Purchasing a New Build
Purchasing a new build property sure sounds enticing, however, you will have to factor in certain considerations before making the biggest financial commitment. New builds are immensely popular amongst first-time buyers as they are built to the modern standard and require a low level of maintenance.
Purchasing a New Build
As the name implies, a new-build property is newly built that has yet to be lived in. These properties ensure minimum fuss and upkeep and provide optimal security and comfort. New builds are more energy efficient and better insulated than period homes.
If you buy a property where construction work has not started or is in the process of being built, it is called buying ‘off-plan’. New build properties appeal to the property buyers due to the following benefits
- The buyer will get to be the first one to live in the house
- Reduced repairs and maintenance costs for the first few years
- Buyers can tailor the property interior to their taste and needs
- Typically, new builds come with warranties, for instance, the properties registered with the National House Building Council (NHBC) have a 10-year warranty
- Minimal running costs and energy bills
- Many buying schemes are available for purchasing a new-build home, for instance, Deposit Unlock and Help to Buy schemes
The Process of Purchasing a New Build Property
The process of buying a newly built property or home is largely the same as other properties.
Check Your Finances
First of all, consult a mortgage provider or financial advisor to check how much you will be able to borrow. This will help you understand what you can realistically afford and provide you with an accurate budget before searching for properties. Moreover, factor in additional costs when buying properties, for instance, solicitor’s fees and stamp duty.
Go Property Hunting
Next, find and research different developments in the local area to ensure it has all the facilities you need. Thoroughly research the developer’s track record and confirm that the builder is a member of the National House Building Council (NHBC).
Visit the new-build developments with a realistic price range in mind and do not hesitate to enquire about the properties and what is included.
Make an Offer
Make an offer after getting your finances in order and finding a suitable new build development. The buyer does not have to ask price from the seller as it can be negotiated afterward.
If the seller accepts your offer, pay the reservation fee ranging from £500 to £2000 to reserve the house for a 28-day period. The reservation fee is deductible from the purchase price, however, it is not refunded if the buyer does not close the deal.
Start the Legal Process
Now, it is time to hire a licensed conveyancer or conveyancing solicitor to deal with the legal aspects of the transaction. As the process is slightly different, find a conveyancer who has previously dealt with the purchase of new builds.
The conveyancer will help you walk through the process and negotiate with the sellers on the terms of the contract.
Exchange Contracts
Both parties exchange contracts months before the buyer moves into the newly built property. At this stage, the solicitor will check the relevant documents, terms of the contract, and raise queries to the local authority. Additionally, the buyer will be required to pay a deposit of 10%-30% of the purchase price.
Wait for Completion
The developer will give a completion date, however, it can be subject to significant delays. Once done, the buyer will receive the keys and prepare to move into the new property.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
About the Author
