1. Pick the right home for you

Developers and Development Sites vary widely as to how they work, what they offer and the development schemes available.

Before committing to buying a new build property you should research the developer, visit the site and possible speak to some of the residents who have already moved in to their new homes. If you are looking to relocate to a new area, investigate the surrounding area – transport links, schools, amenities and all other local facilities will vary between locations.

The sites sales office should have a range of literature available to you to help you in your decision making process.

2. Finance

If you need mortgage finance to be able to purchase the Property, make sure you consult a mortgage advisor before you get too involved with viewing properties, so as to be sure what your purchase price budget is.  A mortgage advisor will have an in-depth knowledge of the mortgage market as well as any government schemes intended to help homebuyers with a new build property purchase.  You may also want to have a mortgage agreement in principle, so that before you move to the next step you are confident that you can finance your new property purchase. You will need to finalise your mortgage and make a full application after you have successfully reserved your new home.

3. Reserve your new home

Once you have found a property that you want to purchase and have finances in place, you will be able to reserve your new property with the developer and pay the reservation fee.

The reservation fee will be anywhere between £500 and £2000 and will secure the property for you for 28 days. During the 28 day reservation period you will need to progress to being able to exchange contracts. The reservation fee is deducted from the final price when your purchase completes.

4. Appoint your Property Lawyer

The Developer may encourage you to use a Lawyer from their panel of preferred Lawyers – you are not obliged to do so and can choose your own if you wish to.

We would advise that when looking for legal representation that you look for a Law Firm who have a specialist new homes department, such as ours, as we are familiar with the deadlines involved and know how to deal with the extensive development documentation supplied.

5. Pay the deposit & exchange contracts

The deposit payable on exchange of contracts for any property purchase is 10% of the Purchase Price. The deposit will be requested by and paid to your lawyer once all legalities are satisfied (i.e. searches and mortgage offer received, enquiries replied to and all signed documents being in place). The deposit will be paid to the Developer on exchange of contracts, or may be held by the Developers Lawyers where the new home warranty does not cover insolvency of the Developer in order to protect the deposit paid.

6. Make a snagging list

Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.

If you’re thinking of purchasing a new build property and would like some advice and assistance, please do not hesitate to contact our New Homes team on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk.

There are advantages and disadvantages when it comes to deciding between buying a new build or existing property. You will need to weigh up what factors are most important to you from your list of “must-have” features and which type of property ticks the most boxes for you.

To help you in making your decision, we have put together some pros and cons for you for both new build properties and existing “second-hand” properties.

New Build Properties – Pros

• Incentives – Some Developers will offer “extras” to secure a sale. Incentives are split between financial incentives and non-financial incentives. Financial Incentives could include stamp duty paid, a contribution towards legal fees or even estate agents fees paid if you have a related sale. Non-financial incentives could include carpets and flooring provided, or your kitchen white goods being provided at no extra cost, or even an upgrade to the standard kitchen or bathroom suite installed. The different incentive packages that a Developer is able to offer are often broad.
• Warranties – a new homes warranty will be available on most new build properties, which you don’t always get with a second hand property. New home warranties are designed to offer peace of mind that any defects will be put right and typically last 10 years.
• No chain – You won’t have a chain of buyers above you, which can often take away one of the biggest stresses of buying a home.
• Blank Canvas – a newly built property is a blank canvas with fresh paintwork, tiling, kitchen and bathroom. There should be little that you need to do before you can unpack and enjoy your new home.
• Design you own home – where you buy a property “off-plan” you will be able to pick the Plot that you wish to purchase based upon the design and specification of the property and may also be able to choose kitchen and bathroom layout and pick the fittings from a range of options.
• Low bills – all new builds have to comply with the latest building regulation standards, meaning that they are often more energy efficient than older properties.
• Modern living – Many new builds are built to a high specification which will include the latest technology.

New Build Properties – Cons

• Delays – not everything runs smoothly on a new build property and there can be delays outside of everyone’s control which can cause added stress, increase costs and also prove to be inconvenient where you are trying to plan your move around work, schooling and holidays.
• Snagging – there is often bad publicity in regards to poor quality new build homes. Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.
• Space – new build properties can often be less spacious than an older property due to the number of properties built on the site. This can often affect storage space within a property, so ensure that your furniture will fit and that you can get your car into the garage/on the driveway.

Second Hand Properties – Pros

• Character – there are plenty of older properties with features such as open fires, stained glass windows, exposed beams, sash windows which all add character to a property. These features often make us fall in love with a new property on an initial viewing.
• What you see is what you get – when you buy a new build property off plan it is often very hard to visualise what the property will look like and how it will feel to live in, but with an existing property you will be able to physically walk around and view the Property and see everything that you will be getting. A surveyor will also be able to attend to carry out a full inspection which will tell you everything you need to know about what you are buying.
• Community – an existing property may be in the heart of an established community, with pubs and restaurants close by and neighbours who have lived in the area for many years who will be able to give you historic background to the local area.
• Space – older properties are generally more spacious with bigger gardens.
• Potential for Alterations – whilst an existing home may not be “perfect” and may need some modernisation and alterations, you have some potential to put your own stamp on it and the ability to increase the value of the Property.

Second Hand Properties – Cons

• Chains – when you buy a second hand property it is likely that the current owner will also be looking to move to a new house, which will create a chain. Where you have a chain the wants and needs of all parties will need to be considered and the more parties involved the longer it can take for everyone to agree on timescales, which can make the move more stressful.
• Energy Efficiency – older properties are less likely to be as energy efficient as newly built properties. This could mean that your energy bills are higher with an older property.
• Maintenance costs – unlike a new build property you can expect an older property to need maintenance. Sometimes maintenance works will be required as soon as you move in.
• Renovations – you may want to carry out renovations and redecorate as soon as you move in, so you will need to budget for these extra costs.

The decision to buy a new build against an existing “second-hand” property will ultimately come down to personal preference. There is no right or wrong choice. Make sure you have all of the information you need before you exchange contracts and that you are buying the home that gives you what you need.

For advice in purchasing a new home, for new builds call our New Homes Teams on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk or for second hand properties, contact our Conveyancing Teams on 01604 828282 / 01908 660966 or email conveyancing@franklins-sols.co.uk.

Buying a new build home is a very exciting time, but can also be very daunting too, particularly given the timescales involved and the mountain of paperwork that comes as part of the purchase process.  It is essential that you seek expert help and advice to make your purchase as smooth and stress-free as possible. To help you, here are a few key things to consider to ensure that you get expert help and advice:

Legal Matters

Most Developers will have Law Firms that they recommend, although you do not have to use the “preferred” Lawyer recommendation. We would advise that when looking for legal representation that you look for a Law Firm who have a specialist new homes department, such as ours, as we are familiar with the deadlines involved and know how to deal with the extensive development documentation supplied.

Financial Matters

Again, most Developers will have Mortgage Advisors/Financial Advisors that they recommend, although you do not have to use the “preferred” advisor, but it may be beneficial to do so, as they will know what additional information is required to support a new build mortgage application.

Stamp Duty

For information on Stamp Duty and the latest rates to help you budget for the costs of your purchase look at: www.gov.uk/stamp-duty-land-tax-rates. Even if your purchase does not attract a payment, it will still be necessary for a return to be lodged with HMRC on completion of the purchase – your Lawyer will attend to this on your behalf.

Arranging a Survey

Even through the Property you are purchasing may be newly built, you may also want to have your own survey carried out. Where you are purchasing with a mortgage, the mortgage lender will carry out their own valuation for lending purposes only – the lender valuation is not intended to be relied upon by any third party and is not a thorough survey of the Property. In addition, your own survey will look at the surrounding area in the vicinity of the Property, not just the Property itself. To find a surveyor in the area where your new property is, please go to www.ricsfirms.com and www.rics.org/usefulguides.

Buying a Leasehold Property

Your Lawyer will provide you with a full report and advice in regards to the Lease relating to your specific property and will be able to answer any questions you have. If you are seeking more general information before deciding whether to purchase a Leasehold Property, The Leasehold Advisory Service is government funded to provide free advice on the law affecting residential leasehold property – www.lease-advice.org

For help and advice in purchasing a new build property, call our New Homes Teams on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk.

With all this uncertainty, the biggest question facing our industry is ‘How will this affect my house move’. We want to assure all of our clients that from our side it is ‘business as usual’ and we are still continuing to act in your best interest and get you moved as smoothly as possible.

There are, however, several factors which may have a knock on effect on timescales. Sadly, due to the Coronavirus, many people have had to self-isolate and work from home. This will include conveyancers and employees of other industries who we work alongside during the conveyancing process such as banks, housing associations, local authorities, land registry etc.

There will be a period of adjustment and during this time of upheaval if you are moving it is important not to panic but also, where possible, to be flexible with your own timescales for moving as your matter may be delayed.

Completion dates may also be affected as those who have to self-isolate will not be able to move. If contracts have already exchanged the date may have to be re-negotiated to a date which is better suited.

If you are concerned about your mortgage offer expiring speak with your lender about obtaining an extension. We will assist you with this where we can.

For the protection of our clients and staff at this time we are not seeing clients in our offices. If however it is urgent and you need to come in please call your conveyancer in the first instance.

We have made provisions for all of our staff to work remotely if it does reach that stage. We are taking Government & Law Society advice and are monitoring the situation daily. We are however conducting meetings through the phone, video conferencing, Microsoft Teams and the like.

Be safe and remember to wash those hands.

In this new world of uncertainty we want to continue working to make your conveyancing transaction as stress free as possible. If you are affected by the Coronavirus and have any questions about this then please speak with your conveyancer by calling 01908 660966 / 01604 828282 or by email.

1. Know the difference between Searches, a Mortgage Valuation and a Homebuyers survey –

Early on in the conveyancing process, your conveyancer will ask you to make an initial payment on account to cover the cost of searches against the property you intend to purchase. These will cover environmental matters, water and drainage and a search of the local authority records for entries relevant to the property. As part of your mortgage application process your lender will also conduct a valuation of the property, a report on which you should receive with your mortgage offer. To produce this report the valuer will however have only attended the property very briefly, or may perhaps have only conducted a ‘drive-by’ valuation. It is therefore advisable to commission a full survey of the property separate from the above reports, for a detailed assessment of the property’s condition. Your estate agent should be able to assist with booking a survey for the property.

2. The process will take time –

Chances are that after having your offer accepted for a property, you will be keen to get the key for the house as soon as possible. It is therefore likely to be frustrating to learn the conveyancing process may take three months to complete – or longer in some cases.

3. Arrange Buildings Insurance –

It is vital to have buildings insurance in place by the point of exchange of contracts, so look early on at the policy that suits you best. This may be offered by your mortgage lender, or alternatively you may wish to look at comparison websites. Remember – you will need to be insuring the property from the date of exchange, not completion!

4. Don’t make yourself homeless –

Prior to purchasing your first home, you may well be living in rented accommodation. The temptation will be to hand your notice in early to your landlord, to avoid having to pay your first mortgage payment after completion as well as rent. Be aware however that the date for you to move into your new house can only be set when contracts exchange, and therefore handing in your notice to prior to this date can be very risky, Always make sure you have a contingency plan in case the date for completion of your house purchase slips beyond the date you need to vacate your rental property.

5. Organise your source of funds as soon as possible –

Prior to you being able to transfer your deposit and exchange contracts, you will need to supply your conveyancer with documentary evidence as to how you are funding the purchase of the property. This will include the need to disclose any third party contributions, such as gifted deposits. It is advisable to provide this information as early as possible during the process so as to not delay matters closer to the date of exchange.

6. Re-inspect prior to exchange of contracts –

The principle of ‘caveat emptor’, or buyer beware, applies to property transactions. The obligation is on the buyer to ascertain as much information about the property prior to exchange of contracts, and the buyer then takes the property in its current condition at the point of exchange. It is therefore vital that you are fully satisfied regarding the property’s condition prior to exchange. Chances are by the point of exchange your first viewing of the property will have been a number of weeks ago, and therefore it is advisable to re-view before exchange to identify any potential issues.

7. Know the difference between exchange and completion – and the significance of both –

Exchange of contracts creates a legal obligation between you and the seller for you to purchase the property on an agreed date. You will need to have signed your contract and lodged your deposit with your conveyancer before exchange of contracts can take place. In only rare circumstances will this also be the date that you receive the key for the house, which will be the date for completion. Completion typically follows around a week after exchange of contracts, however it can be longer depending on the intentions of the parties in the chain.

8. Stamp duty –

Do you need to pay? If you are purchasing the property for less than £300,000.00 and neither you nor anybody purchasing the property with you have owned a property previously, you will be eligible for a stamp duty exemption. Special rates also apply if you are purchasing a property exceeding a price of £300,00.00.

9. Protecting your deposit –

If you are purchasing the property jointly but are making unequal financial contributions towards the purchase price, you may wish to consider protection your contribution by way of a declaration of Trust. Our expert private client department can advise you on the appropriate steps to take to match your requirements.

10. Ask questions! –

The process can be confusing and at times overwhelming. Our conveyancing team will be on hand to answer any questions you may have.

For more information about our Conveyancing Solicitors visit our Conveyancing page.

If you would like any further advice in relation to purchasing your first home, contact our expert Residential Property team on 01908 660966 / 01604 828282.

The government has recently announced that it will introduce a ban on the sale of new houses as leasehold, with new build houses to be sold on a freehold basis except in the most extraordinary circumstances. Ground rents will also be reduced to zero for any new leases entered into.

Communities Secretary James Brokenshire stated “We have long recognised that we have a responsibility to confront unfairness in the leasehold market”.

“We will legislate to ensure that in the future – save for the most exceptional circumstances – all new houses will be sold on a freehold basis. We are committed to taking bold action to reform the sector and will be pressing ahead as soon as parliamentary time allows.”

The new policy is in response to widespread criticism of the leasehold system of property which has left many homeowners unhappy with rises in the ground rent and service charge demanded by the freeholder, and that such charges have affected their ability to sell their property. The changes brought in however will only affect new build properties, and there is yet to be any comment from the government about reform to the leasehold system for existing properties.

For advice and assistance in selling your leasehold home, please contact our expert Residential Property team on 01604 828282 / 01908 660966.

A recent survey conducted by Saga has revealed that a stamp duty exemption for those wishing to downsize would encourage those taking part in the survey to move home.

The survey revealed that 73% of those taking part over the age of 50 would support a move of one free stamp duty move if they were to be downsizing. Furthermore, 25% of respondents suggested that the cost of moving home was a serious deterrent in deciding whether to move, despite being otherwise keen to move due to their current property now being too large, or wishing to reduce the day to day running costs of their house.

Supporters for the move say that the removal of stamp duty for downsizing would free up more houses for younger buyers, making it easier for first time buyers to get onto the property ladder. The government has of course already shown their intention to assist first time buyers with their own stamp duty exemption, and it will be interesting to see whether further support in this form will be agreed.

For now the position remains unchanged and stamp duty will continue to be charged at the usual rate regardless of whether a buyer is downsizing. Pressure is however being applied to the government to reconsider its position.

For advice relating to stamp duty on your property purchase, contact our expert Residential Property team on 01604 828282 / 01908 660966.