New Build

A new build property is a brand new property that nobody has previously lived in. The property may already be built, in the process of being built, or an off-plan plot within a development. Once you reserve your property and pay the reservation fee you usually have 28 days within which to exchange contracts. If your property is not built you will exchange contracts with completion on notice. If your property is built and ready for occupation a fixed completion date can be agreed.

Once you have found the property you wish to purchase, you will need to pay your reservation fee to the developer. You then instruct New Homes Law to act on your behalf, to review our fee schedule, please click here.

Once the exchange has taken place, you are legally committed to purchase the property. If you have exchanged ‘on notice’, the purchase process will take longer to complete. Once the property construction has been completed, notice will be served by the Developer’s conveyancer to us and completion of your home purchase will take place within approximately 5-10 working days. On exchange of contracts, you will be given an anticipated completion date. Please be aware this date is not guaranteed and subject to change.

New Homes Law New Build Steps

Step 1

Receive instruction, identification and monies on account from client

Await contract papers from the Developer’s solicitor

Request proof of deposit funds from client

Apply for all required searches

Step 2

Prepare client contract report and send to client for review and signing

Answer any enquiries raised by the client

Step 3

Where the client is obtaining a mortgage a copy of their mortgage offer must be received at this point.

Prepare a mortgage report and send it to the client with the mortgage deed for signing

Step 4

Once we are in receipt of all signed documentation from client and their exchange deposit, we will request the client’s authority to exchange contracts either on notice, if handover has not taken place, or with a fixed completion date, if handover has taken place

Step 5

Once authority has been received from client we will exchange contracts with Devlopers solicitor. Client then becomes legally committed to their purchase and failure to complete their purchase could result in the loss of their exchange deposit together with them incurring additional interest bearing charges

Step 6

Inform the client that the exchange of contracts has taken place

Send lease or transfer to client for signing (At this point, contact from us will lessen until nearer the completion date, however we remain available to answer any question(s) raised)

Await notice of completion to arrive from Developer’s solicitor if a fixed completion date has not already been set

Step 7

Once a completion date has been set we will send the client a completion statement confirming the balance of funds required from them to complete

Request mortgage advance from lender for completion date
Carryout necessary pre-completion searches, i.e. bankruptcy, K16

Step 8

Once all funds have been received from the client and their mortgage lender, we will send the full completion funds to either the Developer’s solicitor

Once we have received confirmation from the Developer solicitors that the completion funds have been received, legal completion has taken place

The Client can then collect their keys at a time agreed with the Developer

Things to Consider

Preferred Conveyancers

You receive excellent customer service
You use a conveyancer who has full knowledge of new build transactions that the exchange deadlines are met.

A developer’s preferred list details conveyancers they are confident can do this

Purchasing ‘Off-Plan’

Each developer has their own conveyancer that deals with their involvement in the sale of a plot. We are listed as a preferred conveyancer as the developer/housing association wants to do their utmost to ensure. When you are purchasing a new build property, you may well end up purchasing ‘off-plan’. Purchasing a home in this way, means you will be purchasing a property that has not been built yet. Although this sounds quite risky, there are advantages to buying ‘off-plan’. You may find you can secure one of the best plots available in advance, be able to have a say on finishes and specifications of your home, as well as potentially receive incentives towards the purchase.

The downside of purchasing a property ‘off-plan’ is that there might be delays with the build and your home may take longer to complete than expected. With mortgage offers being valid for fixed periods of time, you may need to reapply and secure a new mortgage during the purchase process.

New Build Lease

If you are buying a flat, you will be buying a leasehold property with the right to occupy and use your property for a set period of time- referred to as “the term”.

The lease is a legally binding contract between you, the leaseholder, and the Landlord. As with most residential leases, the lease covers the rights and responsibilities of the Landlord, you the leaseholder, what you can and can’t do.

Stamp Duty Land Tax (SDLT)

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland. The tax is different if the property or land is in Scotland or Wales. Please refer to the government website for guidance on the same, as this is always subject to change: – www.gov.uk/stamp-duty-land-tax

You pay Stamp duty when purchasing a freehold property, a new or existing leasehold, a shared ownership property, a transfer of property in exchange for a payment. If your stamp duty is for nil consideration, a stamp duty return form must still be submitted to the HMRC. If you would like to calculate what your stamp duty will be, please refer to the following: – Stamp Duty Land Tax: Residential property rates – GOV.UK