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The process of buying a new build property follows a broadly similar path to any property purchase, but with important differences in timing. Developers set their own deadlines and expect buyers to move quickly. Here is what to expect at each stage.
Before visiting any development, speak to us first. We will assess how much you can borrow, what deposit you need, and which lenders suit your circumstances. Being mortgage-ready means you can reserve a plot with confidence. Many developers will expect evidence that you have spoken to a mortgage adviser before they will formally reserve a property for you.
Once you have found a development you like, you can reserve a specific plot. This usually requires a reservation fee of between 500 and 2,000 pounds. The reservation period is the window you have to exchange contracts, and it is often only 28 days. During this window, we submit your full mortgage application and push the lender for a swift decision.
Between reservation and exchange, your solicitor carries out legal searches and reviews the developer's title documents. This takes time, so instructing a solicitor at the same time as you reserve is important. We can recommend experienced conveyancers who are used to new build timescales and will not slow the process down.
On exchange, you pay your deposit (usually 10 percent of the purchase price) and commit legally to buying the property. If you pull out after exchange, you lose your deposit. From this point forward, the transaction moves at the pace of the construction programme.
Most mortgage offers are valid for six months. For new builds still under construction, this can be a problem if the completion date slips. We monitor your offer expiry date and arrange extensions with the lender well in advance, rather than at the last minute when options are limited.
Completion happens when the property is finished and your lender releases the funds. For an off-plan purchase, this could be months after exchange. We remain on hand right through to this stage, advising on any last-minute lender queries and ensuring everything is in place so you can collect your keys without a hitch.
Developers offer incentives to buyers, such as paying your stamp duty, contributing to legal fees, or upgrading fixtures and fittings. These are worth taking where available, but tell us about them before we submit your application. Lenders need to know about incentives as they can affect how they value the property.
Many national developers require exchange of contracts within 28 days of reservation. This is a tight window. It means your mortgage application needs to be submitted almost immediately after reservation, and your solicitor needs to work quickly too. We are experienced in managing this timeline. We submit your application on the day you reserve, chase the lender actively, and coordinate with your solicitor to keep everything moving.
To move quickly once you find the right plot, have the following documents ready before you start viewing:
Proof of identity, such as a passport or driving licence
Proof of address from the last three months
Payslips from the last two to three months and your most recent P60, or two to three years of accounts if you are self-employed
Three months of bank statements
Details of your deposit and where it is coming from
