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BLB’s Buying a new build home
An off-plan property is one sold before construction is finished or has even begun. Buyers purchase based on the architectural designs and plans rather than viewing a completed building. Buying a new build home is likely an attractive prospect for those looking to own a contemporary home with modern design and energy efficiency.
See also: New build conveyancing: a guide |
Buying a new build home: Potential advantages of buying off-plan
Personalisation
A significant benefit of buying a property off-plan is the opportunity for personalisation. The degree of personalisation allowed depends on the developer. Typically, it includes selecting from various fixtures and fittings, flooring type and colour scheme. But it may also extend to your input on the property’s room layout. However, it’s crucial to remember that the purchase price reflects the degree of customisation.
Lower cost
Buying a new build property is often less expensive than buying an existing home. This is because developers may offer various discounts and incentives to those committing to purchase before construction is finished. However, it’s always important to remember that you are committed to buying at the agreed price. In a strong property market, the property’s value can increase before you move in. Conversely, there is always the risk of the property declining in value before completion.
Energy efficiency
New build properties must adhere to current energy efficiency regulations. As such, they incorporate many energy-saving features like double glazing, insulation, and possibly even solar panels. Although this translates into lower energy bills, the initial cost of installing these technologies is factored into the purchase price.
Lower maintenance costs
New build properties feature modern building methods and materials. As a result, they typically demand less upkeep than older homes, resulting in savings on maintenance expenses.
Warranty and guarantees
Typically, new build properties come with warranties and guarantees, reassuring buyers. For instance, developers provide a 10-year National House Building Council guarantee (NHBC) – or similar – on their new homes. However, buyers must review the specific terms and conditions of these warranties and guarantees carefully to ensure they provide the expected level of protection.
First occupant
Buying off-plan means you will be the property’s first occupant. Whilst this should mean not worrying about hidden issues or problems caused by your predecessor, it does not rule out teething problems.
Quality of fixtures and fittings
When buying a new build property, you might anticipate high-quality fixtures and fittings. However, this is not guaranteed, as some developers opt for lower-quality materials to reduce construction costs. Therefore, it’s crucial to consider the specifications carefully and the developer’s reputation.
Buying a new build home: Other issues
There are a host of considerations when buying a new build property. Instructing us at an early stage – even before you have paid the reservation fee – means we can advise you on the process and the questions you should ask the developer. Just some of the considerations are:
- What happens to my deposit if the developer goes bankrupt?
- What are the consequences for my mortgage offer if the property’s value decreases before completion?
- Are you buying the freehold?
- For leasehold property, what are the lease length, the service charges, and restrictive covenants?
- Are there estate management fees, and if so, what do they cover?
- Are the property’s detailed specifications and plans available for review?
- What is/is not included in the price?
- At what stage can I view the property before completion?
- What is the expected completion date?