Last year there was a 4% increase in the number of New Build properties completed in Scotland, compared to the previous year. As such, it is no surprise to learn that New Build properties are becoming an increasingly popular choice.
Before purchasing a New Build property, it is important to consider the following issues:
·A reservation fee will be charged at the point of reserving the property, and a deposit, at the time of concluding missives. These payments can be non-refundable if the transaction falls through at a later date. You must also have the funds available to pay the deposit (prior to the utilisation of the loan funds).
·If you are purchasing “off plan” (ie the house has not been built yet) then imagination vs reality may conflict. It is important to agree the house type, legal boundaries and the specifications of each room before the conclusion of missives. It is also important to clarify from the offset which fittings and fixtures are to be included in the price and which are not (sometimes flooring or turfing packages are additional extras).
·During the process, you will only be given an anticipated date of entry, which can be postponed due to a variety of issues and can be difficult in practise.
·Although the property is new and will be passed as fit for habitation by the council before the date of entry, there may be numerous “snagging issues” which may not be resolved straight away by the Developer.
·A New Build property can depreciate on entry - especially if buying in a large Development, where there are still brand new properties available.
·If the Development is not complete, there is a possibility that you may feel as if you are living on a building site until the same has been completed.
That being said, purchasing a New Build property can be appealing for a variety of reasons:
·Nobody else has lived in the property before.
·You may be given the opportunity to select specific fixtures and fittings to ensure that the final property’s appearance caters to your own specific taste. The Developer may even allow negotiation for the price to include certain upgrading packages (such as specific flooring or gardening packages).
·Other incentives may be offered by the Developer, such as discounts in the price, or payment towards Land and Buildings Transaction Tax. Some Developers may also enable the purchase of a New Build by agreeing to take your current property (if you have one) as a Part Exchange against the price - avoiding the need to place your current property on the market, prior to purchase.
·The property is brand new so redecoration and/or upgrading costs will be nominal for the first few years.
·New Build properties tend to have lower running costs due to being energy efficient and will comply with up to date building regulations and fire safety regulations.
·There will often be a warranty which insures the property against structural problems for a specific number of years.
If you are considering purchasing a New Build, please contact one of our specialist residential conveyancing lawyerson 01620 892138, who will advise you through the process.
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