Beyond The Show Home

20 May, 2025 5 minutes reading time

Essential Tips for Buying a New-Build Property

Purchasing a new-build home presents a world of exciting possibilities, from selecting your ideal decor to being the very first occupant and enjoying the peace of mind that comes with fewer immediate repair concerns and lower maintenance costs. However, navigating the new-build market does pose some unique considerations for the buyer.

Buying Off-Plan or In-Construction

The allure of buying a new build off-plan can be significant. Seeing your chosen plot evolve from outline site plans to reality is exciting. Yet, it’s crucial to remember that plot location, finish, and even size variations can occur.

Only when the developer has completed the property, or it is at an advanced stage of construction, can you see these features on site. You can ascertain what furniture will fit, whether the outdoor space meets your expectations, and so forth. Thus, remember, when purchasing off-plan, to thoroughly review the property’s specifications and ensure they align with your current and future needs. For instance, are you planning to expand your family, or are you nearing retirement and the property may seem too spacious in a few years?

Additionally, consider envisioning the surrounding facilities and the overall mix of properties within the development. It is crucial to research the developer online. Independent reviews are an excellent starting point, and be sure to examine the Home Builders Federation New Homes survey results. Finally, request a realistic completion date for the entire development from the developers. If construction persists for an extended period after you move in, be prepared for the realities of living on an active building site.

Conveying a Newly Built Property

New-build properties frequently involve extra considerations, such as ensuring compliance with building regulations, verifying construction quality, reviewing warranty terms, and examining agreements with the builder or developer.

Completion dates can be more unpredictable because construction timelines frequently encounter delays. This affects the scheduling of the conveyancing process, necessitating careful negotiation and planning to coordinate the property’s legal and practical completion.

New-build properties frequently incur extra fees, like infrastructure charges and amenity contributions, all of which need careful consideration during conveyancing.

Overall, new build conveyancing requires a more comprehensive examination of legal documents, stringent compliance checks, and heightened awareness of issues specific to newly constructed properties. This results in a more intricate and nuanced process than conveyancing for an existing home.

Decoding Your Buyer’s Contract

You must dedicate ample time to read and thoroughly understand your buyer’s contract. This document may contain crucial clauses that could affect your financial obligations and restrict future alterations to your property or its grounds. Ensure you check the following:

1. Shared Facility Charges

You may need to contribute a service charge towards the upkeep of shared facilities, such as communal gardens or private roads. The developer must disclose these charges, and your legal documents should clearly outline them. Ensure you are fully aware of these potential additional costs, as you will need to factor them into your ongoing budget.

2. Type of Tenure

The tenure of your new home is a vital consideration. If your property is leasehold, you will likely be responsible for ground rent and a service charge. Leasehold status also generally means you will need consent from the landlord or management company before making significant alterations or subletting your home. Again, ensure you have thoroughly budgeted for these ongoing costs of ownership.

3. Drains, Sewers, and Roads

For new builds, the developer usually constructs the infrastructure serving the property, including roads, drains, and sewers. After a specified period, the Local Highways Authority and Water Authority should “adopt” responsibility for maintaining new roads or sewers, unless the contract stipulates otherwise.

An experienced lawyer plays a crucial role in ensuring that the necessary agreements are in place for this adoption and that they allocate funds to cover the cost of works should the developer cease trading. Without appropriate contracts, you, as the buyer, may be liable for maintenance costs until adoption. If the contract explicitly states that these services will remain private, you must be fully aware of the potential cost implications and liabilities involved.

Choosing the Right Ownership Structure

If you are purchasing your new build home with a partner or spouse, it’s essential to communicate this to your solicitor. They can then advise on the most suitable ownership structure: joint tenants or tenants in common. The documentation submitted to the Land Registry to register your ownership will reflect this choice.

1. Joint Tenant

Often chosen by married couples or cohabiting couples, this structure means both parties own the property in equal shares. Upon the death of one owner, their share automatically passes to the surviving owner(s), regardless of any Will provisions.

2. Tenants in Common

This option allows for unequal shares of ownership, which can be important if contributions to the purchase price vary. Importantly, with tenants in common, you can bequeath your share of the property to beneficiaries under your Will. 

Our Advice

Purchasing a new property is often the ideal (and exciting) choice. While the process can be complex, if you engage the support of an experienced legal professional, they will assist you in resolving any issues, meeting your lender’s requirements, and keeping your purchase on track. Please contact us if you’re looking for legal advice on your new-build purchase. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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