Understanding New Build Homes

A new build home is a property that has been constructed recently, often within the last couple of years, and has never been lived in. Quite often you will be reserving a new build home before it has been built and this is called buying ‘off-plan’. The appeal of a new build comes from modern designs, energy efficiency, and minimal maintenance.

Advantages of New Builds:

• Customisation: Choose the fixtures and finishes, from flooring to kitchen units. At Kingswood Homes you can also choose your ground floor and first floor layouts to create your dream home.
• Energy Efficiency: Built to modern standards, new homes tend to be more energy-efficient, saving you money on utility bills.
• Warranties: New builds come with a 10-year structural warranty from either NHBC or LABC.
• Lower Maintenance Costs: With everything brand new, you’re less likely to face immediate repair costs.
• No Chain: When buying a new build home as a first time buyer, you won’t be part of a property chain. This means there’s no risk of the sale falling through due to issues with other buyers or sellers in the chain, making the process smoother and potentially quicker. It also eliminates the stress and uncertainty often associated with property chains in the resale market.

Get Independent Financial Advice

Speak to an independent financial advisor to determine how much you can borrow and what you can afford. This will help you set a realistic budget and avoid looking at properties out of your price range. Remember to account for additional costs such as legal fees, surveys and moving expenses.

Mortgages for new builds can differ slightly from those for older properties. Lenders may require a larger deposit for a new home. It’s wise to check the terms with your lender.

Check if there are any incentives available from the builder which may offer a helping hand. For example, Kingswood Homes is currently offering up to 5% deposit contribution on all homes.

Understand the Reservation Process

Once you’ve chosen your dream new build home, the buying process begins. Here are the key steps:

Step 1: Reserve the Property

When you find the property you want, you’ll need to pay a reservation fee (Kingswood Homes’ reservation fee is £1000). This secures the property and takes it off the market while contracts are drawn up. The reservation period is usually 28 days.

Step 2: Get a Mortgage Offer

With your reservation in place, you’ll need to finalise your mortgage. Make sure your lender is aware that you’re buying a new build, as some may have specific requirements or shorter mortgage offer timeframes.

Step 3: Instruct a Solicitor

A solicitor or conveyancer will handle the legal side of things. For new builds, they’ll review the developer’s contract, ensure that the property is being built to the agreed standard, and check for warranties.

Step 4: Exchange Contracts

Once the legal checks are completed and your mortgage is approved, you’ll exchange contracts. At this point, you’ll pay a deposit (usually 10% of the property value) and the sale becomes legally binding.

Step 5: Wait for Completion

If the property is already built, completion can happen shortly after exchanging contracts. However, if it’s still under construction, you may need to wait several months. The developer should provide you with an estimated completion date. You’ll be given notice when the property is nearly ready, at which point your solicitor will arrange for completion.

Learn more about the legal process of buying a new build home.

Arrange Insurance

Organise building insurance as required by your mortgage lender. Also, consider contents insurance to protect your possessions.

Stay in Touch

Maintain regular communication with your solicitor and the sales team. Provide weekly updates on the conveyancing process to ensure everything progresses smoothly.