RESIDENTIAL REAL ESTATE FOR PRIVATE CLIENTS

From 1 July 2021, the focus of Right to Rent checks is on the immigration status of an applicant. For EEA and Swiss citizens resident in England before the end of 2020, this status will generally be Settled (where the person has lived in the UK for a continuous 5 year period) or Pre-Settled (where the person has not lived in the UK for 5 years in a row).
 
 Letting agents can either make digital checks or hard copy checks. Most EEA citizens will have a digital share code that they can provide to agents to evidence their status. However it is not compulsory to use this and tenants may choose to offer hard copy documents for an in-person check (or video check under COVID adjusted arrangements which will be valid until 31 August 2021).
 
 There is no requirement to carry out retrospective checks on EEA citizens who entered into a tenancy before 30 June 2021. A new check only needs to take place within 28 days before the start of any new tenancy.
 
 
 

Today marks the last day of stage 1 of the stamp duty land tax (SDLT) holiday whereby no SDLT is paid on the first £500,000 of the purchase price for residential property.

Stage 2 kicks in on 1 July when only the first £250,000 of the purchase price is tax free.

From 1 October 2021 the amount of the purchase price on which no SDLT is payable returns to the pre-pandemic level of £125,000.

How the mortgage market is shaping up

In this short overview Adrian Anderson of Anderson Harris explains how the mortgage market is faring as lockdown restrictions ease.
Current mortgage rates highlight a case of the haves and the have-nots.  

Re-emergence of 90+% mortgages

90% mortgages disappeared during the pandemic when lenders were concerned about a collapse in property values.  Fortunately this crash didn’t happen, so mainstream lenders have re-introduced 90% and even 95% mortgages.  The interest rates on these are still expensive compared to pre-March 2020.  Reassuringly though the rates of 90% mortgages are just starting to creep back to below 3%.

The bigger the deposit the better

For borrowers who are looking to borrow circa 60% via a mortgage with mainstream lenders for a main residence, the rates are about as cheap as we have ever seen them.  2-year fixed rates have just crept below 1% and 5-year fixed rates are only just above 1%.  If you have the cash for a sizeable deposit, it’s certainly a good time to take advantage of the cheap interest rate environment.  

The growing appetite for independent advice

More borrowers are now seeking independent advice.  This is because everyone has different personal circumstances and lenders have different criteria.  As a result of the pandemic, banks are scrutinizing more to ensure applicants fit their current lending criteria.  In some scenarios the criteria are stricter.  The banks do, however, have strong balance sheets and an appetite to lend.  Anderson Harris are experienced specialists in this area and are helping borrowers to find the best deal for them.  

Adrian Anderson
Anderson Harris 
https://www.andersonharris.co.uk