LENDERS must act now to ensure that they are fully prepared for the advent of the ‘new normal’.
On Monday, May 31, 2021, the ban on bailiff-led evictions is expected to be lifted and, after that, it will become possible to enforce possession orders once again.
It’s perhaps worth noting at this point that similar bans on enforcement action in Scotland and Wales are due to be lifted at later dates.
The ban in Wales has been extended until June 30, 2021, while in Scotland, it’s September 30, 2021 – although both dates will be subject to regular reviews.
But this does mean that – barring an unforeseen spike in coronavirus – some semblance of normality when it comes to enforcement could soon return nationally.
So, what must lenders who are encountering default loans do now?
It remains imperative that the most proactive approach possible is consistently taken when it comes to Property Receivership and enforcement.
Throughout the pandemic, CG&Co has ensured that cases are as far advanced as possible by engaging with borrowers and by issuing all pre-action correspondence and possession proceedings online.
We’ve also found that this proactive approach has also regularly resulted in many borrowers seeking voluntary agreements for surrendering possession.
The rationale behind our approach is simple.
All the indications are that the courts will be swamped with orders for possession in the coming months.
Indeed, research carried out by the Resolution Foundation has estimated that rates of arrears in January 2021 were “at least twice” what they were going into the crisis.
And lenders owe it to themselves to ensure that they’re consistently able to use their own funds to relend at rates that are most advantageous to them.
CG&Co has worked tirelessly on behalf of our clients throughout the pandemic and – as a result – I was delighted to be asked to speak at a forthcoming digital event exclusively for lenders entitled ‘Lending after Lockdown’.
It’s been organised by Brightstone Law and Westcor International, which offers title and legal indemnity insurance, for all senior individuals in the specialist finance industry.
The event which takes place on Tuesday, May 11, between 10am and 11.30am will cover the intricacies of originations and recovery in short term property lending. Further details are available by visiting https://www.lendingafterlockdown.co.uk/ .
To my mind, this is the ideal time for a discussion of this nature to take place.
In recent weeks, many lenders have increasingly changed their focus from crisis management to planning for the future.
It’s universally acknowledged that short-term finance will continue to have an essential role when it comes to facilitating a rapidly changing market – from helping to fund commercial to residential conversions or providing solutions to the complex issues around urban regeneration and environmentally friendly constriction.
As the new normal finally begins to manifest itself, it’s never been more important for lenders to ensure that they are expertly briefed and fully prepared for the brightest possible future.