Properties that have been newly built or refurbished within the last two years and have not been sold would be classified as ‘New Build’ properties. These properties can also be sold ‘off-plan’ which means that the home buyer has committed to buying the property before or during the construction of the property.
When buying a new build property, it is advisable to use a mortgage broker and a lender that deals with new build purchases on a regular basis. Many new build developments require you to exchange contracts within 21 or 28 days. If you don’t, you risk losing the property or worst still, the deposit you paid the builder.
If you are buying an apartment, some lenders have restrictions on number of floors in the development and are not keen to lend if the property is above a commercial premise.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Yes, there are often incentives available for first-time buyers purchasing new build properties. These incentives can include help with covering closing costs, discounts on the purchase price, or additional features or upgrades to the property. Government schemes like Help to Buy may also provide financial assistance or favorable terms for eligible first-time buyers.
While it's possible to negotiate the price of a new build property, the extent to which negotiation is successful can vary. Developers may have less flexibility in adjusting prices compared to individual sellers of existing properties. However, buyers can still explore opportunities to negotiate on aspects like upgrades, incentives, or additional features to enhance the overall value of the purchase.
The timeline for completing the purchase of a new build property can vary depending on factors such as the construction progress, the developer's processes, and any external factors like legal or financial arrangements. On average, the process can take several months from the initial reservation or agreement to purchase to the final completion of the sale. However, this timeline can be subject to change based on individual circumstances and any unforeseen delays.
Yes, there are specific regulations and guidelines governing new build mortgages in the UK. These regulations aim to ensure transparency, fairness, and consumer protection in the mortgage market. Lenders must adhere to regulatory requirements set forth by the Financial Conduct Authority (FCA) and other relevant authorities, which govern aspects like lending practices, affordability assessments, and disclosure of terms and conditions. Additionally, government schemes may have their own eligibility criteria and regulations for borrowers seeking new build mortgages.
Your home may be repossessed if you do not keep up repayments on your mortgage.
