During the COVID-19 pandemic, there have been fears that the nationwide lockdown will lead to a recession. However, it seems that some banks/mortgage firms are continuing to lend to landlords who are seeking funding to purchase buy-to-let properties. These lenders include Santander and Precise Mortgages. This means that landlords are able to pursue investment opportunities during this pandemic.
Nevertheless, most available lenders have decided to tighten their restrictions and requirements needed to obtain a loan. This will likely mean that the buyer is under a higher burden to place more pressure on the seller to provide all the required documentation. Subsequently, the process may take more time than usual. Furthermore, there may be further government developments that could postpone the transaction. Consequently, a landlord should look to securing funding as soon as possible.
Consideration for the landlord
It is understandable that some landlords may want to continue purchasing buy-to-let properties as a post COVID-19 investment. However, a landlord should consider the following before commencing the property transaction:
- Is the property likely to be occupied in the next three months?
- Will the landlord be willing to request that the property be deep cleaned?
- Will the landlord be able to provide future tenants with a legal assurance of the above?
- What is the predicted forecast for the rental market in the next six months?
Please feel free to contact our Property Department with any questions or concerns you have as a residential landlord.