Buy-to-let landlords and businesses will be pleased to hear that the government’s emergency measures in place to protect homeowners also expand to protect them too. The three-month mortgage payment holiday is extended to support all homeowners and landlords. This also includes those who have borrowed through limited companies.
Chancellor of the Exchequer, Rishi Sunak, announced the mortgage payment holiday to help anyone with property management throughout these uncertain and difficult financial times. This mortgage payment break applies for all buy-to-let landlords, both those with finance in their own name and finance acquired through a limited company.
This protection for landlords is a welcome relief for many, as the plans to stop evictions for the next few months left them worried about their properties. Landlords, as well as tenants, need protection during this time and the measures in place go some way to protecting finances when it may become difficult to make a living.
Home Repossession Suspension
The Financial Conduct Authority has asserted that the government’s measures for homeowners and buy-to-let property owners also included a suspension of possession action. This has been guaranteed for the same three-month period and ensures that property owners should not have to worry about losing their properties during this period.
People may already be experiencing financial difficulty due to the COVID-19 outbreak and these new measures should ensure they are protected for the coming months.
No Evictions Worries the Landlord Community
Understandably landlords are concerned that evictions are potentially no longer going to be possible. Many worry that their tenants will simply stop paying their rent, without good reason to do so, which is why it is even more important that these protective measures for landlords are in place. Emergency legislation says that landlords cannot start eviction proceeding for at least three months. The Housing Secretary, Robert Jenrick, made the government position clear when he said: “The government is clear – no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.” With this in mind both landlords and tenants shouldn’t worry for the next few months at least, allowing them to focus on protective measures for their health and the health of others.
Mortgage lenders are obliged to provide up to three months’ relief to those who apply for it, so landlords do have this safety net should their tenants be unable to pay their rent. As measures to prevent the spread of the virus become stricter, it is more important than ever that people listen and act accordingly with government guidance.