New Build Property

 

A new build property is a property that has been newly built or substantially redeveloped within the last two years, this can also include properties that are yet to be built – known as buying ‘off plan’

New builds will typically be in a better condition than an older property so have lower repair and maintenance costs, and will also usually be more energy efficient than an older property. You may also be able to purchase a new build home alongside one of the government schemes such as help to buy or shared ownership.

Lenders will typically ask for a higher deposit on a new build property than would potentially be available on an older property, with most requiring at least a 10-15% deposit to cover for any potential devaluation in the initial years.

One important factor in new build ownership is the warranty in place, nearly all mortgage lenders will need to see some form of warranty, the most common of which is NHB. This covers the first 10 years and it is easy to check if the property has been registered through the NHBC website

Some developers will offer incentives –such as having your stamp duty or legal fees paid to set their development apart from others. Lenders will take this into account when assessing the mortgage and usually as long as they don’t exceed 5% of the total purchase price there is no issue.