Deciding to purchase your own home is a daunting thought but, when the time comes, there is an abundance of New Build developments you can choose from depending on the location you wish to move to. You can find these on the internet, newspapers, New Home shows, word of mouth amongst others.
The first thing you need to do before reserving your new home is to ascertain your affordability. To do this you would need to speak to a financial advisor or mortgage broker, as they are more commonly known as. The advisor/broker can be someone you have dealings with already or you can go with the Developer’s recommended advisor/broker if you have had any contact with a Development Site. The advisor/broker will inform you of your affordability so that you can make an informed decision before proceeding with making an offer to buy your new home. This is also where your advisor/broker may be able to ascertain whether you can qualify for any Government schemes such as Help to Buy. You should then be provided with an Agreement in Principle (AIP) from a mortgage lender and be able to proceed with looking for or reserving your new home. You may also need to think at this stage whether you need to speak with your parents, grandparents or other relative about providing you with any assistance by giving you a gift of money towards your purchase.
You may already have a preferred Developer or site in mind before you meet with your advisor/broker. If not, now would be a good time to start researching. There may be various factors to influence your search, such as price range, location, type of property etc. Once you are happy with your choice and have had your affordability confirmed, you will be invited to make a formal reservation at the Site/Marketing Suite which is usually on Site.
The Sales Advisor will at this stage take various details from you such as your personal details, whether you are using any Government schemes, if you have any property to sell or are a first time buyer. They will also ask you whether you have appointed a Solicitor. If you have great! If not the site office usually have a recommended list of Solicitors that you could appoint. It is entirely your decision on who to appoint and there is no pressure on you to use a particular firm. It is important therefore that you undertake your due diligence on the firm that you wish to instruct to ensure the best and most confident relationship with your Solicitors during the process of your purchase.
The reservation form will also deal with any discounts or additions you are being provided with by the Developer. It will also confirm any financial incentives you have been offered such as contribution towards legal fees or stamp duty. These negotiations are usually dealt with between yourself and the Sales Advisor and noted on the form. Solicitors have no involvement in what is agreed. It is best therefore to have undertaken some research on what incentives are available, if any.
The reservation form will include details of the Developer’s solicitors, deadlines with respect to exchange, an estimate of any service charges/estate charges the property may be subject to and an estimated completion date. Please note the date on the form is anticipated and not an assurance of when you will complete your purchase, as it is more than likely that your property is not yet complete, or in some cases building works may not have even commenced.
The reservation form, although an agreement for you to purchase the property and the Developer to sell to you, is not a legally binding contract so if in the event you are unable to proceed with matter prior to exchanging contracts you are free to withdraw from the transaction. If this is the case, you may forfeit all or some of the reservation fee and be liable to pay for your Solicitors’ aborted transactions costs. You may also lose any money you may have paid for upgrades or additional extras to the Property.
Once you have provided your details to the site office you will be required to pay a reservation fee. This fee is taken by the Developer to ensure the property is taken off the market for sale. The fee is usually taken on the day and will form part of your deposit when you come to exchange contracts. The deposit will vary from anything from £500, if using the Help to Buy scheme to up to £5,000 if you are not using any schemes. How much you have paid is usually noted on the reservation form. Please note it is important for you to inform your Solicitor of your reservation fee as any fee taken over £2,500 must be reported to your mortgage lender, if any, before exchange and will require their approval of the same.
When the reservation form has been signed and dated and the fee paid, copies will be sent to the Developer’s solicitors and to your legal representative for the next steps to commence…
Meaby and Co have a specialist New Build Department headed by two very experienced and qualified Solicitors – Prabjoth Bassan and Senay Talat. Prabjoth and Senay have bought their passion of new build to their department and have National contacts which has seen their careers flourish over the years. Their dedication and excitement for helping buyers purchase their new home is evident in their work ethic and commitment to each client – they will be there for you along each step of the way and guide you through the whole process using their experiences and expertise – you will definitely be in trusted secure hands!
If you are looking to buy a new home or just want a chat about the process of buying a new build home contact Prabjoth or Senay at Meaby & Co for timely advice at firstname.lastname@example.org / email@example.com or call 0207 703 5034.
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Meaby&Co is authorised and regulated by the Solicitor’s Regulation Authority (SRA Number 447880) and registered in England and Wales with registered number OC322672 at 2 Camberwell Church St, London, SE5 8QY.