanged contracts both parties are legally-bound to complete on the designated date. However, with the emergence of Coronavirus this is no longer a straight forward procedure as multiple factors may mean that completion is no longer able to take place on the given date.

If you fail to complete you may be held liable for breach of contract and there could be financial penalties to pay. If you are worried about this possibility please contact us directly and we can talk this through with you.

The best way to avoid this situation if you have already exchanged is for both parties to agree to vary the terms of the contract, agreeing to delay completion until such time that the lockdown has been lifted and social distancing is no longer needed. This will require additional clauses to be put in to the contract after exchange but this will be discussed directly with you if this is the case.

How To Avoid The Risk Of A Failed Transaction

Our dedicated conveyancing team is advising that, if you have not already exchanged, and are still happy to proceed with your property transaction, it might be best to agree to a simultaneous exchange and completion process, with both aspects taking place on the same day.

How does it work?  You only become legally bound to buy or sell the property on the same day you will be completing. This will also lower the risk of financial implications making sure that any potential mortgages and funds are in place in time for completion. This also alleviates the risk of breach of contract and any potential damages that may be paid.

Our Advise To You

• Please speak directly to us with any concerns you have on your transaction and we will be able to go through the potential scenarios with you.

• Make sure that, if you are still happy to complete, that you are physically able to move. Including removals and cleaning companies being ready and in place. For example, you might not want to be at the property until the removals have completed.

• Check that your mortgage offer is still in date for completion, especially if it is likely that the date may be delayed. If it isn't, you should try to request a 3-month extension from your lender or you will need to re-apply for another mortgage offer from a lender/mortgage provider if that fails.

• Consider how the keys will be exchanged at the property and the best way for this to take place with social distancing.

• Make sure that any insurance companies are able to cover the new property.
  
  

The advice is changing every day but our conveyancers regularly monitor the latest updates from the Government and will be the best people to advise you if you have any questions.

Please do not hesitate to get in contact. We're here to help. 

Shannon Biddiss, Conveyancing Team  sbiddiss@lawson-west.co.uk 

Useful Links: 

Government's Coronavirus Rules

 

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