The legalities of buying a new-build home can be more complicated than other types of conveyancing with stand-alone issues such as planning, problems with NHBC inspections and with new build development infrastructure and services. The advantages of a property in split-new condition are clear. However, there are also well-documented downsides, such as lengthy snagging lists and an almost immediate depreciation in value.
Conveyancing guidelines
a) Developers sell off development plans for cash flow purposes, so a purchaser is buying on the basis of plans, architects’ drawings and visiting a show home. It’s all very different to the traditional model of house viewing and buying.
b) A reservation fee will be payable before an offer is accepted and is non-returnable.
c) Developers then dictate the purchase timescale, with deadlines built into the contract for payment of a deposit and exchange.
d) After the house has been built and signed off as fit for occupation by the local authority, completion takes place. Pre-completion final inspections by the local authority are scheduled, and buyers and their advisors can create a snagging list for remedy by the developers.
Other issues
Your solicitor should check that the property has been built in accordance with the planning permission and fully advise you on any adverse title conditions or covenants that might preclude making future alterations to the property.
Under the London Help to Buy scheme, purchasers buying a new-build home with or without a homebuyers report London (Greater) can apply for an equity loan of 40% of the property’s value. In all parts of the country, new builds do not generally require a homebuyers report London being no exception. If, however, under some circumstances, lenders do require at least a snagging survey, it can be advisable to instruct a homebuyers report London solicitors can offer competitive quotes for both surveys and legal costs to get you started.
Summary
New builds do offer security of mind for the cautious, with the 10-year NHBC Guarantee and warranties on all included appliances being of real value. In addition, the developers might allow the purchaser to bespoke the decoration scheme and minor internal spec of the property. Also, in an increasingly energy-conscious age, the property should not fall foul of local authority energy ratings and knock-on effects both in terms of legislation compliance and, of more immediate importance, the purchaser’s pocket.