Buying A New Build Property - Zita Latham, Mortgage Broker, Surrey, UK

Описание: Buying A New Build Property - Everything you need to know!

Transcript:

It can be slightly different from a standard purchase. Buying a new build property, advantage of that is that you move into a property which is brand new. You don't need to start straightaway repairing things and painting walls, unless you prefer a blue wall to a white wall. But you don't have to straightaway start repairing and painting things like with a secondhand property. So this is definitely an advantage. I did live and I bought secondhand and new build as well, and it's definitely refreshing going into a property where everything is nice and new and shiny. However, be aware of the process and be aware how the purchase can work with a new build. So first of all, you can buy a new build which is already done already built, ready to move in. Or you might buy a new build off plan. The difference is that the off plan hasn't been built yet. You might look at a show home and you will know how it will look like, but actually it has not been built yet. you need to be very much aware and you have to find out what the timescales are, how long it will take, approximately. A mortgage offer is valid for six months. but with new builds, some lenders will give you quite a lot of space to extend. so when you speak to your mortgage advisor, mortgage broker and when you explain what property you're buying, it's a new build you have to explain, and hopefully your advisor will also ask you these questions. What are the timescales, approximately. So you might have to, or the broker might have to consider lenders who are much more flexible when it comes to new builds in terms of timescales and mortgage offer timescales. Now if it's already built ready to move in new build, then the builder developer might want to really speed things up and they might want to exchange and completion in a very short space of time. So in that case, again from a mortgage point of view and your conveyancer's point of view, they need to be aware of this, that it's going to be a really speedy transaction. So it should be a lender who works really fast, a lender who will give an offer very quickly, and a conveyancer who also perhaps really familiar with the development. Because if the conveyancer knows the development, and they already have a lot of information. They don't need to request those information again. Therefore, they can act really quickly. When you make an offer and your offer's accepted. You agree on the purchase price with the developer. They will most likely have to put down a deposit. It's normally, I don't know, it could be £250, £500, £1,000 something like that. But read the small print just to be aware whether it's refundable or non refundable. often it isn't refundable so be aware, of that. Now when you buy a new build and if the developer might say we are aiming for an exchange in six to eight weeks. So we talked about speed. It's really important that everybody who will be assisting you are on board and supporting you accordingly. When the property is ready for exchange and before exchange you should have a really good look around in the property and do a so called snagging survey. You can ask a professional to carry out this for you or you can do it yourself. But the most important is to look around and see if there's any unfinished work or anything wrong what you can see in the property and something which needs to be addressed before you exchange contracts. New build properties will have ten year warranties. The lender will want to know the warranty scheme. So when you buy the property, when you reserve the property, just also find out although that should be also on the paperwork. What will be issued to you and conveyancer as well as the mortgage broker to see what sort of warranty scheme they provide you with. So that's ten years for major defects and you should get a two year warranty for smaller issues and defects as well. The developer will probably will advise you or will tell you that they work with a certain financial advisor, mortgage broker or conveyancer. There's no restriction that you have to use the developer's broker or the developer's conveyancer. With conveyancer maybe, because if they know the development they can work really fast. But with the mortgage broker, absolutely it's not true that it will be much faster, the process if you went with their advisor at all because it's completely independent the mortgage from the actual development.

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Zita Latham Mortgages Limited is an appointed representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only. Registered address: Zita Latham Mortgages Limited, 45 Nork Way, Banstead, Surrey SM7 1PB. Registered in England & Wales under number 13666781

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