A new build property is a brand new property that nobody has previously lived in. The property may be already 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.
Things to Consider
Preferred Conveyancers
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:
- you receive excellent customer service
- you use a conveyancer that 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 ensWhen 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 receiving 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