With the number of homes increasing yearly, most individuals hope to build a brand new home in the future. Here are some of the factors to consider when purchasing a new build property.
Understand what you are buying
Sometimes when you agree to buy a new home, it may not be complete especially if you are buying off plan that does not exist at all. This will make you rely heavily on developer specifications and plans. The developers may display designs that shows what a completed property should look like. However, this can be quite different in terms of size, plot location and even the finishing as compared to the house you eventually move into.
It is important to be sure about the specifications that are required. You need to access the property size, location, and dimensions. This will help you to understand what the developer is including. If you have any doubt, you can speak to a lawyer that will assist with clarifications.
Consider the development as a whole
On a new development, the facilities and the overall property mix can be considered and it should be there when it is completed. You need to request for the developer’s timetable for finishing the estate. Sometimes, your property can be ready even before the entire development is completed especially when there are various project phases.
Your lawyer should be available to check compliance with building regulations as some issues can remain outstanding when you finally complete your purchase. Furthermore, some issues can arise with new developments and they include planning conditions that prevent any property from being occupied until the entire estate road Is completed.
Adequate provision for roads drains and shared facilities should be checked by your lawyer and ensure that it will become publicly maintainable. In some scenarios, individual property owners have to contribute to the cost of shared facilities through a particular service charge especially when there are communal facilities. The service charge should be clearly stated by the developer and everything should be covered in the documentation.
Check whether the property is freehold or leasehold
Over the years, a high percentage of new build properties are usually leaseholds because it is an effective means of dealing with responsibility for a shared structure. However, a certain number of new build houses are also leaseholds especially when there are shared facilities.
If your new home is a leasehold, you will be required to pay ground rent as a service charge. You will also require the consent of your landlord or management company before you can sublet the property. This will attract additional cost that can affect the use of your property and you can discuss the potential implications with your lawyer before committing yourself.
Finally, ensure that you do not delay the purchase with your lawyer in order to check that the plot conforms with the Land Registry’s records.