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Things to Look out for when Buying a New Build Property
A New Build Property is a property that has never been lived in before and has been recently constructed. Buying a New Build property is different from buying an older property, so it is important that you know what to look out for. Here at Johnson Astills, we are here to make sure our clients are fully equipped to make informed decisions.
If you are a first-time buyer, buying a new build property will mean that you are not in a chain, so you will not be waiting on anyone within a chain and there is no pressure from parties to exchange and complete.
It is important to be aware that building works may not have been completed in your new home upon exchange of contracts. Therefore, you must keep in mind the duration of your mortgage offer and the fact that you will be legally bound to a property that you may not have not seen physically before. Sometimes there can also be delays in the completion of works, which will affect your move in date.
Lenders are often tentative when providing mortgages for new build properties, as new build properties are seen as high risk. This is because new build properties value in the first couple of years do not appreciate as quickly as older properties. Often this means that buyers will generally have a larger deposit amount.
However, there are quite a few financial schemes to help individuals get started on the property ladder and quite a few of them are exclusive to new build properties. Please see the list below:
- Help to Buy Equity Loan
- Shared Ownership Schemes
- 95% Mortgages
New Build homes are often installed with up-to-date energy efficient appliances, which makes them cheaper to run than older properties, and less likely to need any kind of major renovation. They also come with a new homes warranty / professional architects certificate that covers structural defects on the property. Some developers provide incentives to buyers such as being able to choose the fixtures and fittings on the property, cashback and many more.
The issue of snagging is also widely common in new build homes, and it is important to be aware of this when deciding to purchase a new build property. Snagging surveys are often available for buyers. As the property will be brand new it may take a longer time to organise getting your post as well as installing broadband and Wi-Fi. Also, in comparison to older properties, new build properties tend to have smaller rooms.
Our Property Team at Johnson Astills can assist you if you are looking to sell or purchase a property. Please call us on 0116 2554855.