FAQ's
We’ve put together answers to some of the most frequently asked questions when buying a new home.
If there is anything else you want to see added here, or you have any other type of enquiry, please do not hesitate to ask or let me know. I really value your feedback.
What is the process of buying a new home?
After your reservation fee has been paid, your new home is reserved for normally 4- 8 weeks before you are expect to exchange contracts (all developers offer different exchange timescales but the norm is usually 4-8 weeks). Throughout this period, your new home will be withdrawn from sale and it will not be subject to an increase in price. The reservation fee and deposit are then deducted from the price of your home.
Do I have to pay a reservation fee?
Most developers require a £500 reservation fee for all properties. However, this amount can vary depending upon the purchase price and the developer you are buying from.
How do I reserve a new home?
To reserve your new home, you must pay the required reservation fee and fill in the reservation agreement which sets out the key terms of your home. This will withdraw your property from sale and will not be subject to any price increase. Once this fee has been paid your new home is reserved for the agreed timescale before you are expect to exchange.
Can I purchase a home before it is built?
Yes is the simple answer, this is called buying off plan, most developers will offer this opportunity especially if you are a ready to go purchaser i.e. you have sold a property, you are a First Time Buyer or have no related property sale. you will be expected to exchanged contracts as per the terms of the developers reservation agreements. Please bear in mind a standard home usually takes 6 months to build so you may need to seek alternative accommodation between exchange and legal completion especially if you are in a chain
What happens to my deposit if I do not exchange within the agreed timescale?
Again, this depends on the developer you are buying from, in some cases you are in danger of losing any incentives that were included within the sale price and potentially having the reservation cancelled. I must stress this is the worst case scenario but one you need to be aware of, if you have done everything within YOUR control to adhere to the dates, but have been held up by 3rd parties most developers will be lenient and offer an extension, if you believe there is going to be a delay speaking to the developer at the earliest opportunity will ensure they are more lenient.
Is the property leasehold or freehold?
The majority of properties are freehold – unless they are an apartment, these properties will be sold leasehold. Before you reserve ensure you are aware of the tenure of the property
What is a freehold property?
When you first buy the property, you will become the absolute owner of the property and the land that it is built on. No lease will ever arise which means you will not pay ground rent each year.
What is a leasehold property?
Following recent press coverage most developers have increased their leasehold offerings to a 999-year leases at a fixed annual ground rent. There will be no future ground rent increases for the entire term of the lease. (check with the developer you are buying from what leases they are offering as the previous norm was circa 125 years, the length of the lease will effect the mortgage you can obtain as the shorter the lease the less mortgage options you will have)
If my property is freehold will I have any additional charges to pay?
In most cases especially if there are communal areas (areas for common use) then a small maintenance/estate charge may be added to your title, this will be outlined before you reserve your new home.
What sort of warranty will be provided with my new home?
Always check before reserving a property what warranty and guidelines the developer is building too. The vast majority of New Built homes are protected by a NHBC Build mark Warranty which gives you a 10 year structural warranty in, addition most developers include a 2 year warranty to cover all aspects of the homes (ensure before you reserve you are clear what the developer you are buying from offers)
Who are independent financial advisors/ mortgage advisors?
These are professionals who will offer independent advice on financial matters to clients and would recommend the most suitable financial product to suit your individual needs and affordability.
What is a mortgage valuation?
Prior to approving your mortgage application, your chosen lender will have your chosen property inspected and valued for mortgage purposes for a small fee. In most circumstances, your lender will insist on a survey before agreeing to give you a loan.
Please note that the value the lender puts on the property is a valuation for loan purposes only. The figure of this valuation may not be reflective of the open market value. You must also be aware that if you add additional extras to your home, the full value of these may not be reflected in the value the lender puts on the property.
What do I do if I cannot find a solicitor?
There are many solicitors/conveyancers who can work with you, At Meade New homes we work with an experienced panel of solicitors, so if you are struggling to find one, don’t hesitate to contact us and we can point you in the right direction.
What are land registry fees?
This fee is to register your ownership of your new home with the Land Registry. The fees you must pay are set by the government and will be outlined by your chosen conveyancer.
Do I need to sell my home before I can reserve a new home?
If you are reliant on the sale of your current home to finance your new home, then you must have sold your property before you reserve your home. This is to ensure contracts can be exchanged within the agreed period. If you have not sold your home and wish to buy a new build, many developers offer part exchange schemes or alternative offers and incentives to help speed up the selling process of your existing home.
What assisted purchase schemes are available to help finance the purchase of my new home?
Most developers offer a variety of schemes that can assist you in the purchase of your new home including Help to Buy, Forces Help To Buy, Key Worker, and Part Exchange schemes.
What happens at an exchange of contracts?
At this point, the sale of your new home becomes legally binding to both parties. A deposit is payable, and a completion date will be agreed, if the property has not had its final NHBC sign off/certificate an open ended date will be agreed usually with a 10 day notice period offered to complete. If the NHBC certificate is issued and the house is ready, then a fixed date will/can be agreed.
What is a legal completion?
This is where your dreams become a reality and you are the proud owner of YOUR home.
Who are the NHBC?
The National House Building Council, commonly referred to as the NHBC are the UK’s leading standard-setting body and provider of warranty and insurance for new homes. They work with the house-building industry to raise the standards of new homes and to provide consumer protection for homebuyers. This gives you added reassurance when you buy your new home.
What is a mortgage?
Most people will take out a mortgage, or a loan in order to purchase their house. A mortgage is a loan that is secured on your home. It is a legal agreement by which a bank, building society or outside party lends money at interest in exchange for taking title of the debtor’s property. There are many different types of mortgages available and you should speak to your Independent Financial Adviser (IFA) to discuss the best mortgage option for you.
Can I reserve a property before it is released for sale?
Again, this depends on who the developer you are interested in buying from as most will not sell a property unless it is released for sale. If there is a specific plot you are interested in let us or the onsite sales executive know, and we can then either see if the plot is ready for release or place your name onto a waiting list.
Do I need to make an appointment to visit the show home or sales centre?
We can arrange visits for you at a designated time ensuring all the proper safety measures have been implemented and adhered too.
What is the Consumer Code?
The Consumer Code for Home Builders (“the Code”) is an industry-led scheme which gives protection and rights to purchasers of new homes, ensuring that new home buyers are treated fairly and are fully informed about their purchase before and after they sign the contract. If you have any questions about the purchase process or quality of your new home, please contact the developer you are buying from in the first instance. If you do need more information about the Code, or their Dispute Resolution Service, please refer to their dedicate website. Most developers will have their own complaints procedure we would advise consulting that in the first instance, as they will be more then likely able to answer your question or resolve your complaint.