Buying Process for a new build flat that no one has previously lived in

drajgor2000

Hi all,

I have recently had an offer accepted for a new converetd flat that was finished in March of this year. No one has lived in it and the building belongs to the developers.

As no one has previously lived in it, can i expect the deal to be tied up quicker or slower than one which has been previously occupied?

Thanks for your help!

kingstreet

If needing a mortgage, your purchase will be classed as a newbuild and a lower maximum loan to value will be applied.

You'll pay builder solicitor engrossment charges on first registration and speed will depend on how on the ball the builder's solicitor is.

Timing v "normal" purchase?

Could be more or less. No hard and fast way to tell.

G_M

As a new lease will be needed, it depends if this has been already drawn up in preparation, or still needs to be done......

drajgor2000

Thanks for the reply Kingstreet.

I have a 20% deposit for the mortgage and am waiting for the valuation to be completed.

From what I understand from the EA, there was a previous buyer before me in April but he/she pulled out. I'm assuming the builders solicitor has the 'pre-contract' details ready from that. If there was a pre-contract package for a previous potential buyer who has now pulled out, can that package be transferred over to my solicitor to accelerate the sale?

Dan-Dan

sorry to butt in , but did you find out why the previous buyer pulled out (personally , i would want that info)

eddddy

Being businesses, developers are usually keen to get properties sold and cash in the bank as quickly as possible (so they have the funds to start on their next project).

And since getting houses sold is a critical part of their business, you would hope they use an efficient solicitor.

And of course, there is no chain above you.

So it's more likely to be the speed of your solicitor, lender, valuer etc that governs the speed of the sale (as well as the complexity of any issues your solicitor finds).

drajgor2000

I believe the previous buyers pulled out because they were unaware that a 20% deposit was required......so the EA tell me. I'm hoping their is nothing peculiar listed in the contracts. I guess I will have to wait and see what my solictors pull up.

libf

eddddy wrote: »

Being businesses, developers are usually keen to get properties sold and cash in the bank as quickly as possible (so they have the funds to start on their next project).

And since getting houses sold is a critical part of their business, you would hope they use an efficient solicitor.

You'd think so, but the solicitors of the developer that I'm buying from have sent the wrong title transfer paperwork and are quite slow at replying to my solicitors queries...

drajgor2000

The area and the property are very nice, plus there is a 10 year warranty with Lloyds Syndicate.

I'm in a situation where I am supposed to move out of the property I am renting now in the last week of August and would rather not pay an extra months rent if I do not have to. My offer got accepted almost 2 weeks ago and I put in a full mortgage application last week. Is it possible that I could exchange and complete the purchase of this new build by the end of August?

The EA have pencilled in exchange for the 3rd of August and completion a week later. But I do not know if this is over ambitious.