The process of purchasing a new build home is not the same as traditional home buying.
A new build property is one that has never been lived in before and is completely brand new. A national property shortage in the UK has seen a major emphasis on building more properties, with the government stating plans for 300,000 new homes by 2025.
Our new-build property experts have put together the following guide to the purchasing process, including the schemes designed to help you buy one.
Why purchase a new build?
One of the key benefits to purchasing a new build is that it will need very little maintenance, if any at all, due to the fact no one has been living there before you. The energy costs are also expected to be significantly cheaper than an older property, as these buildings are built with insulation, double glazing, and energy efficiency front of mind.
The stages of buying a new-build
There are four stages to buying a new-build home. Before embarking on this process, you should be aware that housebuilders and developers can operate in different ways, which means the offerings of one can be vastly different to another.
- Find your property. Many new builds are sold off-plan (they have not yet been built), so you may view a ‘show home’ and extensive plans.
- Reserve your new home once you have found development and decided to purchase it. You will pay a reservation fee to secure it.
- Organise the paperwork. You can hire a conveyancer to deal with the legal aspects of your purchase. The mortgage will also need locking in.
- Preparing and moving in. As you approach the competition date, you will need to prepare by finishing any outstanding paperwork. Before moving in, it is advisable to conduct a snagging survey to check for any defects. Once completed, you will be able to move into your new home.
Buying schemes are available for new-builds
There are schemes available from the government that support people looking to purchase a new build and get onto the property ladder.
The newest of the schemes is the Depisot Unlock, which has been set up by the house-building industry to allow first-time buyers and existing homeowners to purchase a new-build home with just a 5% deposit. 26 housebuilders are taking part, providing customers with competitively priced mortgage products to make buying a new home more affordable.
Shared Ownership is another government scheme that offers you the chance to buy a share of a property from a housing association. As you will only be purchasing part of a property, you can buy it with a smaller deposit and mortgage. You will still need to pay rent and fees for the parts you do not own.
You’re protected with new-build warranties
Those purchasing a new-build home can have peace of mind that they are protected by new-build warranties. Many house builders and developers offer a protection scheme from the National House Building Council (NHBC). More than 90% of homes in the UK are covered by the NHBC, Premier Guarantee, LABC Warranty and Checkmate. A new home warranty of 10 years is likely to include the following:
- Cover for the first two years of ownership, whereby the house builder is responsible for fixing certain damages.
- Insurance for parts of your home, such as structure, floors, staircases, drains and windows.
- Pre-completion insolvency cover protects you if your house builder becomes insolvent after you have signed the contract to buy one of their new homes.
JVB Construction is a construction company operating in Surrey and the southwest. If you are planning an extension, renovation or new build, contact us today for a no-obligation quote and more information.