Our friendly and experienced New Build team can guide you through every step of buying a new home. From finding the perfect property, to getting your keys, we will be on hand to answer any questions and ensure a smooth and timely transaction.
When it comes to buying your new home, the decision of whether you buy a new build, or an older house is a very personal choice.
Advantages of a New Build
The advantages of buying new over old are:
- Maintenance costs are usually low for the first few years as all the fixtures and fittings are brand new.
- Double glazing and modern insulation can mean your energy bill is much lower than an older house. Today’s building regulations require the property to be built as energy efficiently as possible.
- A new build home will often come with a structural warranty for the construction of the property, usually providing 10 years of cover. Should defects arise, the warranty can be used so that defects may be fixed at little to no cost to the buyer.
- New homes can be personalised, some developers allow you to choose the finish of the property and add extras to make the property your own.
- Some developers may provide financial incentives of up to 5% of the purchase price including contributions towards SDLT, legal fees and moving costs which will be treated as a deduction from the monies payable on completion. The developers may also include extras such as white goods or specification upgrades such as flooring.
- There are government backed shared equity and ownership schemes, which allow you to get on the property ladder where you are not able to cover the full purchase price.
- New build developments often have management companies to manage and maintain communal areas. This will usually come with an annual estate charge for freehold properties and service charge for leasehold properties.
- There is no upward chain which means you can move into your new house when you are ready.
- Some developers have part-exchange schemes, removing the hassle of selling your home and purchasing your new one.
The New Build Conveyancing Process
- Reserve your chosen property with the developer by having an offer accepted and usually by paying a reservation fee, deductible from the deposit payable on exchange;
- Choose your legal representative and advise the developer whose own legal representative will then arrange for contract papers to be issued. A deadline to exchange will be set at around 4-6 weeks from the point contracts are issued;
- Your legal representative will review the contract pack and searches, raise enquiries, review how the purchase is being funded and report to you on the contract pack and mortgage offer (where applicable);
- When you are happy with the report you can sign and return the contract, your legal representative can then proceed to exchange of contracts;
- If the property is already built, a fixed completion date may be agreed with the developer, setting the date you will legally complete and become the owner of the property. If the property is still under construction the developer will advise of the date they anticipate completion taking place which may be a few months in the future; and
- Following legal completion, you will collect your keys from the developer and at this point your legal representative will submit the SDLT return on your behalf and apply for the property to be registered in your name at HM Land Registry.
Important Considerations
To try and tackle the national shortage of property, the number of new build developments across the UK is increasing rapidly. New build homes can be appealing for several reasons, however, we often hear stories about nightmare builders and new-build developments. To lessen the risk of buying a property which you later wish you hadn’t it is important to consider the following:
Who Are the Developers?
There are many different companies in the UK offering everything from affordable housing to luxury apartments. The choice might seem bewildering and so it is important to carry out some research to see which developer matches your requirements. Look online to see what other people are saying and visit the developer’s other sites to see the overall finish. We can assist you through this process and provide guidance on what to look for in a developer.
What Guarantees Do They Offer?
If you move into a newly built property, you’re going to want reassurance that the developer will fix any problems that occur. New build homes will often come with a 10-year structural warranty which is essentially an insurance policy for newly built homes. Put in place by the builder or developer the structural warranty is in place to protect you, the buyer, from having to pay to fix any major structural defects affecting your home.
It is also important to make sure you have an opportunity to visit the property prior to completion to carry out “snagging”, allowing you to identify cosmetic or more serious issues with the property. You can either attend to snagging the property yourself or appoint a professional to carry out a snagging survey. By ensuring that the remedy of any snagging is agreed prior to completion, it will avoid any disagreement over when damage may have been caused.
The National House Building Council (NHBC) is the UK’s main warranty and insurance provider, with its Buildmark guarantee covering 80% of new homes. There are other providers available, such as Build-Zone and Premier Guarantee, who offer very similar (but not identical) terms.
We can provide further information and discuss the guarantees available to you to ensure you and your property are protected.
What Information Does the Developer Provide?
When purchasing a newly built home you will want to get as much information as possible about the property you are buying. The developer should provide: a general description of the property and who is selling it; a copy of the title deeds; information about the property held by local authorities; information on water, drainage and the environment, and copies of any planning documents.
How Much Say Do You Have In the Building Process?
If you commit early enough in the development, you may be able to customise certain aspects such as the decoration, fixtures and fittings, and flooring.
What Costs Are Involved?
The costs can vary between each developer and whilst some developers may be able to negotiate on price, others may look to offer more incentives or financial assistance. These can include free furnishings or paying your legal fees or stamp duty.
Our highly regarded and friendly solicitors are on hand to guide you through the process of buying a new build home and to answer any questions you have.
