Buying a new build home offers several benefits including a fresh canvas to build your dream home, a chain free purchase and a new build warranty.
However, there are also checks that need to be carried out that are specific to a new build purchase.
It is important to ensure all of these relevant checks have been carried out to avoid any issues arising further down the line.
If you are thinking about purchasing a new build home, our residential property team are available to support you through the entire process.
To discuss how our new build conveyancers and lawyers can help, please contact your local Kingsfords office in Ashford, Cranbrook or Hythe. Alternatively, you can send an enquiry and a member of our team will get back to you promptly.
Want to see how much your conveyancing might cost? You can get a competitive quote with no obligations.
How does the conveyancing process differ for new build homes?
The conveyancing process for new build properties can differ significantly, due to the involvement of the developer and additional checks that need to be carried out due to the property's new build status.
One of the key differences is the time frame for securing the property which often happens at an early stage. New build homes often have competition from buyers, therefore you will likely need to pay a reservation fee to secure the property which will be taken from the final purchase price when you complete.
Another unique aspect is dealing with planning permissions and building regulations. New build conveyancers and lawyers need to ensure that the developer has obtained all necessary approvals and that the build complies with these regulations. They also need to check for any restrictive covenants or obligations that may affect the property.
Newly built homes often come with warranties, such as the NHBC warranty, which provides protection against structural defects. Your solicitor will review the terms of these warranties to ensure they offer adequate protection.
The final stage of the process is completion. For new build homes, completion typically occurs 10 working days after the developer has completed the construction, and Building Control has signed off the property as structurally secure.
What searches are specific to new build homes?
Some common searches for new build homes include:
- Verifying planning and building regulations approvals.
- Ensuring the property has access to gas, electricity, water, and drainage.
- Identifying any restrictive covenants.
- Determining whether the property is leasehold or freehold.
- Conducting local authority searches.
- Reviewing the conditions of your mortgage offer.
How long do searches take when buying a new build?
The duration of searches when purchasing a new build varies but typically ranges from 1 to 3 weeks. This timeline can depend on factors such as the efficiency of local authorities in providing information and the complexity of the searches required.
Developers often aim to streamline this process to facilitate faster transactions, but delays can occur if additional information or clarifications are needed.
Overall, you should expect a reasonable timeframe for thorough searches to ensure all necessary checks are completed before proceeding with the purchase of a new build property.
Is conveyancing more complex on a new build?
Yes, conveyancing is generally more complex for a new build as the property is in the process of being built and a number of checks will need to be carried out by your solicitor to ensure the quality.
Some common issues include:
- The developers have not complied with planning regulations.
- NHBC inspections have not been arranged.
- The developers have failed to complete agreements for roads and sewers.
- The home has not been built in accordance with the original plans.
What fees do you pay when buying a new build?
When purchasing a new build property there are several fees that you may come across during the process.
Reservation Fee
When purchasing a new build property, you will need to pay a reservation fee typically from £100 to £2,000 in order to reserve the property for a set period of time.
Paying the fee typically reserves the property off the market for 28 days or alternatively agreed period giving you time to exchange contracts.
If you decide not to go ahead with the purchase you will lose the fee but if you do proceed, it will be taken off the purchase price when you complete the sale.
It is advisable to already have a mortgage in principle, before reserving a property if additional funding is required .
Deposit
You will need to pay a deposit before purchasing a property, the amount will depend on the property price, your mortgage offer and if you are using schemes such as Help to Buy.
On average a deposit is between 5-20% of the purchase price. (Most commonly 10%).
Obtaining a mortgage in principle from your lender can give you an idea of how much you can borrow.
Stamp Duty
Stamp Duty is a government tax on properties with a purchase value of £125,000 or more in England and Northern Ireland.
The amount of Stamp Duty you need to pay depends on the property price and whether you are a first time buyer.
Legal Fees
You will need to pay the legal fees of your solicitors for managing the new build conveyancing process on your behalf.
The cost will depend on how much the solicitors charges and how much involvement they have in the process. Your solicitors will be able to provide a breakdown of their charges.
Get in touch with our residential property team
If you’re looking to buy or sell a home, our experienced residential property team is on hand to support you through the entire process.
To discuss how we can help, please contact your local Kingsfords office in Ashford, Cranbrook or Hythe. Alternatively, you can send an enquiry and a member of our team will get back to you promptly.
Want to see how much your conveyancing might cost? You can get a competitive quote with no obligations.