Buying a new build property
Rachael Holliday gives a brief breakdown of the main advantages and disadvantages of buying a new build property.
New build properties are appealing to buyers as they tend to be more energy efficient, you get to choose your own fixtures and fittings and they are chain-free.
However, as with buying any property there are pros and cons you should consider:
Buying a new build property - the advantages
- Many developers offer financial incentives such as contributing part of the deposit or paying your stamp duty. You may also get free items such as carpets and curtains.
- You can usually select your own fixtures and fittings to finish the property finish to your taste.
- New properties come with the benefit of a guarantee which usually lasts for a period of 10 years and covers any issues or problems resulting from the build.
- As properties are constructed to a certain standard, repairs and redecoration costs should be minimal for the first few years.
- Building regulations dictate that certain standards must be met regarding energy efficiency. This includes double glazing, insulation throughout the walls roof and floors, energy efficient boilers and heating systems. This means homeowners should enjoy lower running costs and energy bills.
- As the property is brand new there is no chain to worry about.
- You may be able to obtain a 20% loan towards the purchase price under the Government’s Help To Buy Scheme.
Buying a new build property - the drawbacks
- When you buy a new build property you usually buy “off plan” before the development has been completed. This means that you do not have a fixed completion date and the builder will serve you with a notice 2 weeks before the property is complete. Without a fixed completion date, delays can occur and your expected completion date may be later than you anticipated.
- Completion of a new build purchase can take place months after contracts are exchanged. A mortgage offer will typically be valid for a maximum of 6 months and there is the risk that your mortgage offer will expire or be withdrawn before completion.
- Buying off-plan means your property may not turn out as expected. Make sure that you are aware of the plot location, size, and dimensions of the property and everything that will be included in the price.
For more information on new build properties contact Rachael Holliday here.
About the author
Rachael is a Chartered Legal Executive in the residential conveyancing team.
Published: Monday 19th June 2017
Categorised: Residential Conveyancing