Buying a
property is an exciting time but it’s important to choose the right home for
you. New builds are often a great option for first time buyers or anyone with a
growing family, but there are some important factors to consider.
There are
many benefits to buying a new build home but there can also be common problems
that buyers aren’t aware of. If you’re wondering whether a new build is right
for you, see below for our handy guide.
What is a new build property?
If a
property is brand new and has never been lived in, it’s classed as a new build.
Some modern houses may look brand new, but if they’ve had a previous owner or
tenant then they’re technically not a new build.
Some lenders
have different definitions of what’s classed as a new build home, but it’s
usually a property that’s been built within the last two years. Some people buy
a new build home ‘off-plan’; this means buying a house that hasn’t actually
been built yet. This is often considered riskier as you’re making a decision
based on a show home or proposed images in a brochure.
The benefits of new builds
There are
many advantages to buying a new build property and they’re appealing to buyers
for a number of reasons, including:
Affordable
New build
houses are often more affordable than period properties. You also only need a
5% deposit for new builds under a certain price threshold; one reason why
they’re so appealing to first time buyers. Many people can also afford a larger
property for less money thanks to the Help to Buy Scheme.
Energy efficient
Old houses
can be draughty and poorly insulated but new builds are often far more energy
efficient. Newly built properties usually include energy-efficient features
such as double glazing and extra roof insulation. This makes the property more
environmentally friendly and you’re likely to save money on your energy bills.
Customisable
If you buy
off-plan, you might have the option to customise certain features and fittings
to suit your tastes. Many buyers like the thought of a home that’s built to
their requirements and you can ensure it has all the features you need.
Guarantees
Many new
properties come with a guarantee, such as the National House Building Council’s
10 year warranty. Other companies may also provide warranties or insurance for
new build properties, such as BLP’s housing warranty insurance.
Less maintenance
Potential
buyers might fall in love with an old property, only to find that it requires
thousands of pounds worth of work. Common maintenance for older properties
includes draught proofing, adding insulation, foundation repairs and damp
proofing. By contrast, new builds often require far less maintenance and repair
costs should be minimal in the first few years.
You’re the first person to live there!
Many buyers
love the fact that they’ll be the first people to live in the property. It
means you can really put your stamp on the place and mould it into a home to
suit you. There’s no need to worry about the previous owners’ taste in
wallpaper or how they’ve divided the layout; the property is yours to decorate
as you wish.
What’s included in a new build property?
New build
properties often include many fixtures and fittings that you’d otherwise have
to buy separately. The details of what’s included will vary from developer to
developer but you could bag washing machines, dishwashers, luxury wooden
flooring or furniture.
As mentioned
above, new builds are also more energy efficient, so expect double or even
triple-glazed windows, insulated roofs and energy efficient heating. Be wary of
the upsell however; developers may try to sell you additional items (like extra
furniture) as part of the deal. It could be much cheaper to source these
yourself, so have a clear list of what you actually need before agreeing to any
extras.
Potential problems
There are
many benefits to buying a new build but it’s important to be aware of the
potential problems too. A new build doesn’t necessarily mean no issues and some
estimates suggest that new builds can have between 50 and 150 defects.
Arranging a professional building survey is the best way to protect your
investment and spot any major problems before signing a contract.
A full
building survey will examine all internal and external areas of a property,
including the plumbing, windows and doors, roof area and main walls. It will
also look at its general thermal performance, sound insulation, fixtures and
fittings and potential issues like damp or structural problems.
Other
potential problems with new builds include:
Hidden costs
Always check
the small print of your contract for any hidden costs or fees included with the
new build. Some properties charge a service fee for maintenance of shared areas
like a garden or communal pathway. If you’re buying a new leasehold flat,
you’ll also have to pay a service charge for the management of the building.
It’s also a
good idea to avoid leasehold new buildings in general if you can help it.
Leasehold means that you don’t own the land your property is on and you’ll need
to pay rising ground rent to the freeholder.
Unfinished buildings
This is a
risk you take if you choose to buy an off-plan new build. Construction projects
can overrun and you may find yourself paying for a property that hasn’t been
finished yet. If you’re one of the first to buy a property on a new development
site, you could be moving into a house surrounded by building work.
The buying process
If you’ve
viewed a show home or development and have decided you want to go ahead, you
can now start the buying process. You’ll need to put in your offer (don’t be
afraid to haggle) and then pay a reservation fee. This is usually around £1,000
which is then deducted from the purchase price when you complete.
It’s always
worth appointing a solicitor or conveyancer to help you with the legal and
financial side of the process. Look for an agency or individual with experience
in dealing with new builds, especially if you’re buying off-plan. They’ll also
be able to liaise with developers to work out when you’ll receive your keys.
Waiting to move in
Contracts
are often exchanged months before you move in if you’re buying a new build.
You’ll need to pay your deposit at this point (via the conveyancer) and you
should receive a short-stop date and a long-stop date. The short-stop date is
when the developer expects to finish the work and the long-stop date is when
the work has
to be finished by.
Long-stop
dates are designed to stop you losing your mortgage offer, as some lenders have
stricter limits for how much they’ll loan for a new build property. A third
party mortgage broker will be able to advise you on the best lender and deal to
suit you.
Professional building surveys from the experts
at Simon Levy
If you’re
thinking about buying a new build property, get in touch with the experts at
Simon Levy. We’re proud to offer full structural building
surveys
to assess
the property before you go ahead with the purchase. We understand what a
significant investment property is, which is why we’ll use our decades of
experience to make sure everything is up to scratch.
Our full
building surveys include a detailed assessment of external and internal
plumbing, electrics, ventilation, thermal performance, insulation, damp
penetration, roof areas, floors, partitions and more. A professional building
survey can save you thousands in potential repairs or renovations, so give us a
call today or contact us
online to find out more.
