The advantages of new-build; The new-build homes market can offer a range of attractive incentives. Property law solicitor Claire Simmons has some tips.
IN the current economic climate, the new-build homes market may prove to offer some bargains for buyers as developers are often offering some great incentives to move their housing stock, particularly for first-time buyers.
The incentives are usually offered to facilitate a quick sale and can be up to 15% or more of the property purchase price.
The types of incentives offered by developers include having your legal fees paid or, if the property is a flat, having your service charge paid by the developer for the first year.
Some developers will offer to pay your mortgage for the first six months or provide a contribution towards removal costs.
Developers can also offer to pay your stamp duty or even provide you with holiday vouchers!
Some developers may offer a gifted deposit. However, it is important to realise that not all mortgage lenders will accept a gifted deposit and the general trend in recent years has been a limitation of a gifted deposit to 5% with other mortgage lenders not accepting them at all.
Developers often also provide some non-financial incentives which can make a new-build property a very attractive prospect.
Often, carpets and curtains can be included in the purchase price and the kitchens and bathrooms are already fitted which can save thousands of pounds. Sometimes, electrical and white goods are supplied.
It is important to be aware from the outset when you are buying a new-build property that all types of incentives, financial or non-financial, must be disclosed to your mortgage lender and that these could have an impact on the amount that you can borrow. Mortgage lenders now require developers to complete a "disclosure of incentives" form detailing all of the incentives offered, to ensure their decision to lend is based upon a reliable valuation of the property.
There are also other advantages in buying a new-build home.
For example, if you buy before the new-build home is completed, you may have some say over the layout of particular rooms and the facilities included in the property. There should also be almost no maintenance, such as old lead piping to replace, no flaking paint or crumbling pointing etc.
New-build homes are also more energy-efficient than older ones which means they are far cheaper to live in, and have lower heating bills.
A new-build home should also come with a 10- year warranty from the National Housing Building Council (NHBC) or other insurer which provides insurance cover for the structure of the property and fire-resistant materials, and fire and smoke alarms come as standard in new-build homes all of which can make a great saving. Claire Simmons is a Solicitor in the Property Department at Ward Hadaway Law Firm in Newcastle. She can be contacted at firstname.lastname@example.org or on (0191) 204-4183.
|Printer friendly Cite/link Email Feedback|
|Publication:||The Journal (Newcastle, England)|
|Date:||Sep 12, 2009|
|Previous Article:||A question of standards; House doctor Peter Fall asks what standards we should look for from tradespeople.|