This is a short video an update on how covid regulations are affecting property transactions and how it affects the buy to let landlord, where they are letting a property out. So, in relation to property transactions, we, of course, have the stamp duty relief period up to the 31st of March 2021, which means that up to £500,000 there’s a sliding scale, so that can save thousands of pounds in stamp duty.
We are quite busy in sales and purchases and new-build transactions. In relation to the buy to let landlord and how covid regulations have affected them, the situation is quite difficult. If possession is being sought of a property that’s let on a Assured Shorthold Tenancy, then the notice that can be given, which simply relates to returning possession of the property, is a Section 21 notice under the Housing Act 1988 and six months notice has to be given for all notices served after the 29th of August 2020.
So that is an extremely long period of time where there are rent arrears. So what does the buy to let landlord do in that situation? There are a number of choices and this is where good advice comes in. We have been looking at issuing claims for a judgment in respect of rent arrears, coupled with an application for possession. The alternative is that you can seek possession on the grounds of rent arrears, and there are certain categories of notices that you can use in certain time periods.
But generally speaking, the periods have been lengthened. So the buy to let landlord has to wait longer. And if they are looking to enforce possession at the moment, evictions are not happening until the middle of January at the earliest. So it’s quite key that the buy to let landlord has received good advice as to how to secure possession of the property in light of these very stringent regulations. If a case has already been brought to court and was stayed and has been reactivated after September 2020, then again, the landlord will need advice as to how to afford that case priority and get it before the courts as quickly as possible.
For all these issues, please contact us for advice. Thank you.