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Additional costs in buying a "New Home"

expansion
expansion Posts: 108 Forumite
Tenth Anniversary 10 Posts Name Dropper
in House buying, renting & selling
What are the additional costs involved when buying a "New Home"? Taxes, fees, etc. that are different (higher or lower) than buying an old build.
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Comments

  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    New homes cost more there is a premium on the price because the house is new.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    expansion wrote: »
    What are the additional costs involved when buying a "New Home"? Taxes, fees, etc. that are different (higher or lower) than buying an old build.

    There is no difference in 'taxes or fees' that are purely based on the age of the home.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    expansion wrote: »
    What are the additional costs involved when buying a "New Home"? Taxes, fees, etc. that are different (higher or lower) than buying an old build.

    If you're buying a "new" home you will be normally buying from a developer so it's up to you to negotiate what you get included in the package.

    You could get landscaping, floor coverings, upgraded kitchen appliances etc. They would be additional costs that you wouldn't normally get with a second hand house but in a second hand house they'd all be in "used" condition and soon require replacement.

    New houses depreciate in the first few years whilst established houses tend to stay the same value relative to inflation.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • dgtazzman
    dgtazzman Posts: 1,140 Forumite
    Cakeguts wrote: »
    New homes cost more there is a premium on the price because the house is new.

    Let me correct the above statement:

    New homes MAY cost more as there MIGHT BE a premium on the price because the house is new.

    All depends on how good you are at negotiating and what kind of demand there is for the plots.

    Same goes regarding the statement of depreciation, all depends on the local market and what kind of deal you got.

    All 'taxes and fees' are the same for new and old. If you use a scheme like Help To Buy, there will likely be some extra solicitor fees to pay, but this won't be much.

    You might have to pay for landscaping, etc. as many builders don't include this and just give you an empty piece of dirt as your garden. Even if a house is new, there will still be decorating costs, lighting, curtains/blinds, paint, etc. Flooring may or may not be included in the purchase price. You will probably need to get a new phone line installed (think that's something like 60 quid). Many small extra costs that soon mount up and you won't think of till you get into your new property.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    HappyMJ wrote: »
    They would be additional costs that you wouldn't normally get with a second hand house but in a second hand house they'd all be in "used" condition and soon require replacement.
    .

    Second owner, next door 3rd owner still got the stuff the developers installed(quality 20 years+).
  • RIPironman
    RIPironman Posts: 42 Forumite
    I'm about to buy a new build and we are getting everything inside included (no additional extras for types of oven, hob), whole house floored (carpet or lino), stamp duty paid, turfing to garden and £1500 cash back.

    I know we are paying a premium for the house in the first place but, with no cash to do renovations to an old house, this is the best option for us,
  • kingstreet
    kingstreet Posts: 39,444 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It is normal for the purchaser of a newbuild to pay towards the builder's solcitor's charges for the first registration of the property.

    I believe the term is "engrossment charge".
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • AnnieO1234
    AnnieO1234 Posts: 1,722 Forumite
    Would there be additional fees to the buyer with a leasehold property when getting the lease prepared? Over and above usual leasehold legal fee increases iyswim?

    I can't recall any additional fees as such, we built new in 2012 with a freehold. However most plots we saw were leasehold and at that only 125 years. Estate charges tend to be relatively modern. There were two estates we viewed that had drainage dykes with associated fees, again I get the sense the fees are a modern construct.

    That being said, we secured a freehold on an estate with no charges. Charges apply to the apartment blocks for their communal areas only. the builder had to place an artwork and garden in a common area off the estate for planning purposes, which doesn't form an ongoing commitment for us but I'm not sure if it affects other developments with similar constraints.

    Xxx
  • expansion
    expansion Posts: 108 Forumite
    Tenth Anniversary 10 Posts Name Dropper
    Thank you.

    So, taxes are same. I wasn't sure if there was for example VAT to pay on a new build.

    There may be some additional fees and you may get less than a ready-to-move-in place which come down to negotiation skill.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    expansion wrote: »
    I wasn't sure if there was for example VAT to pay on a new build.

    You never pay VAT on residential property.
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