Helping you buy your brand new home
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Purchasing a newly built home follows a slightly different process to purchasing an existing property. The developer will issue an ‘Offer to Sell’ which will include conditions regarding the development and specification of the property. It will also detail any discounts or incentives (such as a payment towards LBTT or flooring). A new home is usually covered by a house builder’s warranty such as a Certificate from the National House Builder’s Council (NHBC) or a Professional Consultant’s Certificate. You will not be able to move into the new property until such time as the property has been passed by the warranty provider and also by the Local Authority to confirm it has passed all Building Control requirements and is safe for you to move into.
A part exchange (PX) enables you to trade in your existing home when you are buying a brand-new property. The house builder will use your existing home as part of the payment towards the new build. Once the transaction has completed and you have moved into your brand-new property, the house builder will then resell your existing home so you may have no estate agency fees to pay. Usually once you have agreed with the house builder that you will commit to a PX, they may take steps immediately to market your property through a local estate agent with your co-operation. However, you may not have a say on the level of offer accepted even if you are still residing in your existing property.
It is important to note PX is only available if the brand-new property you are purchasing is valued higher than your existing property.
It is very important to ensure you receive clarity on the house builder’s incentives and terms and conditions when purchasing a new build or arranging a PX as they can impact on any mortgage you need.