Today, whilst talking about work on my Instagram stories, I mentioned that I used to work in new builds and I got so many messages with questions from people about the buying process which prompted me to write this blog post. I feel like I can write well about this subject as I haven't just worked in new builds, but in my time I have personally bought 3 new build properties (all different developers) and also another property still under a NHBC warranty. I have bought for myself as a first time buyer, I have bought while being in a chain and I have bought as an investor so I can write this from all perspectives. However, I am going to focus on the journey as a first time buyer for the sake of this blog post.
I used to work for a very well known developer who, I must say, were pretty good to work for. However I do wish this blog post was anonymous in some ways as I would love to write absolutely everything about what happens when working for a developer, but they were good to me and I'd like to leave things on a positive note. (Plus my husband still works for them!) I will write as much as I think is possible I'll get away with!
Every development is so different, which obviously you will need to take into account when reading this. Still to this day I can't believe the difference of price of houses just a 10 minute drive away from me. Some areas are really sought after, others aren't and this will affect the buying process massively.
There are so many benefits of buying a new build. If you are a first time buyer, you are not entering into a chain which means no fall throughs, it is significantly less stressful MOST of the time, you have a lovely brand new house you can put your own stamp on and there are some great schemes you can use to buy.
So you've seen the development, you love the area, you've spotted your dream house type and you know that you have finally found the place you would love to call home. You go into the development and theres no availability. You're told that everything has sold until next year and you have been given such vague information as to if and when there will ever be a property come available that you leave the office feeling very, well- deflated. That is what happens daily to people when it comes to new builds. I think the reason why so many people are left disappointed, is because it just looks so easy- you go into an office, pick out the one you want, they start building it for you, and hey presto, 3 months later you are in. Unfortunately it doesn't always happen quite like that.
So heres a list of the most common things people get disappointed by:
"Why have all the best plots gone?"
Buying of land normally happens years before the launch of a development. Most of the big developers have bought enough land to see them though for the next 10 years in fact. Word gets around, planning applications are public and coming soon signage is erected all well before the first house is sold. There are certain areas that people have had their eye on for a long time and have made sure they are ready to pounce as soon as they are able to reserve. Register your interest before the sales office opens and make sure you are at the opening of the development. Keep an eye out though, some developments that are known are going to be popular start pre selling before the sales office or show homes are even opened.
"I was told that there were some plots going to be released today. It's 10am, surely they haven't sold that quickly?"
Let me tell you a true story. In the apartment block where myself and Elliott used to live, people would start queueing on Thursday night for a Saturday morning release. Thats right, they would camp on the sales office steps for their plot.
"I've been told I can't reserve my house as its not ready until next year??? I want to reserve it now!"
A developer will not 'release' a plot until at least 6 months before it is ready to move in to. There are 2 main reasons why this is the case. Most mortgage offers only last for 6 months, and also they want to release prices that are right for the time. For example, you wouldn't want to agree to buy a house that is due to be ready in 3 years time would you? You don't know what the market is going to be like, the house you have agreed to buy for £350k now could be worth £250k then. Its to protect both you and them. But mostly them.
"There's a house for sale and I want to buy it but I've been told to come back when my house has sold. The house isn't ready for another 6 months and I've been told it'll sell quickly"
If I had a pound for every time I'd heard an estate agent tell someone their house would 'sell quickly' I would be writing this blog post from a yacht in St Tropez with a glass of Crystal in my hand. I don't know what it is about new builds that makes people think that the buying process is completely different to the second hand market. You need to be SSTC (sold subject to contract) in order to reserve a plot on a new build development. Some developers require you to have exchanged contracts in order to reserve a plot. Just as you need to be sold in order to purchase a house on the second hand market. If your house isn't even on the market, theres really not much point in discussing any particular plot in detail with the developer. If its at least on the market, you will be taken a lot more seriously.
"I was hoping to Part exchange, but Ive been told this isn't possible?"
I've written more about this further down, but part exchange isn't always available and isn't for everyone. Its a good scheme, but the guidelines can be strict. Don't just assume you're going to be eligible. Also, you are not going to be able to reserve there and then if you are wanting to do a PX. It normally takes a couple of days so be prepared for the plot to be swiped from you by some ready to go first time buyer or cash investor.
"They don't have the house type I am interested in as a show home. I don't want to buy without seeing what it looks like first"
Many people see a particular house type for the first time when they open the door to their new home. It is difficult to imagine without seeing a show home if you are not used to looking at technical drawings, I completely understand. However I have never in my life either seen or heard of anyone being disappointed in their home choice once they have seen it. Normally there are ways to see a version of your home though, so don't worry. Firstly, developers use the same house types across most of their developments, so ask the advisor if there is a show home of your house type nearby that you can book an appointment to see. If you get no luck, then there are you tube channels specifically for house tours of show homes. Just type in the name of the house type into the Youtube search box and you're away. Bear in mind that layouts can change across the country and the exterior will look completely different.
"Why is the sales office/ show home closed? Ive come a long way!"
*Eye roll* Book an appointment and you will have access to the show homes. What people fail to understand is that the sales offices are usually manned by one person at a time- who have appointments and meetings to attend, a lot of them out on site which could be quite far away, and the office cannot be open 24/7. The show homes look lovely, yes, but they do have to be snagged, painted and kept that way meaning they too cannot be open at all times. Ring ahead.
"Why am I not being told a move in date?"
Because your house is under construction. Unfortunately there are many things that can affect when you move in that are just out of everyone's control. Weather, labour shortage, and supply of materials to name a few. Also, if the developer is part of the NHBC, then until they sign off the house as 'build ready' the developer can not give you a date. So hold off on booking in that sofa delivery!
Securing your dream home
So after reading all that, I bet you're thinking buying a new build is a complicated and disappointing process? Not at all. Heres a step by step guide to buying a new home.
Launch day.
If you can make it to launch day, then I recommend you go on down. It gives you a good chance to get to know the team, look at the show homes, speak to a mortgage advisor and theres normally food provided (you had me at food). Obviously there is also the fact that you are there on the first day and can get first pick of plots if you're ready to reserve there and then. I have known of some developers to do deals on launch day too if you reserve that weekend but I haven't seen this in a while. If you are looking to reserve on the first day, get there early if you know it is a popular area.
If the plot you want isn't going to be released for a while and you're prepared to wait, see if the sales advisor will give you some sort of 'early bird' reservation. It all depends on the development, and most of the time the advisor but it just means you can breathe a sigh of relief that you will be the first they call when its released. You will NOT be given a price, however the adviser should be able to let you know whether it should be within your budget. Be patient though- the fact that you have your name on it doesn't mean they will get round to building it sooner. And if they don't let you do any sort of early bird reservation? My best advice is to pester them in a really nice way! Book an appointment with the advisor for nearer to when the plot will be released to discuss the plot further, ask to look at some plans, call maybe once a week always saying your name and the plot number. By the time the plot is released you probably will be the first one that they call anyway as they have invested time in you and they know you want it you want them to think of your name as soon as that plot is mentioned. In order to have the best chance on securing the plot you want;
DO
Be nice! I'm not ashamed to say there have been a lot of people who have kicked off in my office or been rude to me in the past- and when the plot they want has been released did I call them? Did I hell. I'd much rather sell to a lovely first time buyer couple who I can enjoy handing the keys to than cash buyer dick head Nigel thats going to be a pain in the ass for months on end. The sales adviser has a lot of power in regards to releases and who gets them. Some even have a big input when it comes to pricing too. The good thing about this is if you're on a popular development, you're neighbours are all likely to be lovely!!
Be persistent- make sure that you call or email regularly to check how build is going. If you are recognised by both name and face, if anything happens regarding the plot you want to reserve, you are more likely to hear of any build updates. At this stage, keeping in touch to let them know that you are serious about buying will do you a lot of favours.
Be patient. You may have an early bird reservation which is great, but this doesn't really mean much in relation to all of the sales that are going through. The adviser has a lot to do to make sure that these sales all go through on time and to put it bluntly, until your plot is released, you are at the back of their minds. Just sit back, relax and just be happy that you are on the top of the list.
Be prepared with your mortgage. Get a mortgage in principle, or at least be 'qualified' by a mortgage advisor, near to the time of reservation so that you can go ahead as soon as the plot is released. In regards to mortgage advisors, I would go for whoever is recommended by the developer. There are two things to look out for when getting mortgage advice- the first is to get someone who is free to use. Mortgage advisors get paid via commission off the lender. The details of this is written in your mortgage agreement. To charge is just plain naughty, and it makes you question how busy or good they are if they are charging people for their advice. Ive heard of people being charged £400 odd quid before which is insane!! The second is to make sure they are 'whole of market' so you are getting a fair choice and comparison. A nationwide company you can use is London and Country- they will do everything over the phone and via email. If you want a more personal service, go local. If you are in the Gloucester, Swindon, Bristol, Taunton areas, Dupree mortgage solutions are a good one to use.
DON'T
Following on from my last point, don't expect to come in and spend hours in the office looking at plans and choosing your kitchen. You will have all the time in the world to do this once you've properly reserved. If you see it from the developers point of view, you haven't committed to anything yet. Even if YOU know you're definitely going to buy, for all they know you could refuse at price release. They are not going to do hours of appointments with you when they are not even sure you want to go ahead. Once reserved, you book as many appointments as you like.
So what happens next?
So you get the call, you get the price and you would like to reserve! Being a first time buyer especially, this can be a very daunting experience for you. Here is a guide to what happens next-
Reservation
Firstly, all developers are different, but the one I worked for very rarely agreed to any deals. I personally never gave anyone any deals on a sale but I was always on developments that were very in demand, so there was no point giving money off on a plot you had a waiting list of people that were willing to pay full price for. However, I do know that a lot of developers price plots to give wiggle room for deals and I would always ask anyway as if you don't ask you don't get. If they can't give you money off, ask if they would throw in something like flooring, or a kitchen upgrade.
ALSO before you step foot in the office to sign, check if there is anyone you know who has bought from the same developer before you. Even put a Facebook status up or something on Instagram- you don't even really have to know the person but a lot of developers give you a 'recommend a friend' voucher on completion that gives you money off your plot and also gives them a cash reward so its win-win. (We've done it before and received a £1000 cheque off a developer just for recommending someone we met in the carpark so we didn't even know them.) You will need to bring that voucher to the reservation appointment with you.
Reservation in the new build world is the equivalent to having an offer accepted on the second hand market. It is an agreement that you are purchasing a particular property for an agreed price. This agreement lasts for a month, (there will be an 'expiry date' on your reservation paperwork) and hopefully by then you would have exchanged contracts. Be prepared for the next 4 weeks to be very busy.
You will be invited in to the office to sign the reservation agreement and to pay the reservation fee. This is normally £500 or £1000 depending on the developer.
You should also be given a rough build completion date normally given in months. (For example, you reserve in January, your rough completion date would most likely be May/June/July.) This is all you're going to know for a while, I'm afraid.
Once the reservation is done, your next appointment will be very soon after. (Sometimes it is done at the reservation but again depends on where and who you're buying from.) This appointment involves looking at plans of your property, the development as a whole and details that you need to know as a buyer. You should come out of that appointment with confidence that you know everything you need to know about your house and development. If you don't, ask for another appointment. The things that should be covered are as follows; (if they are not, then ask about them)
Conveyance plan- The conveyance of your plot is the plan that has the red lines that denote where your boundary is. You should be paying attention to this rather than the pretty development layout as this is how you'll know if the little path to your house is a shared access route (not likely, but if it is it will be highlighted in yellow) or if the little path of grass to the side of the house is actually owned by you (you'd think so, but stranger things have happened). This plan also includes details such as street lighting where you will be able to see whether you have sufficient lighting for access or if you have a street light right outside the window you planned to have as your bedroom. The advisor is not allowed to give copies of these plans away but if you did want to take a sneaky picture 'without them looking' for future reference, then most should be ok with that. Bear in mind though, these plans are revised all of the time, which is why you can't have a copy. Normally the changes are so minimal you probably wouldn't ever notice, but if its anything affecting your plot or if its a big change to the development then they need to let you know. For future reference, also note which side of the fence is your responsibility. To see this, there will be a 'T' on the fence- if the 'T' is on your side of the garden, then that is your responsibility. It's normally the fence to the left. It will also show what roads and outside spade will be adopted by the local authority/council and which will be the care of the management company.
Management company- Even if you're freehold, there still might be a management charge. This is usually no more than a couple of hundred pounds a year per plot (if freehold) and a lot more if your property is leasehold. (Normally apartments) Their role is to maintain the development once the builders are gone- a lot of new build developments have outside space, some have play parks, outside gyms and allotments for example. Someone needs to maintain these and unfortunately most councils won't have any responsibility for them now which is why management companies need to be appointed. Don't be surprised that you have to pay this- most new build developments will have management companies now and to be honest, it means that the development stays looking fresh in years to come and doesn't deteriorate. Well, it should do. I have dealt with many management companies in my time- some have been really impressive and some have been awful. You should find that if they have been appointed by a well known developer then you shouldn't have any issues. The main question I was asked about the management fee is if it will change and the and the answer is-most likely. The management company should maintain all areas that they are responsible for and provide you with a run down of costs at the end of the year. If they overspend, your fee will go up the following year. You should find that this shouldn't happen for a good few years, as they should underspend for the first few years because the development is brand new so the rest of the money goes into a 'sinking fund' to compensate for overspending. So what happens if you are not happy with the management company? Technically speaking, you can appoint a new one, but I am getting way too legal now, and what I would say is your solicitor will give you all the information you need.
Social Housing- (Also known as affordable housing or housing association.)
This is a funny one. Its something that has caused many debates in my office I can tell you that! However you do need to be given all of the details regarding these plots when you reserve. I used to get tons of 'know it alls' in my office waltzing in to tell me how its 'such a shame' that we 'have' to have some of our plots as social, and then they'd spend 5 fucking hours in the show home then another 10 telling me about how much bigger their own house is and then they'd walk out feeling pretty smug. What that person doesn't realise is they most likely have social housing on the same street as where they live, its just not on a massive development layout for every member of public to see. This is the way I see it- you could be living next to the biggest house on the development, it could have been a cash purchase by Mr Moneybags and he could be a complete nightmare. Or you could be living next to a family in an HA plot who are also a nightmare. The difference is you can't do much about Mr Moneybags, he owns his house. What you can do is go to the housing authority about the HA plot and they do take action on any anti social behaviour. If it continues, they are moved from the development. I have seen this happen twice so it does happen. I do see it as a positive, I personally would like my daughter to play with lots of different kids from all walks of life at the local park not just kids who's parents were lucky enough to have enough deposit for a new build. I have seen some fantastic communities built with a mix of HA and private plots. There is not a certain percentage that needs to be HA- it all depends what is needed in the area. This percentage includes shared ownership which I have written more about later on in this post under 'schemes'.
Plot specific plans-
When you are looking at your plan for your plot, pay attention as each plot can vary- so you might have the same house type as the show home- you may have an extra window in your plot, it may have a slightly different layout and of course theres about a 50% chance it will be handed. When your home is handed, it means that it is the mirror image of all plans you have seen. (so if the stairs on the plans are on the left, they will be on the right etc) However the layout remains the same. The other plan to keep an eye out for is your materials plan. These are the materials that make up the exterior of your house. If you have your heart set on a rendered house rather than brick or stone perhaps, you should ask to see the materials layout when you are browsing to pin point where they are. If you cannot picture it, ask if there is a house on the development with the same finish and go and have a look. These different finishes ensure the development is varied and aesthetically pleasing and not all the same, because imagine hundreds of brick houses in one patch, it would look so dull.
You will most likely be shown service drawings which, unless theres something out of the ordinary to make note of, I find this is where most people switch off. One important thing to remember is that when your external works drawing is shown, pay attention to the ground levels. Every garden will be sloped slightly- you wouldn't want a perfectly flat garden- but some may be very sloped, some may have split levels. I sold a garden once which had 5 tiers to it! Don't let split level gardens put you off- I quite like them actually, but its all down to personal preference of course.
NHBC- If the developer you're buying with has signed up with the NHBC (National house building council) you should have more details on this too. The NHBC are the people giving you your 10 year warranty on the structure of the property, so anything you can't pick up and take away. The fixtures and fittings inside of the property are covered in your developers 2, 3 or 5 year warranty. Buying from a developer who is part of the NHBC is such a good move as they come out and check your house at different stages of build. The most important check they do is the one when the house is complete. When they do this, they sign it off as complete and issue a CML certificate. It is not until that certificate is issued that you will be able to have the keys to your new home and that is why you cannot have a definite move in date until that has been done.
On top of all this, you will be given a copy of the consumer code- these are your rights as a buyer. Gone are the days agents could just make up any old shit to get you to buy a house. Your adviser knows that any information they are giving you is correct and nothing they say should be misleading.
Exchanging Contracts
Once you have seen all of the plans and reserved your plot, it is time to instruct your solicitor and I would really recommend to use one of the recommended solicitors offered to you if your purchase is a pretty normal one. Make your decision as quickly as you can and don't switch to and fro if you can help it, as from the moment you sign that reservation paperwork, time starts ticking away. By using a recommended solicitor, this reduces the stress massively- the advisor is most likely speaking to these solicitors a few times a week, the search fees are normally wavered as they have already been done and the solicitors are usually on the recommended panel because they have worked with the developer before and have given a good service. (If the developer has feedback that they haven't given good service, they are straight on the phone to the solicitors, so you have them on your side too.) It just makes your life a lot easier- trust me.
The downside to using your own choice of solicitor is that it is a lot harder for the sales advisor to contact them. Some even refuse to speak to agents meaning the ball is in your court and you have to do all of the chasing. I understand it can put you in a very difficult situation as you may feel pressured into using a family solicitor, but if you are using a recommended then you are less likely to get your plot 'pulled'.
Plot pulling unfortunately does happen. When you go beyond the reservation expiry date, the developer can pull the plot from you at any time. When discussing pulling plots, the first thing they look at when deciding which plots to pull is whether the buyer is using recommended solicitors and mortgage advisors. If they are, they are normally over looked until the next week as they trust it is all in hand. The worst days I had while working in new builds were definitely the days that I had to tell someone that we were pulling their plot and putting it on the market. The main thing you can do to stop this from happening is to sign and send back any paperwork as soon as you receive it, (or even better if the solicitor is close, hand deliver) and also by using the recommended solicitors and mortgage advisors. If it looks as though you’re going to go over the deadline and you have returned all paperwork on time, don’t panic. A couple of weeks, even a month over should be ok, anything more then you need to start pushing things along (or your adviser should be chasing)
As soon as you have instructed your solicitor, you need to get everything to your mortgage advisor (or arrange a meeting if you are dealing with them face to face). You will need to have ready;
Last 6 months pay slips
P60
Copy of your passport
Utility bill for proof of address
Copy of your credit rating- these are printable from noddle.com- this is my favourite site for credit rating, as I find it easy to use and it’s always free.
Details on childcare- if you do not pay for childcare and a family member cares for the child, most lenders will want proof that that family member lives within a certain distance of your home.
Once your mortgage advisor has all of your information, if you don’t already, you’ll get a mortgage in principle. This is basically a document from your lender to say you're all good to go, and this should mean that you will be fine to lend to.
If you're using the Help to Buy scheme, you should also receive an Authority to proceed (ATP) which is a document from help to buy that confirms that you are eligible to use the scheme. Just before exchange of contracts you will get a 'authority to exchange' (ATE) which is also help to buy document. This is really the only difference in the legal process between using help to buy and not.
You will then have a mortgage valuation done, (which is all arranged by the developer and the lender, you don't have to do anything) which is basically the lenders way of making sure you are paying the right price for your new home. Once thats done, you should expect your mortgage offer within a few days. Which is just the best feeling ever- I still find mortgage applications soooo nerve wracking.
Meanwhile, you will be getting plenty of paperwork from the solicitor to sign and send back including a big thick document which is your contract. Once thats signed you are almost there to exchange. Make sure you also transfer deposit money in good time to your solicitor and remember if you are transferring online, you may have to do this over a couple of days due to daily limits so bear this in mind!
Once thats all done you can exchange contracts and RELAX!
So lets break the journey down so far:
RESERVATION
↓
CONSUMER CODE AND HOUSE PLANS
↓
INSTRUCT SOLICITORS
↓
MORTGAGE APPLICATION
↓
MORTGAGE IN PRINCIPLE
↓
AUTHORITY TO PROCEED (Help to buy only)
↓
MORTGAGE OFFER
↓
SIGN CONTRACTS AND TRANSFER DEPOSIT MONEY TO SOLICITOR
↓
AUTHORITY TO EXCHANGE (Help to buy only)
↓
EXCHANGE OF CONTRACTS
So what happens next?
Now this is the fun part- the exciting bits of watching your house being built and waiting for your house to be ready!!
Options/Choices-
If you haven't already chosen your extras to go in your house now is the time to do so. The first things you will have to decide on will be wall tiles, kitchen and any extra electrical sockets. It all depends on the stage of build, sometimes you will have to choose all of your extras right at the beginning when you reserve due to the build stage and sometimes you don't even get the option to choose what you would like as the developer has chosen for you. The best time to have this appointment is definitely once you have had your mortgage offer, even better after you have exchanged, as you can relax and enjoy the appointment without being stressed or worrying it may fall through, but that isn't always the case. Bear in mind that even though these decisions are often difficult to make, when you are told the decision is needed by a certain time, you need to make that decision. They are not going to hold up the build just because you can't decide what colour kitchen units you want- they will go ahead and put a basic one in and not give you a choice.
Electrical sockets-
Pay particular attention to the electrical sockets and plumbing in the house. Have a look on the plan and decide where you would like extra sockets/ T.V points etc (if any) and make sure you mark it on a layout to show where you would like them. Also with spotlights, don't just go with how many are in the show home- its very likely you won't need as many.
Plumbing-
Check what is as standard in your home on the specification sheet. You may see things like an outside tap and shower over the bath in the show home but these are most likely an upgrade. If you want these then I would recommend adding them in early, along with anything electrical so that you don't miss out.
Interiors- In regards to kitchens, buying a new build is great because even if you go for the highest upgrade of kitchen, it is still a fraction of the price of getting a brand new kitchen installed by anyone else. To get some inspiration before going to your appointment, have a look at Pinterest for colours and also go and visit some local show homes by the same developer as they will most likely have the same supplier so you can see the things on offer to you in the big picture rather than on a small sample.
I would decide on a budget beforehand and let the advisor know at the start of your appointment so they can tailor that appointment for you. Allow anywhere from 45minutes to 5 hours (yes) for this appointment depending on how much you want done. Don't feel embarrassed if you want to keep it as cheap as possible. I have done several appointments in the past where they have spent nothing, and some where they have spent over £30k!! A ball park figure for getting flooring and a kitchen upgrade for a 3 bed, you're looking realistically at about £5k. If you are not looking to move in straight away, you can get away with ordering flooring etc elsewhere which will be cheaper for you. I would recommend getting quotes from both the developer and elsewhere before making your decision. Note that if you decide to get flooring elsewhere, you most likely will not be able to have it fitted before you get the keys. And do not book it in for the day you plan to get the keys either!! The developer can do as much or as little as you like. If you're on a budget and would like to do things yourself over time, you can or if you don't want the hassle and want to open your door and have everything ready, wardrobes, blinds, curtains and light fittings, you can do that too.
Don't forget to ask about; (are they standard?)
Turf
Shower over the bath
Fencing in the garden (some developers only supply post and rail as standard)
A TV aerial! (most don't supply this as standard, you'll find they are mostly installed in the loft)
Are TV sockets supplied where you want them (in bedroom?)
You deserve as much time as you need to make these choices so have fun!! I used to really enjoy having these appointments with my customers. I would lock the door to my office, kick off my shoes, keep a teapot full, put out snacks and enjoy having an input into peoples interior. My office floor would end up covered with samples but I always felt as though my customers left feeling that they had had enough time invested in them. Be prepared to feel absolutely knackered once its done though- its sooooo tiring! Its not surprising at all though as you're having to make choices on every single room in your house!
Plot visits
As soon as the house is ready to view (normally when the roof is on) you should be able to have a look. You need to be prepared to have a weekday free as site visits are not normally done on a weekend due to the fact that the site is locked up then,. You will also need to wear PPE (personal protection equipment) to visit your home so you'll be suited and booted in steel toe capped boots, hard hats and vissy jackets. (So wear your hair down or low!!)
There's really not a lot to see at this point, but its nice to be able to see it under construction and take some pictures to look back on or even make a scrap book with. These visits aren't always possible, if theres essential works being done you will not be able to get access. Most of the time it is not the construction team being difficult, but imagine you were in that plot for half an hour, thats half an hour that work has to stop on your house. Imagine if you came a couple of times a week- that would be 24 hours worth of work missed out on which is about 3 days worth of work to a trade!
CML sign off
So by this point you still won't have a move in date, but you will probably know what date they are aiming for. If you have already been told your CML date, (they will know the date of CML months before, but it does depend on the advisor whether they tell you or not) then you should really take it with a pinch of salt as it can easily change. I have shot myself in the foot many times by telling people CML and move in dates for them to be pretty angry when they have changed. I used to suss out the customer first, and if they seemed pretty chilled I would tell them. If the advisor is not giving in, explain that you know the move in date is not set in stone but you would really appreciate it if they gave you the date so you could use it as a rough guide. About 90% of the time the date you are told will be the date that you move in.
Between 1 and 3 weeks before your move in date, you will be told your plot has been signed off by the NHBC. Your solicitor should let you know this once its been done, along with the agreed legal completion date.
New home demo
The new home tour is when you get to look around your finished home with the site manager. It will most likely be the first time you see your home all finished so it's really exciting! It will most likely be once you have had the NHBC sign off, so should be a couple of weeks before you move in. The site manager will explain to you the running and maintenance of your home and how to use your heating and appliances. I know its so hard, but try not to snag your plot while you're there, a lot can be done over a week or two so don't panic, and although your house should be finished by this point, believe me the finishing touches and snags are all done up to the very last minute. However if there is something thats really getting to you don't keep it in, tell them. If you don't feel comfortable saying anything there and then, just wait until after the appointment and ask to speak to the advisor about your concerns.
At the New home tour-
DO-
Ask questions!!! No question is stupid, just ask away.
Check all the choices you made are in and correct
Give them the benefit of the doubt. You haven't had the keys yet so if its not perfect, they still have time to make it so.
DON'T-
Take children with you. If you can help it of course! It will be boring for them, and also you won't have a chance to listen to anything the site manager is saying to you if you're trying to entertain them.
This is a bit of a controversial one, but if theres two of you purchasing and you can both make the appointment, keep it there. Too many cooks and all that. I have had a lot of parents turn up to new home tours with their notepads and lets just leave it there. 😣
Legal completion and handover
Happy move in day!!!! The day you've been waiting for is finally here and you can't wait to go and pick up your keys. But before you do, make sure you wait for that all important phone call from your solicitor to say that you have legally completed. There is no point going down to the office first thing only to wait in the carpark until the solicitor calls to confirm the money has hit the account. Even when the solicitor calls, make sure that you call the office before you go down there to confirm when you are arriving. Sorry to ruin it for you all, but at least give the advisor a chance to get the flowers delivered and put them in your home before you get there!!!
You will never know what time completion takes place. If you're in a chain especially, you might find that you won't complete until the end of the day, or you might get lucky and get the call at 9am, a lot of it is down to luck. Just don't book any carpet fitters for the completion day! If you have to book removals, book them in for a pm slot if you can just to be safe.
And finally...
There's one last thing I need to mention and thats the NHBC survey. Around 8 weeks after you move in, you will get a survey to complete. These surveys are so important to the developer. More than likely the staff that you deal with in the office and out on site are targeted on these surveys and they even affect their bonuses. You may have seen signage around these new build developments that say 'five star builder' and this is an outcome of NHBC surveys. A 'five star builder' shows that the housebuilder's customers are satisfied with their product and service.
In my opinion, the survey puts the ball very much in your court. You will find that before the survey is out, the guys in the office and out on site should be willing to do a lot to keep you happy. You should have any snags sorted quickly, any issues solved and if you need to ask anyone a favour nows the time to do it. If you have found that they have been really good, score them a 9 or 10 and put a 'yes' for recommend. If you haven't had good service, before you fill in that survey, ask for a meeting with the site manager and give him a chance to put things right before the survey expiry date. In no means lie, but you are much better off giving them a chance to put things right then giving them a good survey then just tearing into them straight away and this is why: Say plot 5 calls, they have a leak. Plot 4 has one too. Plot 5 gave you a good survey, and plot 4 gave you a horrendous one. You have one plumber to sort the problem. Which plot do you think they are going to send that plumber into first? Those surveys are seen by the big bosses- their MD reads every word and so do they. In fact the surveys are sent out weekly to every member of staff in the company. Its horrible getting a bad survey in for the whole company to see and they will try their absolute best to stop that happening. Use it to your advantage.
CHOICES/OPTIONS MEETING
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PLOT VISIT
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NHBC SIGN OFF (CML)
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NEW HOME DEMO/ TOUR
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COMPLETION/ HANDOVER
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NHBC SURVEY ARRIVES
Schemes
Help to buy- I used to find whenever I mentioned Help to buy to people a lot of the time I would get a 'no no, we won't be using that thank you, we don't need that' only for them to speak to a financial advisor and say that actually it was a no brainer and they were using it. Help to buy is based on a deposit of 5%, a 75% mortgage and a 20% loan from the government. However, you can put in a bigger deposit, you still get the 20% loan from the government but your mortgage percentage is minimised. You own 100% of your home as it is a shared equity scheme, not shared ownership. It is worth asking your mortgage advisor if you would benefit from it even if you are dead set against it just to see the difference. You do not have to be a first time buyer, however you cannot own another property. (If you are selling your house and using help to buy for the new one that is fine, you just can't have a second property). It's not there to catch you out. Its there to help people get on and up the property ladder.
Shared Ownership- Very confusingly can also be known under help to buy. I don't know a lot about this scheme, but it seems like a really good way to get onto the ladder if you're buying on your own or have a low income. You own 50% of your home and you pay part mortgage, part rent monthly. As far as I'm aware, you can buy out the other 50% later on down the line if you wish to. If you want one on a new development, you will have to go through the housing association as it goes under affordable housing and is owned by them.
Part exchange- A great scheme as you don't have to worry about a buyer, estate agent fees or having to move out of your property and go into rented while you're waiting for your house to be built as you have no impatient buyers on your case. However most developers require the house you're buying to be at roof level of build before you can reserve, which if its a busy development, you're not going to see many on the market at that stage. Also doesn't work for downsizing, you need to size up by at least 25% in most cases. Also if your house is leasehold, listed, or has any preservation orders in its boundary the developer will most likely not want anything to do with it.
Buying a new build as an investor
Firstly, if you're a cash buyer, it is worth asking if they are selling show homes off leaseback. A lot of these are cash only because the garage of the home is usually being used as an office or has not been built yet, so is un-mortgageable. Show home leaseback is the one when you're investing in a new build. How it works is you buy the show home, and the developer rents it off you until they are finished using it. The yield is normally at least 5%, you are getting a guaranteed rent every month with no issues, the house is being hardly used, and is being snagged and kept in pristine condition. Some developments are years and years long and by the time they hand the house over to you, it would have gone up in price so you could either sell or rent it out. You can normally get it furnished at the end really cheaply (bargain the furniture with them as it will cost them to get it all moved out and into storage so they would rather just leave it).
Another good thing about buying new as an investment, is the fact you don't have to have your property managed for the duration of the warranty. Your tenant just calls the developer to get any issues sorted and that will save you a lot of money. Its also brand new, so you shouldn't have many issues with it and it will rent out easier than older properties.
If you are looking at a buy to let mortgage, you will need at least a 25% deposit. If you have 50% you have more choice of lenders and will get a better rate.
The best time to buy a house as an investment is as close to the developers end of financial year as possible. (About 6 weeks before should get you the best deal) So the key is to find out the end of year month and they are putty in your hands.
I think that is pretty much it!!!!
If any one has any questions don't hesitate to contact me on here or send me a message on Instagram (lalas_sw) and I will be happy to help
AML
LaLa
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