What you need to know when buying a new-build property

What is an off-plan property?
Buying off-plan means you agree to buy a property before the developer has finished building it; sometimes before construction has even begun. You are buying the home based on the developer’s architectural plans. 

What are the advantages? 

1. No upward chain: As you are buying the property from the developer, there will be no upward chain of sellers or buyers that could result in delays to the completion date.
   
2. Financial Incentives: Some developers will offer discounts of up to 5%, and there may also be government support for new-build homes. However, you should check that these are available with your chosen developer.
   
3. Guarantees: New-build homes usually come with a 10-year warranty for any structural defects.
   
4. Personalisation: Some developers will offer you the opportunity to select fixtures and fittings tailored to your style. Although, depending on the materials picked, this could involve an additional cost. 

What are the disadvantages? 

1. Obtaining a mortgage: Many lenders are reluctant to offer finance or will offer a lower amount for new-builds. You may need to speak to a mortgage broker who specialises in new-builds.
   
2. Mortgage offer duration: Typically, a mortgage offer will be valid for six months. Due to construction delays, this offer may expire before you are able to move in. When applying for a new mortgage offer, you may obtain a less favourable product.
   
3. Deposit: If your financial position changes following exchange and you are unable to pay the balance of the property, there is the risk that you could lose your deposit.
   
4. Snagging: There may be minor faults at the property that need to be rectified.
   
5. Delays: There may be delays with the construction preventing you from moving into the property until a later date. Also remember that once you move in, construction may be ongoing on neighbouring plots, leading to disruption. 

Holly Jones

Buying a new-build retirement flat

Buyers considering a new-build retirement flat may be attracted to the prospect of not having to undertake any redecoration work, or by the sense of community offered by having neighbours of a similar age, moving into a new development at the same time. 

Developments sometimes also include attractive communal leisure areas, such as swimming pools or gyms. Some buyers may find that, considering the cost of long-term care fees, a retirement flat may even offer the prospect of living independently for longer. 

Bear in mind that retirement properties are usually leasehold, which means that you are buying the right to live there for the length of the lease. The costs of living in a retirement flat may be higher than a normal flat. There will usually be regular service fees and, on selling, the flat may not hold its value as well as other properties, and exit fees may apply. 

If you are looking at buying a new-build property and require assistance please do contact a member of our property team who will be able to assist you.

Article written by: Holly Jones
Paralegal
Telephone: 01622 698065
hollyjones@​wmlaw.​uk