What do I need to consider when buying a new build property? And why should I use a specialist new build solicitor?
Thinking of buying a new-build property? Then you’re not alone. Research recently shared by new home sales website whathouse.com, shows the number of people in the UK looking to purchase a new build home in July 2022 reached almost 49,000 – an 11% increase on the previous month.
Jess McKenzie, new-build property law expert and head of new build property at Holden Smith, explains: “There are several pluses when you choose a new build home. Although they can be more expensive, you can often choose to buy off plan meaning you may be able to tailor your new home and make it more personal to a certain extent. There’s also the fact that no-one has lived in it before – and who doesn’t love that shiny new home feeling and the smell of brand-new carpets!
“Also, as energy prices are on the up, new build homes are becoming increasingly appealing to buyers as they look for more efficient houses that can help to lower their bills.”
What do I need to consider when buying a new-build property?
Jess continues: “Buying a new-build home comes with its own quirks compared to buying an existing property and it can often be more complex. It is important to instruct an experienced new-build property solicitor or conveyancer to ensure what you think you’re buying, is exactly that.”
Why is conveyancing for a new-build property more complex?
“When you buy a new build, there can be a higher risk of things going wrong with the build”, Jess explains. “This can include issues such as non-compliance with planning regulations, homes not being built in accordance with the original plans, or developers not completing agreements for roads and sewers.
“This shouldn’t put you off, but it means you should instruct a conveyancer that is experienced in dealing with new builds specifically. Doing so will make sure that any of the issues above are identified and dealt with, and also ensure that the contract is in your favour, that your deposit is protected, and that you have a long-stop completion date in place (the date by when the developer must agree to have finished the build and is ready to hand over the keys to the buyer).
Why should I use a specialist new build solicitor to buy a new build house?
Jess explains: “In addition to what I’ve explained above, a developers’ sales team and solicitor may try to rush the completion date of the property – often to hit their end of year numbers.
“It can be easy to feel rushed and a bit confused in this instance, but a specialist new build solicitor or conveyancer will not give in to the pressure, instead ensuring that your transaction is legally tight and, in your favour, before you agree to any completion date.
“When you buy a new build property, you will also receive the benefit of a National House Building Council (NHBC) guarantee or equivalent 10-year guarantee. This guarantee is given to the first purchaser on completion of a new build property and lasts for 10 years - and is an insurance policy on which you could make a claim if a serious defect arose.
“A new build solicitor or conveyancer will be able to set out exactly what this guarantee covers and how to make a claim if there were any defects – as well as ensuring you understand exactly what its limitations.”
Jess McKenzie is Head of New Build Property at Holden Smith
What does a new build conveyancer check and look out for?
“Your conveyancer will ensure that various searches on the new build property take place”, Jess explains.
“This includes tasks such as checking the property has been built in accordance with the correct planning permissions, that water and drains are connected, and that the road the house is on has been adopted.
“They will also establish if the property is leasehold or freehold. If you are buying a new build leasehold property, like an apartment, your solicitor will help you understand the service charges and exactly what they do (and don’t) cover.
“Your solicitor should also establish if there are any restrictive covenants on the property you are buying that could prevent you from making certain changes to the property in future, for example prohibiting you from adding an extension without permission, or at all.
I want to buy a new build home – what should I do next?
“If you’ve decided to buy a new build home, instructing an experienced new build property solicitor or conveyancer as soon as possible is important”, says Jess.
“Buying a new build property comes with so many advantages but also its own laws, so make sure you instruct an experienced new build specialist to work in your favour and help secure you the home of your dreams, without the stress.”
Are you buying a new build home? Get in touch with our new build property team here, email info@holdensmith.co.uk, or call 01943 725375.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article, please contact Holden Smith.
