COVID-19 restrictions have started to ease, viewings are allowed and many of us are eager to head out in search of our dream new build home.
To help you on your way, we have provided a few points on the legal process of buying a new home and how normally familiar procedures may have changed, as a result of COVID-19.
- Viewings
As of 29 June 2020, Government guidance allows for physically distanced viewings. Initial viewings should be carried out virtually, but physical viewings can happen by appointment only and windows and doors must be kept open. If you are buying a new build property, government guidance advises you to contact the house builder in the usual way and to ask whether there are any specific protocols that they may have in place.
- Mortgages
If you have been furloughed, do not fret, the 80% you are receiving as salary, will be taken into account when it comes to a mortgage application. So there are still deals out there available for you.
- Valuation survey
This survey is carried out by the lender to ensure your new build is worth the price you are purchasing it for before they approve the mortgage. Many surveyors are now able to carry out onsite surveys now that government restrictions have been eased.
- Incentives
In post-COVID-19 market there may be a number of incentives available to you when purchasing your new build. But don’t forget these must all be disclosed to your mortgage lender.
- E-signing
On 4 May 2020, the Land Registry announced “Mercury signing” as a temporary approved method for the signing of deeds. The term is used to describe the process of capturing a signature page with a scanner or camera and emailing the image to your conveyancer. The signature must still be signed in pen and witnessed in person. But this form of signing helps parties to sign deeds remotely and allows a transaction to run more efficiently. The Land Registry are consulting on actual e-signing but this could be some way off!
- SDLT
Reduced rates of Stamp Duty Land Tax (SDLT) for residential property purchases will be available from 8 July 2020 until 31 March 2021 inclusive. The first SDLT threshold has been from £125,000 to £500,000 for all residential property transactions. Get reserving!
- Planning consent
According to government press releases, in September 2020, property owners will be able to build additional space above their properties via a fast track approval process, subject to neighbour consultation. We await detail but those who are seeking homes with room to extend; this may be your chance to build that new work from home space after buying your dream new home!
Blog provided by Charles Russell Speechlys LLP
