- Milton Keynes 01908 660966
- Northampton 01604 828282
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Pick the right home for you
Developers and Development Sites vary widely as to how they work, what they offer and the development schemes available.
Before committing to buying a new build property you should research the developer, visit the site and possible speak to some of the residents who have already moved in to their new homes. If you are looking to relocate to a new area, investigate the surrounding area – transport links, schools, amenities and all other local facilities will vary between locations.
The sites sales office should have a range of literature available to you to help you in your decision making process.
- Finance
If you need mortgage finance to be able to purchase the Property, make sure you consult a mortgage advisor before you get too involved with viewing properties, so as to be sure what your purchase price budget is. A mortgage advisor will have an in-depth knowledge of the mortgage market as well as any government schemes intended to help homebuyers with a new build property purchase. You may also want to have a mortgage agreement in principle, so that before you move to the next step you are confident that you can finance your new property purchase. You will need to finalise your mortgage and make a full application after you have successfully reserved your new home.
- Reserve your new home
Once you have found a property that you want to purchase and have finances in place, you will be able to reserve your new property with the developer and pay the reservation fee.
The reservation fee will be anywhere between £500 and £2000 and will secure the property for you for 28 days. During the 28 day reservation period you will need to progress to being able to exchange contracts. The reservation fee is deducted from the final price when your purchase completes.
- Appoint your Property Lawyer
The Developer may encourage you to use a Lawyer from their panel of preferred Lawyers – you are not obliged to do so and can choose your own if you wish to.
We would advise that when looking for legal representation that you look for a Law Firm who have a specialist new homes department, such as ours, as we are familiar with the deadlines involved and know how to deal with the extensive development documentation supplied.
- Pay the deposit & exchange contracts
The deposit payable on exchange of contracts for any property purchase is 10% of the Purchase Price. The deposit will be requested by and paid to your lawyer once all legalities are satisfied (i.e. searches and mortgage offer received, enquiries replied to and all signed documents being in place). The deposit will be paid to the Developer on exchange of contracts, or may be held by the Developers Lawyers where the new home warranty does not cover insolvency of the Developer in order to protect the deposit paid.
- Make a snagging list
Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.
If you’re thinking of purchasing a new build property and would like some advice and assistance, please do not hesitate to contact our New Homes team on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk.
There are advantages and disadvantages when it comes to deciding between buying a new build or existing property. You will need to weigh up what factors are most important to you from your list of “must-have” features and which type of property ticks the most boxes for you.
To help you in making your decision, we have put together some pros and cons for you for both new build properties and existing “second-hand” properties.
New Build Properties – Pros
- Incentives – Some Developers will offer “extras” to secure a sale. Incentives are split between financial incentives and non-financial incentives. Financial Incentives could include stamp duty paid, a contribution towards legal fees or even estate agents fees paid if you have a related sale. Non-financial incentives could include carpets and flooring provided, or your kitchen white goods being provided at no extra cost, or even an upgrade to the standard kitchen or bathroom suite installed. The different incentive packages that a Developer is able to offer are often broad.
- Warranties – a new homes warranty will be available on most new build properties, which you don’t always get with a second hand property. New home warranties are designed to offer peace of mind that any defects will be put right and typically last 10 years.
- No chain – You won’t have a chain of buyers above you, which can often take away one of the biggest stresses of buying a home.
- Blank Canvas – a newly built property is a blank canvas with fresh paintwork, tiling, kitchen and bathroom. There should be little that you need to do before you can unpack and enjoy your new home.
- Design you own home – where you buy a property “off-plan” you will be able to pick the Plot that you wish to purchase based upon the design and specification of the property and may also be able to choose kitchen and bathroom layout and pick the fittings from a range of options.
- Low bills – all new builds have to comply with the latest building regulation standards, meaning that they are often more energy efficient than older properties.
- Modern living – Many new builds are built to a high specification which will include the latest technology.
New Build Properties – Cons
- Delays – not everything runs smoothly on a new build property and there can be delays outside of everyone’s control which can cause added stress, increase costs and also prove to be inconvenient where you are trying to plan your move around work, schooling and holidays.
- Snagging – there is often bad publicity in regards to poor quality new build homes. Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.
- Space – new build properties can often be less spacious than an older property due to the number of properties built on the site. This can often affect storage space within a property, so ensure that your furniture will fit and that you can get your car into the garage/on the driveway.
Second Hand Properties – Pros
- Character – there are plenty of older properties with features such as open fires, stained glass windows, exposed beams, sash windows which all add character to a property. These features often make us fall in love with a new property on an initial viewing.
- What you see is what you get – when you buy a new build property off plan it is often very hard to visualise what the property will look like and how it will feel to live in, but with an existing property you will be able to physically walk around and view the Property and see everything that you will be getting. A surveyor will also be able to attend to carry out a full inspection which will tell you everything you need to know about what you are buying.
- Community – an existing property may be in the heart of an established community, with pubs and restaurants close by and neighbours who have lived in the area for many years who will be able to give you historic background to the local area.
- Space – older properties are generally more spacious with bigger gardens.
- Potential for Alterations – whilst an existing home may not be “perfect” and may need some modernisation and alterations, you have some potential to put your own stamp on it and the ability to increase the value of the Property.
Second Hand Properties – Cons
- Chains – when you buy a second hand property it is likely that the current owner will also be looking to move to a new house, which will create a chain. Where you have a chain the wants and needs of all parties will need to be considered and the more parties involved the longer it can take for everyone to agree on timescales, which can make the move more stressful.
- Energy Efficiency – older properties are less likely to be as energy efficient as newly built properties. This could mean that your energy bills are higher with an older property.
- Maintenance costs – unlike a new build property you can expect an older property to need maintenance. Sometimes maintenance works will be required as soon as you move in.
- Renovations – you may want to carry out renovations and redecorate as soon as you move in, so you will need to budget for these extra costs.
The decision to buy a new build against an existing “second-hand” property will ultimately come down to personal preference. There is no right or wrong choice. Make sure you have all of the information you need before you exchange contracts and that you are buying the home that gives you what you need.
For advice in purchasing a new home, for new builds call our New Homes Teams on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk or for second hand properties, contact our Conveyancing Teams on 01604 828282 / 01908 660966 or email conveyancing@franklins-sols.co.uk.
Buying a new build home is a very exciting time, but can also be very daunting too, particularly given the timescales involved and the mountain of paperwork that comes as part of the purchase process. It is essential that you seek expert help and advice to make your purchase as smooth and stress-free as possible. To help you, here are a few key things to consider to ensure that you get expert help and advice:
Legal Matters
Most Developers will have Law Firms that they recommend, although you do not have to use the “preferred” Lawyer recommendation. We would advise that when looking for legal representation that you look for a Law Firm who have a specialist new homes department, such as ours, as we are familiar with the deadlines involved and know how to deal with the extensive development documentation supplied.
Financial Matters
Again, most Developers will have Mortgage Advisors/Financial Advisors that they recommend, although you do not have to use the “preferred” advisor, but it may be beneficial to do so, as they will know what additional information is required to support a new build mortgage application.
Stamp Duty
For information on Stamp Duty and the latest rates to help you budget for the costs of your purchase look at: www.gov.uk/stamp-duty-land-tax-rates. Even if your purchase does not attract a payment, it will still be necessary for a return to be lodged with HMRC on completion of the purchase – your Lawyer will attend to this on your behalf.
Arranging a Survey
Even through the Property you are purchasing may be newly built, you may also want to have your own survey carried out. Where you are purchasing with a mortgage, the mortgage lender will carry out their own valuation for lending purposes only – the lender valuation is not intended to be relied upon by any third party and is not a thorough survey of the Property. In addition, your own survey will look at the surrounding area in the vicinity of the Property, not just the Property itself. To find a surveyor in the area where your new property is, please go to www.ricsfirms.com and www.rics.org/usefulguides.
Buying a Leasehold Property
Your Lawyer will provide you with a full report and advice in regards to the Lease relating to your specific property and will be able to answer any questions you have. If you are seeking more general information before deciding whether to purchase a Leasehold Property, The Leasehold Advisory Service is government funded to provide free advice on the law affecting residential leasehold property – www.lease-advice.org
For help and advice in purchasing a new build property, call our New Homes Teams on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk.
In recent times, new build properties have surged in popularity among home buyers, offering a blend of contemporary living, energy efficiency, and the appeal of a fresh start. Yet, like any significant investment, there are nuances to navigate.
The process of purchasing a new build differs from buying an existing property, which is why it’s important to use a solicitor with specialist knowledge in this area to facilitate a seamless transaction.
In this article, we’ll look at the advantages and drawbacks of investing in a new build property, empowering you to make a well-informed decision.
Pros:
1. Contemporary Design and Modern Amenities: New build properties boast cutting-edge architectural designs and come equipped with modern amenities such as spacious open-plan layouts, sleek en-suite bathrooms, integrated appliances, and high-speed internet connectivity. These features cater to the demands of modern living.
2. Energy Efficiency: A standout benefit of new build properties is their energy efficiency. Incorporating state-of-the-art insulation, heating, and cooling technologies, these homes lead to lower utility bills and a reduced environmental impact. Some lenders even offer incentives such as Green cashbacks for investing in energy-efficient homes.
3. Customisation Options: Depending on the construction stage, developers may offer customisation options for finishes and fixtures, allowing buyers to tailor their new home to their unique tastes and preferences.
4. Builder’s Warranty and Guarantees: New build properties come with a builder’s warranty, offering protection against structural defects and major issues during the initial years of ownership. Additionally, modern appliances and systems often carry separate manufacturer warranties.
5. Lower Maintenance Costs: With everything brand new, new build properties typically entail lower maintenance costs in the earlier years compared to older properties that may require immediate repairs or renovations.
Cons:
1. Premium Price: New build properties often come with a premium price tag compared to older homes in the same area. Buyers should weigh whether the added cost justifies the benefits of a new build.
2. Completion Delays: Construction timelines are susceptible to delays due to factors like weather, labour shortages, or financial constraints faced by the developer. These delays can disrupt moving plans and cause inconvenience.
3. Limited Room for Negotiation: Unlike older properties where negotiation on the asking price is common, new build homes may offer less room for bargaining, especially in high-demand developments.
4. Potential Snagging Issues: New build properties may have minor issues that require attention post-move-in, known as “snagging” issues. These could include cosmetic defects or incomplete finishes, which a conveyancing solicitor like Franklins can help identify and address with the developer.
5. Unestablished Communities: Buying in a newly developed area means the neighbourhood might still be evolving, raising uncertainties about future growth, access to amenities, and the overall community vibe.
6. Varying Quality: Not all developers uphold the same standards of construction quality. It’s crucial to research a developer’s track record and gather feedback from previous buyers to ensure you’re investing in a reputable property. Your conveyancer will conduct due diligence, scrutinising the developer’s credentials, reviewing planning permissions, and investigating any legal or regulatory issues related to the property to safeguard your investment.
Navigating the Purchase Stress-Free:
Purchasing a new home is exciting. At Franklins our specialist New Homes department will offer invaluable support and guidance throughout the transaction. From due diligence and contract review to addressing snagging issues and property registration, conveyancers play a pivotal role in ensuring a successful and stress-free experience. With their expertise and assistance, you can confidently step into your modern, energy-efficient dream home.
For further advice and assistance please contact our New Homes team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
