Buying a new build house (off plan) - what to consider??

dodgy

I am using them yep. Seems okay, I figured that they would at least know what they are doing. First Direct (our mortgage lenders), however, were a little concerned that they weren't registered with the law society and were only registered convenyancers, but they seem to have accepted this when I explained that it was who the developers recommended.

I will say that yesterday was 28 days from reserving, and we've still had nothing from them as yet beyond the initial documents outlining the process and asking for the search fees. Apparently they are still waiting for the contract from the developers. Not sure if this is the normal pace these things happen, but so long as the developers are happy .. I am - the longer I hold onto our 10%, the better!

Reservation fee is out of purchase price, deposit is still 10% .. but then you pay the balance minus the reservation fee.

You are not tied into the mortgage until you draw on it, so if a better one comes along you are able to switch. You will incur some fees again, however - valuation for sure, not sure about arrangement fees if you don't draw on the mortgage.

JayneG

Thanks again!

knightstyle

Just to add, make sure you specify what is to be done outside the property. Turf, patio, fencing etc. This can be overlooked and the builder can leave you with mud and bricks round the house. Plus check the spec. on things like power points, are they doubles? Do you want a TV aerial in the bedroom? Can you switch the downstairs hall light off from upstairs? We can't in our new house!

Jonbvn

If you do decide to proceed make sure you get a professional snagging inspection done. Check out www.snagging.org for details.

There are several concerns about buying NB houses:

1. What happens if the builder goes under after contract exchange but before completing construction?
2. NB houses are generally over priced similar to new cars.
3. What happens if construction is significantly delayed or even shelved?
4. What about completion of infrastructure like roads and drainage etc?
5. If a new development when will the road get adopted by the local council?

The thing you have to bear in mind when purchasing NB homes is that most of the contract is biased in the favour of the developer.

I have heard it quoted that you have more protection buying a tin of beans than a NB house!

dodgy

Jonbvn wrote: »

1. What happens if the builder goes under after contract exchange but before completing construction?

For this at least you are covered by the NHBC up to 10% of the value of the house, so you'd get your deposit back if the developer went insolvent - assuming the house is being built under the protection of the NHBC.

Certainly I'd do what I did - make sure I visited the site on a few days and saw that they were actively building. It's no guarentee of what will happen in the future, but it made me feel better to know progress is being made. Certainly my property was at ground level one week, breeze blocks to the first floor the next week, outside bricks to the first floor the week after and is two thirds of the way up this week with the garage mostly built. This is the kind of progress I like to see!

NoDebtForMe_2

Yes I have a positive experience. I am moving into my NB on Friday. I have had zero problems with buying off plan.
I reserved first week of January with a view of completion end July/ Beg August. As soon as we reserved they commenced building. One month earlier than it was going to originally be released. They have worked very hard as the site manager was told by H.O that he had to have us in before the end of April. As I said we move in on Friday.
We used the recommended solicitors. We are constantly told on here not to but have never been told why not to. My solicitor actually put a clause in the exchange papers (amended it by hand as she was the recommended solicitor) to say they had to complete within 12 months (not the 18 months originally in the paperwork) An independant solicitor would not have been able to do that.
My valuation was done on the footings and he spoke to the site manager and looked at the already built houses. No problems there either and it wasnt valued again after that. I got such a good deal on it even if prices had dropped it owuld have still been in line. Perhaps go for a bigger reduction rather than having incentives and then the price will stay in line like mine did?

n.b Someone mentioned double sockets......they have to put them in as standard now apparantly.

Sarah

GDB2222

JayneG wrote: »

Bubblepop, I read your other thread, what a nightmare! Luckily there are no communal areas on this development (all houses) so that particular issue shouldn't trouble us.

No communal areas? So, have all the roads been adopted by the local authority already? No, verges to grass over, that sort of thing?

The standard new-build contract allows the builder to delay indefinitely. I wouldn't sign one like that, even though lots of people will tell you that it has gone okay for them.

JayneG

Thanks all, I really appreciate you taking the time to add your thoughts, some really good advice/pointers/words of caution on here.

Unfortunately I have fallen for the house, so am not able to behave as rationally as I would like to (i.e. stick to the plan and wait for prices to drop further) so it's about damage limitation now I think!

Knightstyle, good point, I've made sure fencing is included, but hadn't really thought about the exterior of the front of the property. I'll include it in my list of demands when I go to see them on Thursday.

Jonbvn, thanks for the list, and the link, I'll pay it a visit.

Dodgy, yes, I don't think I'll be able to keep away to be honest! The build has already started up to ground level, and the one next door is built, and the 3 on the other side of it are all reserved, so that's encouraging I suppose.

Sarah, thanks for your story, good luck with the move, you have made me feel better, so many thanks!

GDB2222, thought someone might pick me up on that. I meant stairways, hallways, etc, but you ae right. luckily, the street/roads already exist on the part of the development we would be living.

GDB2222

JayneG wrote: »

GDB2222, thought someone might pick me up on that. I meant stairways, hallways, etc, but you ae right. luckily, the street/roads already exist on the part of the development we would be living.

Are the roads adopted yet? Are they good enough to be adopted?

JayneG

Yep, the street the house is on already has lived in houses on it and has been adopted.