Well it’s Friday again and things seem to be closing in a bit… let’s hope the valuers keep working.
I thought, as this industry is definitely one of the winners during this pandemic, I would discuss managing timescales and how we can take advantage of them. Currently the property market is incredibly busy. That is great, when so many businesses are really struggling… BUT we have to keep abreast of timescales when we are starting our projects.
We are seeing a lot of investors overlapping projects. Not knowing the delays, particularly if you need the funds from a refinance, will cause cashflow and stress problems.
These are the main areas to concentrate on as an investor
- The timely return of documents. Lenders have service level timescales, which really can range from 24 hours (bridging) to 15+ days (term). Our job is to get as full a pack as possible up to the lender, so we don’t keep going into a queue.
- Use the time we will have to wait for a valuation report to be returned to your advantage. This can be dead time, so making sure we have a full set of documents required can save many days, as we can get that in ready for them to meet the report – therefore requiring the underwriter to look just the once.
- Do your groundwork, so you minimise the surprises. Make sure that your lawyers have seen Land registry documents, so there are no curve balls later on.
- Source of deposit. Lenders need the audit trail – so keep those documents in one place for ease.
- Buildings insurance – put that on risk, ready for the reinstatment value confirmation from the valuer, again that eases the last minute stresses.
- Valuations – we have covered this a couple of weeks ago, but as we move towards another lockdown, keep abreast of how your tenants are, so you are aware of any quarantine issues and giving them plenty of notice and contact details so they can let you know if there is a problem.
- Be realistic of the value if it is a refinance. If it is needed for another project, make sure you are working towards the most conservative value – you don’t want drop on the value scupper your plans.
As always we are here to talk you through any questions you have. The advantage of using a broker like us is that we stay one step ahead as much as possible!