New Homes Week is taking place February 27th – 3rd March, an annual celebration and recognition of new build homes, homebuilders, and homeowners. We are taking part by sharing some information to help with buying your new home.
Advantages of a New Build
There are many advantages to buying a new build home:
• Low maintenance costs – Maintenance costs are usually low for the first few years as all the fixtures and fittings are brand new.
• Cheaper energy bills – Modern energy rating standards mean that all new build homes must be built to much stricter specifications. Double glazing and modern insulation will help with those forever rising energy costs, making your home cheaper to run and saving you money in the long term.
• Reduce your carbon footprint – You can do your bit for the environment and reduce how much electricity you use, with energy-efficient appliances, energy-efficient home design and energy-efficient materials.
• 10-year structural warranty – New builds will often come with a 10-year warranty, meaning from day one, you are protected from the high costs associated with repairing any major structural defects.
• No upward chain – You are the first to live in your new home, you don’t need to wait for somebody to move out – when it is built and you are ready, you can move in.
• Special incentives – Some developers may provide extras such as white goods or allowances towards legal fees or stamp duty. Shared equity and ownership schemes allow you to purchase the property or a percentage when you are not able to cover the full purchase price.
• Feel part of a community – New build homes often have a community of homes close by. With everyone in the neighbourhood starting their exciting new chapters at around the same time, you can share these experiences with neighbours and build a small community from move-in day onwards.
The New Build Conveyancing Process
• Find a property – Research the reputation of the developer of the property and make sure you know exactly what you are buying. You are likely to be basing your decision on a showroom, so investigate where exactly your home will be and ask for a detailed specification listing the materials, fixtures and fittings that will be used. Some developers offer incentives and these will vary so check carefully what is being offered.
• Developers schedule – There are usually two dates to keep in mind:
o Target date: when the developers expect to have finished building your home.
o Long-stop date: when the developers must have finished building your home. If it takes longer, you have the option to end the agreement to buy the property.
• Appoint a solicitor – We recommend you choose a New Build specialist team, like ours here at Spire Solicitors LLP. This is because the conveyancing process for New Build properties can be more complex than normal.
• Secure a mortgage – Finalise the arrangements and get a formal offer of finance. The mortgage lender will arrange for a valuation survey. If you are buying off-plan, it will be based on the plans and specifications from the developer.
• Pay the deposit – The deposit will be 10% of the total property price. You will pay these funds to the conveyancing solicitor.
• Exchange contracts – Prior to exchange of contracts the conveyancing solicitor will check the terms of contract and draft transfer/lease, the title to the property, the planning documents and any other relevant documentation.
• Snagging list – Walk around your new home and identify any issues that you feel haven’t been completed to a satisfactory standard which need to be addressed by the developer.
• Completion – on exchange the date of completion will either be a fixed date or remain on notice, depending on the stage of construction. On the day of completion you can collect your keys and move into your new home.
Our team of experts are highly experienced in achieving a successful outcome. To find out more, or to discuss your individual requirements contact our New Build team on 01603 677077. Find our simplified and easy to understand process infographic for buying a new build home here.