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buying a house

New builds

The process of buying new builds can be very daunting for the buyer, as there are lot of matters that need to be taken into consideration and addressed. Whilst we do throw a fair amount of documents in our client’s direction, we ensure that you also receive a fully comprehensive report, so that it is crystal clear to you what you are getting. Below is a look into the main areas that need to be addressed.

New Builds and the NHBC certificate

A NHBC certificate warrants that new builds have been built to an approved standard by the developer and comes with a maximum of 10 years guarantee. If you don’t have the above an architect certificate will suffice. We ensure that the certificate issued meets criteria and if not this certificate, the equivalent will be accepted by all other lenders.

New Builds and the Section 38 agreement

The section 38 agreement involves the developer and Local Authority and ensures that the roads are developed to the correct standard, so that the Local Authority is able to adopt the road once finished. At the time that our client is acquiring a property, we will ensure that the roads will be fully completed at some stage.

New Builds and the Section 104 Agreement

The section 104 agreement works similar to section 38 but takes into consideration the drains of the development and on this occasion involves the developer and Water Authority.

B – Other areas to take into consideration with new builds:

  • Private roads and drains – in some cases the developer will not enter into agreements and then it will be the buyer’s responsibility to maintain roads and drains following completion. In this case we will need to ensure that the developer can insure against the risk of them going bankrupt before the roads and drains are 100% completed.
  • Freehold managing agents – recently, there has been a trend where developers will set up management companies that all the residents of the estate will join, in order to maintain communal areas. There is an annual service charge that residents will be expected to pay.
  • Exchange on notice – even though this is rare, there has been occasions where on exchange the property may not be 100% built. Once we are satisfied with all documents provided and ready, we will only exchange on the condition that as soon as the build has finished they will service notice and give us 14 days to complete.

To get the ball rolling with buying a house, get a quick, instant conveyancing quote today: CLICK HERE

Other topics related to new builds:

Click on the links below to find out more about:

Conveyancing process

Selling a house

Right to buy

Unregistered properties

First-time buyer

Leasehold property or freehold property?

Shared ownership

Buying a house

Buy to let

Remortgaging

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