Reservation
Buying a new home from a developer or builder is different from buying a second hand
home. Once you have chosen your new home you will normally be required to pay a non-
Once you have reserved, the clock is ticking! It is not uncommon for many builders,
especially the larger well-
The following sequence assumes you have either sold your existing home, have a part-
Be wary of signing up with anyone suggested by the house builder. If their sales staff recommend a solicitor, mortgage broker, surveyor or estate agent they are probably getting paid for the referral! It is ALWAYS best to keep everything separate and in your control in property transactions.
Week One
The sales advisor can sometimes provide you with a list of local solicitors who may already be familiar with the development. Some of these may have even already carried out Local Authority searches to save time. Your solicitor will act on your behalf, looking after your best interests throughout the purchase of your new home and the sale of your existing home should you have one. Once you have made an appointment to see your solicitor you will need to stress the importance of meeting the builder’s exchange deadline. Confirm that you have funds available for the deposit on exchange of contracts. Take with you the reservation form and a cheque for the search fee.
It is most important to get independent financial advice as the mortgage market is very competitive and there are various products available. Your IFA will be able to advise you which product is best for your personal circumstances and requirements.
Make an appointment to see Building Society, Bank or Mortgage broker. You will need to take with you:
1. Six month’s payslips
2. Proof of residence……………… Council tax or utility bill
3. Proof of identity………………… Driving licence/ passport
4. Proof of age…………… ………… Birth/marriage Certificate
5. If living in rented………………… Landlord’s name and address
6. Details of any loans
7. Bank details and six month’s previous statements
8. Cheque for arrangement and valuation fees
9. Details of any endowment policies
10. Solicitor’s name and address
Week Two
Check the progress of the written mortgage offer
Has the survey been done? If not, chase the mortgage provider or your broker. Advise solicitor of mortgage offer as soon as it is received.
Week Three
Check the progress with your solicitor
Has the search been received? Has the mortgage offer been issued?
Organise funds for the deposit for exchange of contracts (typically 10% of purchase price) Building Society cheque or bankers draft.
Week Three/Four
Arrange an appointment with your solicitor to go through the draft contract and sign.
Take your deposit for exchange of contracts.
Your solicitor will make all necessary enquiries to obtain all information concerning all factors that may affect your new home before exchanging contracts. Once exchanged, the property transaction is legally binding and the status changes from 'Reserved' to 'Sold'. After you have exchanged contracts, ask your solicitor to send you your NHBC Buildmark documents.
Arrange a professional removal company
Many people hire a van and move themselves. However if you have a lot of belongings, it is well worth paying for professional removers. Get at least three quotations, ask for personal recommendations from friends and family and remember that the cheapest company isn’t always the best. Like everything else you get what you pay for. Make sure you request enough boxes of varying sizes for all your belongings and check that your insurance covers your contents whilst they are in transit during the move. Also check that your removal company has adequate insurance and is a member of the British Association of Removers. It is probably easier (and less expensive) to do the packing yourself. Consider starting this several weeks ahead of the move. Do not forget the loft, the garage or garden shed.
Some builders allow you to select your personal preferences from the ranges available for kitchen units, worktops and wall tiling for example, on or near the time of reservation. However, many builders do not act on these until after exchange of contracts, especially if the selections could be contentious should the sale fall through. Now is the time to firm up your selections and to personalise your home, selecting any optional extras you would like the builder to carry out, thus avoiding the inconvenience of having additional work carried out by tradesman after you have moved in.
Instructing a solicitor Selections and extras
Arranging a mortgage Arranging removals
Exchanging Contracts Legal Completion
The procedure when buying a new home differs from that normally encountered with buying older occupied homes. Most house builders will have a strict time limit by which time they require you to "Exchange Contracts". There are also selections and choices to be made and decisons about any extras that are available as well as the construction completion date to be finalised.
New home buying procedure
What to look for when buying a new home:
Considerations when buying a flat
House builder’s optional extras
Buying a new home in a recession
What you should know about timber frame