The Help Available For Businesses During COVID-19

The Help Available For Businesses During COVID-19

Many businesses in the UK are experiencing financial hardship and uncertainty in the face of the COVID-19 epidemic. Through national lockdowns, company operating restrictions, and changes in demand, this is undeniably one of the most challenging times that business owners have endured for many years, if not decades.

In light of the exceptional circumstances, the government has introduced a scheme to encourage lenders to lend, backed by a government-guarantee. A coronavirus business loan is now available through BLG, further bolstering the business support you need.

The scheme is open to smaller British businesses (SMEs) that have an annual turnover of up to £45m. The coronavirus business loan is available for firms that are losing revenue and experiencing a disruption to their cash flow as a result of the epidemic. Your business can self-certify that it is being affected by the COVID-19 epidemic.

Your business must not have been certified as a ‘business in difficulty’ on or before 31st December 2019 to be eligible for a coronavirus business loan under this particular scheme.

Here we take a look at what the government scheme offers SMEs and property developers.

 

Coronavirus Business Interruption Loan Scheme

Up to £5m is funded by the Coronavirus Business Interruption Loan Scheme (CBILS) over a term of up to two years. The scheme covers lending fees and the first year’s interest, so your business will pay no fees or interest during the first twelve months of the coronavirus business loan.

It is important for businesses to understand that they are fully liable for the debt. Personal Guarantees are still required, but these have a 20% cap on the outstanding balance of the CBILS facility once proceeds from the sale are applied. Furthermore, a Principal Private Residence (PPR) cannot be used as a security to support the personal guarantee.

You must have a viable borrowing property development finance proposal for BLG to consider your application for a coronavirus business loan, and you will need to meet other standard lending criteria.

The CBILS programme has been extended by the government a number of times. The current key deadline dates are:

  • Loan application to be received by the lender – By end March 2021
  • Loan offer accepted by the borrower  – By end May 2021
  • First draw for development loan – By end August 2021

 

How BLG Can Help

BLG is a development finance specialist serving SME property developers. Accredited by the British Business Bank, BLG is an approved lender under the Coronavirus Business Interruption Loan Scheme.

You can register your interest for a coronavirus business loan and development finance, which BLG provides through CBILS, with flexible loan structures that support your individual needs and requirements. We are accepting applications from both new and existing customers.

BLG is proud to support UK businesses during the economic uncertainty that the coronavirus has caused. We can help your business navigate through the challenges ahead with a property-secured loan that is part of a government-backed scheme.

The Impact Of Brexit On The Housing Market

The Impact Of Brexit On The Housing Market

While it looked like a deal may not happen, the UK finally left the EU after a last-minute Christmas Eve trade deal. Now we are on the other side; it is time to consider what will happen to the housing market.

During the transition period, the predicted crash in property prices never really materialised, although there has been a readjustment to counter confidence in the South East and London. The housing market’s performance so far has been good news for homeowners worried about venturing into negative equity. For now, demand continues to exceed supply, and while this continues, house prices will rise.

 

The Impact On Development Finance

The property market has always been seen as a safe haven and leading form of property development finance, particularly in times of economic uncertainty, such as that created by the referendum or a snap General Election. The UK housing market consistently offers stability and security for medium and long-term investments. It is recognised as more reliable than investing in bonds, shares, and stocks, which is all good news for property investors and developers.

Brexit may have created a weakness in the Pound, but this encourages foreign investment in residential and commercial property. As such, house prices have continued to rise steadily since pre-referendum times. Statistics from the UK House Price Index show that as of November 2020, house prices have risen by 7.6% compared to the previous year.

It is fair to say that the COVID-19 epidemic has so far impacted the housing market more significantly than Brexit. The first national lockdown saw housing transactions drop to 40,000 in April 2020. As restrictions were eased, transactions rose to 100,000 in October 2020.

Since the summer of 2020, various factors have fuelled activity in the housing market. Low mortgage rates and bridging loan rates have facilitated activity from private owners, property investors, and developers.

 

Looking To The Future

Looking into the future, there is nothing to suggest that the Brexit housing market will see the growth in property prices stall. Another national lockdown continues to drive sales as people search for better lockdown experiences. The current stamp duty holiday, introduced to support buyers during the epidemic, has reduced the tax buyers must pay and will continue to have a positive effect until the holiday ends on March 31st, 2021. The housing market will likely see fewer transactions in April and May 2021, when normal stamp duty levies return.

During 2020, one in five households in the UK were part of the private rented sector. This number is expected to rise to one in four by the end of 2021. This reflects the desire of more middle-aged and retirees opting for lifestyle flexibility, which is good news for landlords and developers converting properties into HMOs (House in Multiple Occupation).

All indications so far are that the UK’s housing market is safe, property prices will rise, and the number of renters will increase.

Tips For A Great Virtual house Tour

Tips For A Great Virtual house Tour

As we go through the third national lockdown and COVID-19 cases remain high, there is a surge in demand for virtual house tours. Buyers, sellers, renters and estate agents are looking to limit personal contact while at the same time offering a viewing experience that is as close to the real thing as possible. If your property is a build to let property in particular you don’t want the hard work that went into the property to go unnoticed and a video tour allows you to really highlight the property and the work completed. 

You can think of a virtual house tour as Google StreetView inside your home.

As shopping online becomes the norm for most of the population, it makes sense to get your home online with more than just a few photos. The cost of technology has dropped significantly, so you can get close to professional quality with a virtual house tour created using a camera or smartphone and an app or software.

 

Why Virtual House Tours Are Important

Selling a house requires you to immerse your potential home buyer so that they can experience the flow and layout of your home. The data backs this up and indicates that a virtual house tour will increase the likelihood of sealing the deal. Virtual house tours during COVID-19 will help your house sell faster, and with as few as one in ten using this method, there is a huge opportunity to make your home stand out from the crowd.

You will save time showing people around your home, hundreds of people can see your house online at once, and you can tap into the out-of-town buyers market. However, this solution should still be seen as an addition to professional photographs. As restrictions dictate, you can create the footage yourself or ask your local realtor to produce an estate agent’s virtual tour for you.

 

A Step By Step Guide

Just like showing your home in person, you should prepare your home before anyone sees it. It helps to give your home a thorough clean, remove personal clutter, touch up paint, and tidy up your garden by removing weeds and mowing the grass.

You will need to select your equipment, which could be your smartphone and an app, which will cost very little, or a 360-degree camera, which is far more affordable than it used to be. The resolution of low-cost cameras is excellent, so you don’t need to spend a fortune if you don’t want to.

Unlike a walkthrough video, you will be capturing a 360-degree view of every space so that the home buyer can pan, freeze, and zoom in as they choose. You should set aside around 20 minutes if you are using a camera or 30 minutes to an hour if you are using a smartphone.

Before you start your virtual house tour, create an image list, and tick them off as you complete them to ensure you don’t overlook a room.

With a 360-degree camera, you will need a tripod set at chest height. To make a great virtual house tour, you need to ensure the camera is level; otherwise, the image will not line up as the viewer pans around.

Take your first shot from across the road, moving next to the front garden and back garden. Then, move inside your home, turn on lights, open all doors, and open curtains and blinds. Place the tripod in the centre of hallways or at the entrance to each room. You can move the tripod to different positions in larger rooms, and you should consider moving the tripod to one corner to show the room’s size.

Depending on the software or app that you have chosen, you may edit the results and upload them to a hosting platform. If you are using an estate agent, they may recommend what software to use, and you will need to provide a link to your content or embedding code, which they will use on their website.

A virtual house tour will help you sell your house fast, and there is no better time than now to grasp this option with both hands.

If you’d like to learn more about the housing market and the finance options available please contact us today.

What Is Shared Ownership?

What Is Shared Ownership?

House prices keep rising, making it harder for people to get on the property ladder, especially if you are a first-time buyer. Shared ownership makes owning a home more affordable and is an option open to first-time buyers and people who used to own a home.

Shared ownership is a government scheme offered by Help to Buy. Homebuyers can take out shared ownership mortgages to buy part of the property. Homebuyers then pay rent at a reduced rate on the share they do not own.

If you take advantage of this scheme, you can increase the share you own (staircase up) to gradually own more of the property and even work your way up to complete homeownership. As you buy a greater share in the property, the portion you pay rent on decreases.

 

How Does Shared Ownership Work?

Shared ownership properties give you a mix of buying and renting with the initial choice of buying between 25% and 75% of your home. Shared ownership houses include new build homes and homes offered through resale programmes run by housing associations.

You will need to take out a mortgage or pay for your share of the property using your savings. All properties are sold on a leasehold only basis. You should be aware that as your home’s value increases, so does the price to buy the remaining share. You will also need to pay for a new valuation each time you buy further shares.

 

Am I Eligible?

You can join the shared ownership scheme if you are a first-time buyer, if you used to own a home but cannot afford to buy one today, or if you are in the shared ownership scheme and wish to move.

However, your household needs to be earning £80,000 per year or less if you live outside of London, or £90,000 per year or less if you live inside London. Scotland, Wales, and Northern Ireland run their own variation of the scheme.

If you are aged 55 or older, you can apply to the Older People’s Shared Ownership Scheme. If you are over 55, you can buy up to 75% of the property through this scheme. Once you own 75%, you will not need to pay rent on the remaining share. If you are disabled and struggling to get on the property ladder, the Home Ownership for People with Long-term Disabilities Scheme (HOLD) may be helpful.

If you are eligible, you should speak to your local council’s housing team or housing association. You will still need to pass affordability checks determined by your mortgage lender and provide a deposit. The deposit may be smaller than the deposit you would need if you were buying a house outright.

Furthermore, you should budget for the costs any home buyer would have, such as mortgage fees, stamp duty, moving costs, maintenance, repairs, insurance, and a service charge, if the property is a flat.

Which Rental Properties Are Most In Demand?

Which Rental Properties Are Most In Demand?

Renting a property continues to be a favourable option in the housing market, and popular rental properties are in high demand due to low levels of availability. This creates a promising opportunity for buy to let investors.

However, before you buy a house or flat and become a landlord, you should consider what constitutes popular rental properties in today’s market. With work and life patterns changing in response to the current pandemic, people are reassessing where and how they live. This creates high levels of activity and demand in the rental market, so if you know the trends, you are on your way to building a successful rental property portfolio.

 

Popular Locations

The location always has and will continue to play a crucial role in where you are likely to find success as a landlord. Buying in the right place will demand the highest rental prices and have tenants lined up.

According to letting agent Howsy, tenant demand is highest in Newport, followed by Bristol, Nottingham, Cambridge, and Belfast. Portsmouth, Plymouth, Bournemouth, Manchester, and Leicester are also crying out for popular rental properties. The lowest demand is in locations such as Aberdeen, Swansea, and Leeds.

Within London, Bromley, Bexley, Lewisham, and Sutton top the rankings, closely followed by Merton, Croydon, Haringey, Greenwich, Enfield, and Kingston.

According to Zoopla, the average rental price is increasing in Preston, Sunderland, Rochdale, Leicester, York, and Bristol, so these are good locations to consider.

 

In Demand Properties & Amenities

Many renters are looking to upsize, seeking more space as they spend more time at home due to minimising social contact during the pandemic. A home office space is top on the list for many who have now found themselves working from home. Internet connectivity and speed are also important factors. The most popular rental properties will be those close to open spaces such as parks.

In most locations, houses are in greater demand than apartments and flats. However, Manchester and Liverpool are two examples where flats still top the bill. Amenities in high demand include those that provide the most convenience, including washer-dryers, dishwashers, and microwaves.

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