Although every purchase is unique, most new build transactions follow a similar process. In this chapter we will explore the timeline and process that you are likely to work through when buying new build.
By the end of this chapter you’ll understand:
✓ The journey for buying new build
✓ When different parts of the process will happen
✓ How the timeline is different from buying a second hand property
Estimated Reading Time: 10 minutes
Before you reserve a new build property, there are a few steps to go through to ensure you are ready to proceed.
Finding the right development –
Your journey begins by researching developments that suit your lifestyle, budget and future plans. When visiting developments, don’t just look at the show home. Take time to consider:
Remember, you’re buying into a community as much as you’re buying a property.
Speak to a mortgage adviser –
Before falling in love with a particular property, it’s sensible to understand how much you may be able to borrow.A mortgage broker can:
Having this information early can make your home search much easier.
Agreement in Principle – Before many developers will accept a reservation, they’ll ask you to obtain an Agreement in Principle (sometimes called an AIP or Decision in Principle).This gives both you and the developer confidence that your purchase is affordable.
We’ll explain Agreements in Principle in much more detail in the next section.
Reserve Your Plot – Once you’ve chosen your home, you’ll pay a reservation fee to secure it. The developer will usually:
At this point, you’ll usually appoint your solicitor and begin your mortgage application.
Reservation is just the first step in buying a new build home, once you have reserved, you have a team of people working for you to make it happen, whether that be us, your solicitor, the lender. Everyone starts work at once to help the process move smoothly.
Mortgage Application – Your adviser will now submit your full mortgage application. During this stage:
If everything is satisfactory, the lender issues your Mortgage Offer.
Legal Work
While your mortgage is progressing, your solicitor carries out legal work. This includes:
Once everything is ready, you’ll be asked to exchange contracts.
Exchange of Contracts – Exchange is one of the biggest milestones in your purchase. At exchange:
We’ll explain exchange and completion in more detail later in this guide.
Construction Continues – If your property isn’t finished yet, construction continues. During this period, you may receive updates from:
Many developers also invite buyers to visit the property as it progresses.
Notice to Complete – When your home is nearly finished, the developer serves what’s known as a Notice to Complete. This tells everyone involved that your home is ready and confirms the timescale for completion. Your solicitor and mortgage lender begin making final arrangements.
Completion – On completion day:
Congratulations!
After You Move In – Moving in isn’t quite the end of your journey. Over the coming weeks you’ll want to:
The time we experience delays in new build purchases are usually down to communication issues!
Using a broker that works regularly with a developer and the recommended solicitor can help progress your purchase efficiently. Don’t think of the stages as separate jobs, think of it as a team of people working together for you. The better everyone can communicate, the smoother your purchase will be.
Visit developments on different days and at different times!
A development can feel very different on a quiet weekday morning compared with a busy Saturday afternoon.
✓ Understand the different stages of a new build purchase
✓ Understand what to look for in a new build development
✓ Understand what questions to ask the developer when reserving a property
✓ How the timeline differs to buying a second hand property
Next Chapter →
Agreement in Principle
In the next section, we’ll walk through what getting an Agreement in Principle looks like for you!
