Buying a property Off-plan means purchasing a “plot” on the development before the actual construction is complete. It is often a case of committing to an idea before seeing the final result. Your decision is made by seeing the initial plans of the property, the blueprints plus, the impression created by the artist of what the final building will look like. For regular home buyers, buying off-plan is sometimes the only sure way of securing a home in a market where the demand surpasses supply. Often Buy-to-let investors are particularly interested in such properties due to their high potential of giving returns on their initial expenditure/capital. In this article, questions to ask when buying property off-plan, we take a look at what to consider when purchasing off-plan.
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For a free initial discussion on how we can help you with the legal aspects of buying a property off-plan, get in touch with us today. We will review your situation and keep you regularly updated, discussing progress in a clear and approachable manner. Early expert legal assistance ensures no mistakes are made and also avoids the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.
Does the developer have a good reputation?
Before buying, you should research the builder’s previous developments to see if the homes match up to the pictures in the brochure. It’s also worth looking into customer satisfaction levels. Ratings from industry bodies can’t always be relied upon and as such, it is advisable to look at community groups and developer pages on social media to see whether buyers really are satisfied with the finished product.
Is there room to negotiate?
Developers will sometimes be willing to negotiate, particularly at the start of a project when they need to sell properties in order to fund the continuation of the development or alternatively towards the end of the project when they only have a few plots to sell. The biggest discounts on off-plan property tend to be available to investors and cash buyers purchasing multiple properties. But even if you’re buying a home for yourself with a mortgage, there’s often a deal to be done. Even if the developer won’t move on the purchase price, they may be willing to cover your stamp duty or throw in some fixtures and fittings. It can be trickier to haggle on Help to Buy properties as they’re often in high demand, but it’s still worth a try.
Where on the site will your plot be positioned?
Will there be any potential problems regarding access to your plot? If your home is going to be one of the first that’s completed, find out about any access issues and disruption that could be caused once you’ve moved in. Some developments have issues with so-called ‘unadopted’ roads, where the local council won’t ‘adopt’ a private road and take responsibility for its maintenance. In these instances, some homebuyers have faced significant management or service charges to maintain the upkeep of the roads and any green spaces.
What is included with my new home?
If you are looking to buy off-plan, it can be hard to envisage exactly what your new build home is going to look like. It’s a good idea to ask the developer to give you a list of everything the property includes. Will the garden be landscaped? Are white goods included? Having this list upfront will help avoid any misunderstandings later on down the line.
Is the property being sold as freehold or leasehold?
If you are purchasing a new build flat, the property is more than likely to be leasehold, meaning you will have a lease from the freeholder to use the property for a certain amount of time (usually between 90 and 999 years). If you are looking to purchase a new build house, there is a chance the property could be freehold so it is worth asking. There are plans by the government to change the laws regarding leasehold properties so it is worth speaking to your solicitor about the prevailing state of play.
What are the terms of the new home warranty?
The new home warranty is designed to give you peace of mind that should there be any problems with your home, they will be put right. The warranty typically lasts for 10 years, with the first two years covering work the builder has done, known as the ‘defects’ insurance period. Years three to ten are the structural insurance period. It is a good idea to ask your new build developer exactly what is and isn’t covered, and how long it is covered for.
Are there any restrictive covenants?
Restrictive covenants are often used by developers on large developments to prevent homeowners from changing how the property looks so that everything remains uniform. This could mean you might not be able to extend your property as you were planning, or you might have to obtain permission to put up a satellite dish. Therefore, it is advisable to ask what, if any, restrictive covenants are in place in advance, so you are aware of where you stand.
How do I know the property will be delivered as planned?
Buyers of off-plan property should always put proper wording into their contracts to protect them. Your solicitor can ensure this is done correctly. Additionally, all properties are inspected by local council inspectors to ensure safety and compliance are adhered to, based on architects drawings.
How we can help
We have a proven track-record of helping clients buy off-plan property no matter the size. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Residential Property Solicitors
It is important for you to be well informed about the issues and obstacles you may face during the transaction. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.
To speak to our Residential Property solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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