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Property/DIY

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Original poster

Buying a new build off plan

18 replies

momentarylapse123 · 06/04/2023 16:21

This feels risky in a market forecast to fall but I like the houses, development and area a lot.

It's my post-divorce half of the equity and I don't want to make a stupid, costly mistake.

Is there something I should be doing or negotiating to protect myself or should I just leave it?

OP posts:

MarieG10 · 07/04/2023 07:18

New builds have a premium so there is a risk, but if you intend to stay then prob ok. Builders rarely negotiate price but often extras or stamp duty.

Just watch out for quality....some nightmare large builders and get it professionally snagged if you buy

PeonyFairy · 07/04/2023 16:59

Is it a known local builder?
There is a company near us that can't sell their houses fast enough because their reputation is excellent. They hold their price well because local people know they are good houses.
On the other hand I've noticed Barratts (AKA David Wilson) near us are reducing prices and offering inducements galore atm.

APurpleSquirrel · 07/04/2023 17:36

You can negotiate - you might get stamp duty paid or a contribution towards heating hills (that's what a few local ones are offering). You might also be able get internal upgrades like flooring, kitchen surfaces, units, or appliances. Turf on the back garden & an outside tap.
Basically you can ask but be prepared to be told no. We got a lot with ours but we were ftb & coukd move fast.

Frecklespy · 07/04/2023 18:13

Be careful, or at least aware, that buying off-plan can sometimes mean that the reality is not quite what you thought it was when you saw the 'plans'.

There is a 'tolerance' built into the contract regarding 'accurate' measurements. In other words some of the rooms may not be quite as big as the 'plans' suggested.

Sometimes, they change the position of windows or move the fences to accommodate other properties nearby.

Be aware that the proximity of other properties, parking arrangements or allocated parking may not be as spacious as the 'plans' suggested, particularly if there are walls/supporting columns in the way.

I know of someone who bought a detached house in a row of detached houses separated from each other by driveways between the properties. People were finding it difficult to swing into their driveways due to the narrow 'service' road and then couldn't get out of their cars due to the space between the houses being not wide enough to open the car door.

Make sure you read the 'plans' and accompanying clauses in the contract to make sure you understand the tolerances/leeway that the developer has to adhere to and those that you can't do anything about if within the accepted tolerance.

Original poster

momentarylapse123 · 07/04/2023 18:13

It's a very small independent builder. I can't find any reviews online and only two years of accounts registered.

It feels like such a gamble. Anything could happen between now and Christmas - with house prices, with this builder. I can't even look at a show home because the site is still a muddy field.

But the plans are interesting - nice development, floor plans I like. Feels like I could regret being cautious when they're built, snapped up and fabulous.

Thanks for helping. I'm buying by myself so nobody to discuss it with in rl really.

OP posts:

TeenDivided · 07/04/2023 18:17

At what point do you need to properly commit?
When we bought off plan we did

upfield reservation
reservation fee
deposit at exchange
completion

So we were only fully committed at the exchange time when the house was mainly built.

Original poster

momentarylapse123 · 07/04/2023 18:24

Deposit to reserve immediately with exchange in 28 days.

OP posts:

TeenDivided · 07/04/2023 18:33

I don't think I'd want to exchange on a plot of mud / just footings.
You wouldn't get a mortgage on that would you?
Also, would there be a definite or end stop completion date - what if they run late?

Original poster

momentarylapse123 · 07/04/2023 18:36

I don't need a mortgage but at the moment the completion date is very woolly. I suppose I'd have to firm that up before exchange.

OP posts:

PeonyFairy · 07/04/2023 19:12

Actually we did that 35 years ago.
Local builder had a plot of farmland, barns and a farmyard. He had plans for 3 barn conversion houses.
We bought off plan and paid a third upfront, and the rest in two installments. We sold our home and rented while it was built. We used the equity for part 1 and got mortgage for the rest.
Looking back it was a risk and we were naive but we ended up with a fabulous house which we still live in.

TomeTome · 07/04/2023 19:16

You’re a cash buyer in a falling market. Play hard ball.

Original poster

momentarylapse123 · 07/04/2023 20:59

TomeTome · 07/04/2023 19:16

You’re a cash buyer in a falling market. Play hard ball.

EA has said that they won't take offers. She said that as the development progresses the price will go up, and that the current price is the 'off plan/discounted' price. I've no idea if this is right or not but I've been watching the area for two years and they look expensive to me! I just don't want to make a mistake - I can't afford to. Never bought by myself before either and feel overwhelmed.

OP posts:

TomeTome · 07/04/2023 21:10

The estate agent works for the seller not the buyer. They do work on commission though so they get a % of the amount you pay. This means that while they are motivated to sell at a higher price dropping £5k on your offer may only mean they get £50 less. Personally I have never known any seller not open to offers but I haven’t bought off plan and frankly wouldn’t care if I offered £XXX,XXX andsmeone said “no thanks”.

queenofthewild · 07/04/2023 21:21

Lots of new build estates in my area are leasehold. Unless it's a freehold property, don't even look at it.

TeenDivided · 08/04/2023 11:23

queenofthewild · 07/04/2023 21:21

Lots of new build estates in my area are leasehold. Unless it's a freehold property, don't even look at it.

Leasehold for houses is a complete scam. I agree I wouldn't touch them with a bargepole.

Cupcakequeen75 · 08/04/2023 17:53

TeenDivided · 08/04/2023 11:23

Leasehold for houses is a complete scam. I agree I wouldn't touch them with a bargepole.

Show quote history

I thought the leasehold issue on newbuild houses (as apposed to flats) was now a thing of the past?

We have the management fee (£160pa) for maintenance around the development (until the LA adopt the verges etc) but that is widespread and completely different to leasehold.

TeenDivided · 08/04/2023 17:56

I too think/hope it is a thing of the past. It was a short lived thing from a bunch of chancers. Haven't bought this century to not up to speed.

AHugeTinyMistake · 08/04/2023 18:13

We're about to exchange on a new build bought off plan with a new developer's first ever build 🤣

Yes in some ways it's risky I suppose. But as it's their first development they are throwing a lot at it. Flooring & turf are not an extra, they're giving us a couple of upgrades for free and the standard fittings are really good quality.

We picked this one as there's more green space on the plans, houses aren't packed super tightly. It just looks a nicer place to live than some we've seen - most have the house right up to the edge of the pavement, hardly any front gardens to speak of etc whereas we have 10 feet in front of the house to our boundary.

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