Thursday, 12 October 2017

Buying off-plan: A quick guide

Have you ever driven around local housing developments and seen queues of people lining up round the block waiting for a show home to open?

It’s becoming an increasingly common sight. More and more of us are looking at buying our next new home 'off-plan' to beat price rises and increasing mortgage costs.

The idea is to get everything in place and fixed so your contract is future-proofed.

Buying off plan is a great way to get a good deal on your new home. Government schemes like Help to Buy are only available on new builds. But don’t get caught out. Here a few steps to consider:

  • Research properties and the developer carefully. Check online feedback from previous developments and make sure images in marketing materials match up with developments already built.
  • When you have found your development speak to your mortgage advisor. Many mortgage offers are only valid for six months. If your build takes longer to complete you may have to reapply for your mortgage.
  • Reserve your home and pay the reservation fee.
  • Appoint a conveyancer or solicitor to deal with your side of the transactions. Sometimes, a developer can recommend one for you and may offer you incentives to use them.
  • Make sure your property solicitor keeps tabs on progress and the development is proceeding on schedule.
  • Arrange your mortgage with your lender. A surveyor will be appointed to value your plot based on the plans and the development specifications.
  • Exchange contracts and pay your deposit.
  • When the property is nearing completion get a snagging survey done.

Reserving off plan can net you some good deals. For example, we’re offering £500 towards legal fees at our Bourne Green development for an early bird reservation.

Remember, it's the early bird that gets the .... er, worm ... doesn't sound much of an incentive, does it? £500 off your fees, though, must be worth considering.

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