Buying a new build property

Here are the key distinctions:

New Build Property:

Age: A new build property is a home that has been recently constructed or is still under construction. It has never been lived in before.

Condition: As it is newly built, a new build property is in pristine condition with all the fittings, fixtures, and appliances being brand new.

Customization: Depending on the stage of construction, buyers may have the option to customize certain aspects of the property, such as interior finishes or layout.

Building Regulations: New build properties must adhere to current building regulations and safety standards, offering higher energy efficiency and modern amenities.

Warranties: Developers provide warranties and guarantees for new build homes to cover defects and structural issues for a specified period.

Incentives: The governments or some developers may offer incentives or schemes to support new build purchases, such as Help to Buy programs.

Existing Property:

Age: An existing property refers to a home that has been previously owned and lived in by one or more occupants.

Condition: The condition of existing properties can vary significantly depending on their age, maintenance history, and previous owners’ care.

Limited Customization: While buyers can renovate or redecorate existing properties, there are limitations on the scope of customization compared to new builds.

Building Regulations: Existing properties may not always meet the most current building regulations and energy efficiency standards, requiring potential upgrades.

Established Neighborhood: Existing properties are usually located in established neighborhoods, which might have a well-developed infrastructure and community.

Historic or Unique Features: Some existing properties may possess unique architectural features or historical significance that new builds lack.

When choosing between a new build and an existing property, it’s essential to consider your preferences, budget, and individual needs. New builds offer a fresh start with modern features, while existing properties can provide character and established surroundings. It’s often wise to weigh the pros and cons of each option before making a decision.

Preparation is crucial when purchasing off-plan, which means a property that hasn’t been constructed yet. This approach does carry risks, as your decision relies on show home representations and images in a brochure, leaving you to trust the developer’s ability to fulfil their promises.

Buying off-plan does entail some uncertainties, but it also offers advantages. Securing a plot on a desirable estate at a discounted price is a significant perk. Additionally, your new home might increase in value even before you move in, potentially presenting a favorable investment opportunity.

Despite the allure of off-plan purchases, it is imperative to exercise caution and perform thorough due diligence. This includes researching the developer’s track record, understanding the terms and conditions of the purchase contract, and ensuring the property aligns with your preferences and needs.

Partnering with experienced conveyancing lawyers and seeking legal advice can further safeguard your interests during the off-plan buying process. With proper preparation and informed decision-making, you can minimise risks and make a sound investment in your future home.

You should remember that the marketing materials and show homes presented by the developer’s salespeople are often ideal representations of the final product. Your actual home might be in a different location within the estate, potentially resulting in varying levels of light, noise, and different outlooks from the windows and outside areas.

To ensure that the finished home meets your expectations and desired standards, it is vital to scrutinise the property thoroughly. Request a detailed specification from the developer, which should list all the materials, fixtures, and fittings used throughout the property. This information will enable you to assess whether the developer has adhered to the necessary quality standards outlined in their warranty. If there are any discrepancies or concerns, it’s crucial to address them with the developer before the final completion of the property. This ensures that any necessary adjustments can be made.

Being proactive and informed during the off-plan buying process will help you avoid potential disappointments and ensure that your new home becomes a place where you can enjoy comfort and satisfaction for years to come.

Developers often entice customers with money-saving incentives to attract potential buyers, such as help to buy schemes, stamp duty incentives, part exchange details and allowing you to choose fittings and appliances without additional charges.

While these incentives can be attractive, it’s crucial to be fully aware of what is and isn’t included in the total cost of the home to avoid any surprises later on. Some financial incentives, such as a developer covering your SDLT or legal fees, can potentially influence the amount your mortgage company is willing to lend you.

This situation presents an excellent opportunity for negotiation, not only on the property price but also for additional fixtures or fittings that you may want included at no extra cost. Being well-informed and prepared during negotiations may help you secure a more favourable deal.

Buying a new build property can be subject to delays, and it’s essential to be proactive in checking with the developer to ensure your home will be completed on time. In this regard, there are typically two dates to keep in mind:

• Short-stop date: This is the date by which the developers anticipate completing the construction of your home.
• Long-stop date: This is the final deadline by which the developers must finish the work. If the construction extends beyond this date, you are entitled to rescind the contract and receive a refund of your deposit, although you may wish to extend this date if you decide to. If you are having a mortgage the long stop date is normally set at the date of the expiry of your mortgage offer. This will ensure that you have the required funds on completion.

Being aware of these dates and the potential for compensation can help you plan and manage your expectations during the construction process. It’s essential to stay in communication with the developer to be informed about any progress or potential delays.

Additionally, if your home is one of the first properties to be erected on the development, it’s prudent to enquire about the extent of disruption you may experience while other homes are being built. Understanding the construction timeline of the development and potential disturbances can assist you in making informed decisions and preparations for the period of development.

By being proactive and keeping yourself informed, you can navigate any potential delays or disruptions more effectively and have a smoother experience throughout the home-building process.

Management fees, also known as service charges, are usually payable on all new estates and can significantly impact your budget when considering a property purchase. It is crucial to factor them in when assessing whether you can afford a property. These fees are commonly associated with both leasehold and freehold properties and are to cover the maintenance and upkeep of communal areas, such as hallways, lifts, and roads. If you are buying a leasehold property, then there will be other regular fees you will have to pay in addition such as ground rent.

The costs of management fees can range from hundreds to even thousands of pounds annually, depending on the property and its amenities. Such expenses can put a strain on some people’s budgets, making it vital to be well-informed about these charges before committing to a property purchase.

Prior to reserving a property, always request detailed information from the developer about the management fees. These details should be provided in the property’s specifications or the reservation agreement. Asking specific questions can help you understand the extent of the fees and their implications:

• Inquire about the amount of the management fees and what services they cover, including whether they include buildings insurance or if money is being reserved for significant future maintenance.
• Ask if all residents on the estate pay the same management fees and seek clarification if there are discrepancies between properties.
• Find out when the management fees are due and how much they are expected to increase over time. This will help you budget accordingly and be prepared for potential fee increases in the future.

Being well-informed about management fees will allow you to make informed decisions and avoid any surprises or financial strains related to your property purchase.

Navigating mortgages can be challenging, and purchasing a new-build property adds another layer of complexity. Here are some crucial considerations to keep in mind:

• Lender Caution with New-Builds: Some lenders may approach new-build properties with caution. Concerns might arise about the property’s potential depreciation, or the construction materials used, such as cladding. Consequently, obtaining mortgage approval for a new-build could prove more difficult, and the lender might impose limitations on the mortgage amount for such properties.
• New Build Warranty: Each lender has a list of new build warranties that they will accept so it is important to ensure that the insurer is approved by your lender. You should speak to the developer to determine who their insurance is (ie. NHBC or other) and your mortgage broker to ensure that your proposed lender will accept insurance from that particular insurer.
• Mortgage Offer Expiry: Typically, mortgage offers are valid for a period of three to six months. This time frame is generally adequate if you are purchasing a new-build property that is already (or close to being) completed. However, it could become an issue if you are buying a property where construction has not yet begun or is in the very early stages.

If your mortgage offer expires before the purchase is finalized, your lender may require you to restart the entire application process. By then, interest rates might have increased, and there will be another rigorous check on your credit history. Unfortunately, there’s no guarantee that your application will be approved a second time.

To navigate these challenges successfully, seeking assistance from a mortgage broker is highly recommended. A broker possesses valuable insights into lenders that are more receptive to new-builds and can advise you on the likelihood of being approved as a borrower. Moreover, if you need a swift mortgage offer (e.g., due to a tight timeline between property reservation and contract exchange), a broker can recommend lenders with the fastest turnaround times.

When reserving a new-build property, it’s common to pay a reservation fee ranging from approximately £500 to £2,000. However, be cautious as these fees are often non-refundable after a certain period, or only partially refundable. Before making any reservation fee payments, check the developer’s policy on ‘cooling-off’ periods, which allows a full refund if you decide to withdraw early.

Here are essential details you should look for in your reservation agreement:

• Reservation Fee: Confirm the amount of the reservation fee, which should be deducted from the total property price.
• Total Purchase Price: Clearly understand the overall cost of the property.
• Cancellation Rights: Review the terms and conditions related to your rights if you choose to cancel the reservation.
• Property Details: Ensure you have information on the property type, plot number, development name, postal address (if available), parking arrangements, and other relevant details.
• Estimated Completion Date: Find out the expected date of completion if the property is not already built.
• End of Reservation Period: Determine the exact date when the reservation period ends.
• Management or Service Fees: Be aware of any ongoing management or service fees you’ll be responsible for paying.
• Tenure: Clarify whether the property is leasehold or freehold.
• Ownership Details: Understand if there are any parts of the property that you won’t immediately own or gain ownership of.

Additionally, it’s essential to enquire about the specific inclusions in the purchase price. Ask whether the balcony, parking space, show curtains, carpeting, tiles, or any other extras are included.

Be thorough in your enquiries to avoid surprises and ensure a smooth and transparent property reservation process.

Our team consists of friendly and highly experienced professionals who possess unparalleled knowledge of Frome and the surrounding area. We understand the stress involved in buying and selling properties, which is why we ensure that you have the same team supporting you throughout your entire transaction. They will be by your side every step of the way, working diligently to ensure a smooth and seamless process.

Transparent Pricing: When we furnish you with a written quote, rest assured that the price will remain unchanged unless the original information provided by you is incorrect or unforeseen circumstances arise.