Buying Off-Plan (P2)
Posted: 1st August 2019
Buying Off-Plan: A Comprehensive Guide Part Two
You have seen the show home and fallen in love with the idea of owning a new build home. However, unlike traditional home purchases, buying a new build isn’t quite as straightforward as putting down a deposit and waiting for the house to be finished. Many new build developments often require buyers purchasing a property off-plan to exchange contracts around 6 weeks after reservation; The commitment of an exchange shows the residential property developer that you’re keen and serious about your off-plan purchase and encourages them to proceed on with any interior changes or personal choices that you may have.
Buying a house off-plan can feel incredibly daunting. However, with the right research and a well-regarded house builder like Granville Developments, the process can be extremely exciting and deliver your ideal new home smoothly. To assist, Granville, residential property developers, have put together a list of questions you should look to ask your property developer before signing on the dotted line.
When Is the completion date?
When buying a property off-plan, you may be reserving the property for up to a year or more before you can move in. In some cases, this can cause an issue with mortgage providers as some mortgage offers expire after six months. This would mean you could find yourself paying a reservation fee and then may need to get another mortgage offer later down the line. Make sure to ask when your completion date is projected to be, along with the required exchange date so you can plan accordingly with your mortgage advisor to limit needing to apply for an additional mortgage. Many developers, including Granville Developments, will often only release properties to be available to purchase where projected completion dates are within six months of the release date. With that said if you see your perfect plot is marked as not yet released it is worth speaking with the sales team as some developers may discuss an early release to you.
Is the right protection in place?
This is the number one question most new home buyers often fail to ask. When buying off-plan, it’s vital to ask your solicitor to make sure the developer has the right insurance to safeguard against them failing to complete the development or the potential of the company going bust. A long-established developer often not only has a reputation but limits your worry. Granville Developments, NHBC registration underwrites the required 10% exchange deposit giving you extra peace of mind that should the unthinkable happen your money is secured.
Will you have any issues with access?
If your home is in the first phase to be completed, it’s highly likely that your road will still need its finishing surface. Before you move in, make sure to ask if there will be any access issues or disruption that could be caused by ongoing building works.
What other costs are involved?
Find out what elements of the property will incur extra costs, such as floorings and kitchen units. Make sure you’re aware of any extra budget you may need to account for before saying yes and always ask at every stage if something is included in the price you are paying.
Buying from a new property development can be stressful, which is why Granville, luxury property development, work to ensure the process goes as smoothly as possible. With over 40 years of expertise, our new developments in Essex and Suffolk are built to meet the expectations of buyers, with exceptionally high standards of construction, design and craftsmanship.
If you would like more information about upcoming developments, please call the Granville sales team today on 01376 574599.