The New Build Home Buying Process: Step by Step

Buying a new build property in London can be both exciting and overwhelming. To help you navigate the process with ease, we have outlined the key steps involved in purchasing a new build home.

1) Define Your Budget and Requirements: Before diving into the property search, it's essential to have a clear understanding of your budget and requirements. Determine how much you can afford, taking into consideration mortgage rates, stamp duty, and other associated costs. Outline your property preferences, such as the number of bedrooms, desired location, and preferred amenities.

2) Mortgage Pre-Approval (Mortgage in Principle): Obtaining a mortgage pre-approval is beneficial in establishing your budget and demonstrating to sellers that you are a serious buyer. Consult with a mortgage advisor or broker to discuss your financial situation and find the best mortgage options available to you.

3) Appointing a Solicitor: An essential part of the new build buying process is appointing a solicitor who is experienced in dealing with new build properties. The solicitor will manage the legal aspects of the purchase, ensuring a smooth transaction and protecting your interests. Be sure to choose a solicitor with a proven track record in new build conveyancing, as they will be well-versed in the intricacies of this type of property transaction. It's advisable to appoint a solicitor as early as possible, ideally before you reserve a property, to ensure they can start working on your case promptly.

4) Research and Property Search: Conduct thorough research on the London property market and various neighbourhoods to find the ideal location for your new build property. Engage the services of a reputable estate agent, such as LonGrad New Homes, who specialises in new builds to assist you in your search. They can provide valuable insights, arrange viewings, and help you find the perfect property that meets your criteria.

5) Making an Offer and Negotiating the Price: Once you've identified the perfect new build property, it's time to make an offer. This is where the expertise of a good estate agent truly shines. A knowledgeable agent, familiar with the local market, will be instrumental in helping you negotiate the best possible deal. They will provide guidance on making a competitive offer while also ensuring you don't overpay for the property. Estate agents can offer valuable insights into the developer's flexibility on price and any incentives that may be available. Trust your agent's advice, and don't be afraid to negotiate – it could save you a significant amount of money on your new build purchase.

6) Reservation: Once you have found a suitable new build property, you will need to reserve it. This typically involves paying a reservation fee (usually between £500 to £5,000) to secure the property and remove it from the market. The reservation agreement will outline the terms and conditions, including the reservation period and any potential penalties for withdrawing from the purchase.

7) Conveyancing and Legal Checks: Hire a solicitor or conveyancer to handle the legal aspects of the purchase, such as reviewing the contract, checking for any potential issues, and ensuring all necessary permissions are in place. They will also liaise with the developer's legal team and conduct searches on the property, such as local authority, environmental, and drainage searches.

8) Property Survey: Although new build properties generally come with a warranty from the developer, on rare occasions it could still be a good idea to have a surveyor conduct a thorough inspection of the property. This can help identify any potential defects or issues that may need to be addressed before completion. Ask your agent to guide you on this.

9) Mortgage Application and Valuation: Submit a formal mortgage application to your chosen lender, providing all necessary documentation and financial information. The lender will conduct a valuation of the property to ensure it is worth the amount you intend to borrow. If the valuation is satisfactory, the lender will issue a formal mortgage offer.

10) Exchange of Contracts: Once all legal checks and searches are complete, and your mortgage offer has been issued, your solicitor will exchange contracts with the developer's legal team. At this point, you will usually need to pay a deposit, typically 10% of the property's purchase price. After the exchange of contracts, both parties are legally committed to the transaction, and the completion date will be set.

11) Completion: On the agreed completion date, your solicitor will transfer the remaining balance of the purchase price to the developer. Once the funds are received, you will officially become the owner of the property. The developer will provide you with the keys, and you can finally move into your new build home.

12) Post-Completion Formalities: After completion, your solicitor will register your ownership of the property with the Land Registry and handle any post-completion formalities, such as paying the stamp duty. Additionally, be sure to inform relevant parties, such as utility providers and the local council, of your new ownership status.