Are you buying a New build Home?

What is a new build property

A new build property is a brand-new home which has never been lived in. Recently, there has been a great emphasis on building more houses to tackle the property shortage, therefore many properties on the market today are New build properties.

Why purchase a new build property?

New build properties are less likely to require works or maintenance at the point of purchase than an older property. Energy and heating bills may also be cheaper since new homes are more efficient and better insulated.

If you are buying your home off-plan (before it has been built) then you will often have some input into some of the design features of the house.

Many fixtures and fittings which you would normally expect to pay for in an older property are already installed in new build properties. For example, double or triple glazed windows, insulation, energy efficient heating and white goods such as dish washers are often already present in new build properties.

What is the process of buying a new build home?

• Consider your wider financial situation – having the right guidance on your mortgage and your finances is vital. This way you can make a budget you know you can afford before you start visiting properties. If you are a first-time buyer, it will be useful to have an Agreement in Principle with your lender. The Developer from whom you are purchasing may be able to recommend the services of a broker which has experience with new build properties and First Homes Scheme.
• Finding a property – Next, you should find a property you like. If you are planning on buying a new build through the First Homes Scheme, then you will need to check that the development is participating in the scheme. It is the buyer’s responsibility to know what they are buying; hence you must carefully research the area and developer to make sure you are happy with your purchase.
• Make an offer – If you decide to buy a property and are comfortable with the mortgage repayments, then you are ready to make an offer. It does not have to be the asking price, and if accepted, you will need to pay a reservation fee which will be deducted from the purchase price upon the completion of the purchase. It is not uncommon for the developer to offer the purchaser legal incentives such as a contribution towards the buyer’s legal fees or stamp duty. Any financial or non-financial incentives will need to be disclosed to your mortgage lender.
• Legal and financial advice – PLS is specialised in property and will complete the legal side of the purchase quickly and efficiently. Our team is experienced in dealing with new builds, which often involve high volumes of complex documentation. We can also negotiate a date for you to receive your keys and apply for the funds from your lender which you need to buy the property. At this early stage, you need to begin applying for a mortgage. The lender will then process your application and carry out their valuation of the property which you intend to purchase. When your mortgage offer is finally issued, a copy will be sent to you, your mortgage broker and solicitor. The solicitor’s copy generally arrives around one week after you receive your copy.
• Moving In – Exchanging contracts can be a lengthy process, but at this point you will pay your deposit. Completion dates with new builds are often delayed by developers and having a skilled conveyancer at this stage is essential. PLS will ensure that both you and your lender are kept up to date throughout the entire process.