New build purchases
It’s sometimes more cost effective in terms of buying a property within your budget to buy it before it’s been built.
Many property developers and builders often sell all or part of a development before the building work has been completed.
How does it work?
Usually an interested buyer will view the plans and drawings and pay a reservation fee for a unit. This fee is normally up to a maximum of £1000. Once 28 days has passed the buyer will be asked to pay a 10% deposit and, in most circumstances, if the buyer changes their mind before the 28 period is up, the reservation fee is generally refundable.
Depending on the nature and size of the development, the buyer will have to wait for anything from a few months to a year until the development is close to completion before the developer will provide a moving in date. The balance owed on the property is payable on completion.
Buying off a plan can provide you with an excellent investment, especially in a rising market as you'll be buying at 'last year's prices'. You'll also be able to personalise some of the internal fixtures and fittings (and in some cases exterior) and it can often making buying in a desired area more affordable, especially for first time buyers.
Once you reserve a plot from a developer, a pro forma missive (offer to purchase) will be issued to us to act on your behalf. A copy of the missive will be forwarded and you will be invited to discuss the terms of the missive with a member of staff in order for us to proceed to conclude the contract on your behalf.
Once the contract has been concluded, the developer’s solicitors will provide us with a copy of the development’s title deeds to examine. Following our examination of the title deeds we shall provide you with a report which includes providing you with a copy of the Deed of Conditions by the developer which gives details of the various conditions affecting the ownership of your property.
At this time we will also prepare the mortgage documents (Standard Security) if you have arranged a mortgage to fund your purchase.
When the property has been inspected and passed as fit for habitation by the Local Authority and NHBC, you shall have a period (normally 14 days) in which to settle the purchase price (unless date of entry has been agreed between yourself and the developer). We will ensure that loan funds and any balance required from you are with us in time for the date of entry.
Following settlement, the Disposition (the deed giving you title to the property) and Standard Security will be forwarded to the Land Register for registration. Once these deeds are returned to us they will be forwarded to your lenders to hold until you come to sell the property or repay your loan with them. Copies of these documents will be sent to you for your information.
There are many different ways new build properties can be purchased including housebuilder and government funded schemes. To find out more about the available schemes, please click on the links below: