Buying a New Build In Phase 2 - coming out of lockdown

With the Government’s commitment to providing additional houses in Scotland and the rest of the UK, buying a new build is a very serious proposition for house buyers in Scotland coming out of lockdown. The advantages are:

1. You can observe social distancing rules by buying off plan.
2. You know the purchase price from the outset and it’s a fairly quick process to secure a purchase.
3. In most cases the price matches the value of the property so you have a clear budget for mortgage purposes and are aware of what deposit is required at the outset.
4. The legal process is straightforward and once your mortgage offer is issued, concluding missives is a fairly smooth process.
5. Once you have purchased, the majority of builders will, in addition to their own snagging procedures, provide a new home warranty which covers your home for a 10 year period .This means that the majority of snagging issues you might encounter in the early days have the backing of insurance cover.

However, like any property purchase transaction there are matters to be aware of which your solicitor can assist with, in particular.

1. Unless the new build is ready to move in when you reserve, the builders will not commit themselves in terms of the contract in providing you with a specified date of entry, only an anticipated date. The builders will also have a clause in the contract stating that if the anticipated date is not met, they generally have an extra period of time (whether it is three , six or even twelve months) complete the build .You might in that instance need to consider what other accommodation options will be open to you if there are such delays.
2. If the Development to which your new build forms part is fairly large, with plots being released in phases over time, you may not see an increase on the value of your property until the Development has completed. As a general rule it is best to wait at least five years before selling your new build property to try and achieve the best price on resale.
3. Be aware of your plot location and outlook and try if you can to watch a video of a finished home in the style which you have chosen. Make sure you pay close attention to what will be around your plot and in particular be aware of what aspect your property will face. It is very important in the Scottish climate to ensure at least some of your garden or windows are south facing!

The team at Gilson Gray are very experienced in dealing with the new build property market and please do get in touch with any of our conveyancers who would be delighted to provide you with further advice.

The information and opinions contained in this article are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.