New Government guidance has been issued on the practicalities of moving home during the current COVID-19 lockdown in the UK.

The guidance states that house moves are permitted, but there are some practical considerations that need to be taken into account.

We outline the key questions that you need to be asking, when buying and selling properties.

1. Is the property vacant?

If yes, the transaction can proceed, subject to the points below. If no, then a delay in completion until lockdown is lifted is encouraged.
In practice, we usually recommend exchanging contracts now with provision for completion to be delayed until after lockdown, and please see below for more information.

2. Can the property be viewed?

The government guidance advises against physical viewings, valuation inspections, attendance to take photographs and/or to produce an EPC. It may, however, be possible to arrange virtual viewings.

3. Is the proposed completion date fixed?

The guidance advises that exchange in relation to occupied properties should proceed only if the contract contains a right to delay completion if necessary due to COVID-19. Please see the Insight that we published about this last week, here.

If contracts for the sale of an occupied property have already been exchanged, with a fixed completion date, then the parties can vary the contract to insert a right to delay completion, and this is something that we are working on with some of our clients.

4. Would an extension to the completion date mean that a mortgage offer has expired?

The Government is working closely with funders to agree that, where buyers have already exchanged contracts, completion can be delayed by up to 3 months. 

5. What if a revised date can’t be agreed?

If a new completion date can’t be agreed, then critical home moves are permitted, and are exempt from the police enforcement powers.
In summary, it may be tricky to market properties at this stage because of the limitations on property viewings. If this information is already to hand, and/or a sale is already progressing however, then the sale can continue – at least until exchange.
It is advisable to consider delays to completion where properties are occupied. Sales of unoccupied properties can proceed, although buyers can’t attend the property which may cause practical problems and delays.

We therefore recommend that you review any proposed sales, asking yourselves the above questions, to establish whether it is sensible to proceed.

How can Capsticks help?

Capsticks’ Housing team provides a truly full-service, with particular expertise in Development, Corporate and Securitisation, Housing Leasehold and Asset Management. We advise Housing Associations and Local Authorities on a range of matters including estate regeneration schemes, housing management and tenant engagement, commercial and financial issues, including disputes and governance advice.
If you have any queries around what's discussed in this article, and the impact on your organisation, please speak to Susie Rogers to find out more about how Capsticks can help.