Buying a new build home? There are many things to consider beforehand, including common problems that many home buyers overlook. With this in mind, here are some tips for buying a new build home.
The benefits of buying a new build home
There are many reasons why you would feel compelled to buy a new home. For some, the idea of being the first to live in a property is quite attractive. It will also likely mean you will save money on repairs in the first few years due to a smaller chance of any expensive damages.
When buying in advance, buyers can often select features and fittings to suit their needs. These new properties also often come with guarantees, such as housing warranty insurance. And finally, if the property is built to the correct standard, homeowners should expect to see lower energy bills.
The downsides to new build homes
Though this may all seem like a dream, there are downsides. For one, you may find yourself dealing with poor customer service from the developers. This is because they tend to not compete on quality and after-sales service. It would be best to get to know the developers in the area and see what people are saying about them. If the development has been partially completed, it could be worth asking the neighbours how they found the buying process. Finally, be sure to visit the developer’s website and maybe visit the site you are interested in to see if it’s right for you.
Another issue you might face is premium pricing. Even in a rising property market, the value for your new build may depreciate if you have to sell within a year or two. We suggest comparing the property with similar properties being resold for their value, size and even their rental value in the area. It would also be worth shopping around for the best deals and incentives that might save you money in other areas of the buying process.
Leasehold vs freehold
It is important to know whether your new build home is freehold or leasehold, as leases for new build properties are usually long term, from 90 years onwards. Leasehold properties often come with specific conditions such as restricted consent to alterations to the property, sub-letting and owning pets. Leaseholders also have to pay for things such as maintenance or annual ground rent. Though the latter may be nominal, it could escalate quickly, making it almost impossible for you to sell on later.
New build flats must be bought on a leasehold basis. You solicitor can talk you through the terms of the lease, the restrictions and what charges may apply now and in the future.
If you are buying “off-plan” before the development is finished, it would be worth getting the builder to agree to a “long-stop” completion date. This means they will be liable to pay compensation if the property is not completed on time.
Workmanship and Finish
Warranties will likely not cover workmanship and quality finishes. Therefore, you must make sure you are happy during each stage of the build. By the time you instruct your solicitors, you should have seen copies of the plans and specifications of the finished product. The more details you see, the better.
If buying off-plan, do not rely solely on the deals offered by the developers and visit a show home. These do not reflect a proper specification.
Find the best solicitor for your new build property
If you are interested in buying a new build property but are worried about the processes involved, the right solicitor can make things easier. For conveyancing services in the Manchester area, get in touch with Betesh Middleton Law.