New Build Property Conveyancing Solicitors.

What are the steps when buying a new build home?

Unlike other conveyancing matters, the steps taken for new build properties are different. Once you have an offer accepted and paid the reserve on a property, you will need to appoint a legal professional. Your solicitor or conveyancer will follow these steps:

1. Searches

Your solicitor or conveyancer will conduct searches on the property and the surrounding land. This will include checking that drains and roads are correct, planning permission has been granted and establishing if the property will be freehold or leasehold.

You may also opt to take out search insurance, which, if the lender accepts, can make for a faster purchase and speed up the process in line with the developers’ requirements.

2. Deposit

You will now need to pay the deposit for the property. This amount will have been established between the developer and you when making an offer on the property.

3. Exchange of contracts

Once the searches are complete and your solicitor is satisfied, you will proceed to exchange contracts. For new build purchases, developers may request an earlier contract exchange (typically within 28 days); otherwise, the reservation fee and the property may be at risk.

If the property is not built at the time when the contracts are exchanged, then completion will be on a 10 working day notice and this may need to be factored into your lenders, mortgage offers and sellers if you are part of a chain.

4. Snagging survey

A snagging survey will be conducted, led by a surveyor who will inspect the property to ensure it is in order and that there are no defects or issues.

This survey should be completed as soon as the property is built and before you move in, so that the developer can address any issues that may arise. If this is not possible until after completion, it is recommended that you complete this task as soon as possible; some developers will offer a two-year warranty period to address any issues that may arise.

You will need to appoint a surveyor to conduct your snagging survey; your solicitor or conveyancer may be able to recommend a suitable professional.

5. Completion

Once the house is built and everything has been signed off, your conveyancer or solicitor will transfer your funds to the developer. Once the developer has received these funds and confirmed it to your solicitor, you will be able to pick up the keys and move into your new home.

What are the differences with new build conveyancing?

Buying a new build property can sometimes bring additional risk. This may include issues such as non-compliance with planning regulations, homes not being built in accordance with the original plans, or developers not completing agreements for roads and sewers.

This should not put you off, but it means you should instruct a new build conveyancer or solicitor who is experienced in dealing specifically with new build properties.

Doing so will make sure that issues are identified and dealt with, and also ensure that the contract is in your favour, that your deposit is protected, and that you have a long-stop completion date in place (the date by when the developer must agree to have finished the build and is ready to hand over the keys to the buyer).

Here's some more helpful information on why you should use a specialist new build conveyancer.

Shared ownership in new build properties 

When purchasing a new build home, shared ownership is sometimes offered as an alternative method of property ownership. Shared ownership is a government-backed scheme that can allow home buyers to buy a percentage share of a property, then rent the remainder of the property from a housing association.

Over time, you will be able to go through a process known as staircasing, in which you buy and increase the number of shares you hold within the property, reducing the rent charge and potentially leading to full ownership of the home.

Purchasing through the shared ownership scheme can add some extra complexity to the purchasing process, which is why it is essential to speak with a shared ownership solicitor who has experience in handling these types of purchases.

At Holden Smith, our team has a wide range of experience in guiding buyers who are using the shared ownership scheme. We can also assist and direct those who are looking to increase their shares in a home through the staircasing method.

Managing your mortgage offer

When purchasing a home with a mortgage, your mortgage lender will typically provide you with a mortgage offer that is valid for six months; however, some lenders may offer shorter terms. With the potential risk that a new build property may be delayed due to construction issues, this can result in your mortgage offer expiring and you potentially having to reapply for a new mortgage.

If you think that your mortgage offer may expire whilst purchasing a new build home, it is recommended that you ask your solicitor to place a long-stop completion date into the agreement. This can allow you, as the buyer, to exit the purchase if there are delays.