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Buying a home is one of the most meaningful decisions a person will make. Whether you are looking to get on the property ladder for the first time, searching for your next move, or finding your forever home, it can be a rollercoaster of emotions.
We have put together a step-by-step guide to help keep you informed along your buying journey, from understanding your finances to planning your move. So pop the kettle on, open those biscuits, and keep on reading with full confidence that you’ll have all the knowledge you need.
Organising Your Finances
The first step of buying any house is establishing a clear picture of what your finances look like and the importance of getting them in order. Mortgage lenders need to know that you can not only afford to buy a property, but that you’re reliable and can make monthly repayments. A home is much more than its market value, with legal fees, moving expenses, insurance, and potential decorating costs to consider on top.
For non-first-time buyers, it’s important to work out your stamp duty costs before committing to a property. This is a tax that must be legally paid on homes over a certain threshold, which can add thousands to your purchase price in the weeks after completion. Many first-time buyers can benefit by having an exemption from paying this, so it’s worth checking what applies to your situation.
It’s incredibly wise to speak to a trusted mortgage adviser to explore the best lending options out there, while solidifying a mortgage in principle as early as possible, showing that you’re a serious and responsible buyer in the market.
Deposits and Schemes
A major factor in your affordability also stems from your deposit. Typically, a larger deposit of 10% and more can offer you the best rates on the market. However, there are many great schemes out there to help make the buying process easier. These can come in the form of 5% deposits, reduced stamp duty, shared ownership, Government funding, and individual developer incentives.
Choosing the Right Home and Location
Choosing a home is more than just acquiring an asset; it’s where you will spend potential years of your life, so the area you choose to live in must align with your lifestyle.
Consider the transport links, local amenities, schools, green spaces, the community, noise levels, and your overall outlook on living in that area. It’s also important to know if the layout of a home works for you and your routines. Is the home energy efficient? Does it include appliances? What is the garden like? These are just some of the questions that you are welcome to ask when viewing potential homes. A reputable developer will be able to offer you reassurance and guidance about any queries you have regarding a property and its area.
Reserving a Property
There are many different types of homes out there, from terraced townhouses to bungalows and cottages. It’s always good to view a range of different properties and keep an open mind. Contrary to belief, new builds come in different specs and sizes, from modern builds in residential areas, sophisticated city properties, to quaint stone homes in villages.
Next is the time to shortlist your favourite properties, possibly even viewing them a second time just to be sure. Then you’re ready to make an offer, which must be a figure that is comfortable within your budget. It’s always good to take your time in this phase, making a decision that benefits you overall.
When opting for a new build, you can go ahead and reserve your plot, which can come with offers such as fitted carpets, high-spec kitchens, and smart fixtures. This reservation locks in your position, and then you can move on to the legal processes.
Legal Processes and Exchange of Contracts
If you haven’t already, now is the time to instruct your solicitor. They will complete all searches, contracts, and liaise with the developer’s legal team on your behalf. It’s also essential at this stage to get a formal mortgage offer, either by applying directly with your existing mortgage in principle, or looking to see if there’s a slightly better deal on the market – and don’t forget to read the terms before accepting! It’s always wise to look at getting a survey done on the property, too, with new builds usually only requiring the lowest level of inspection.
This is often the longest stretch, and thankfully, for new build buyers, the fear of a broken chain is often negated, allowing you to experience the process stress-free.
Once contracts are exchanged and the deposit is paid, the purchase becomes legally binding! This is the stage where both parties are committed, and you can start planning to move with a confirmed completion date in place.
Warranties and Quality Assurance
New build homes typically will come with a structural warranty, usually lasting for ten years. This protects against potential defects, making sure the property is built according to recognised NHBC standards.
Maintaining a good understanding of the warranty and what it covers is important. Despite the number of quality inspections new build homes go through, it still provides additional peace of mind.
Completion Day and Moving In
Once the home is finished, and you are happy with the quality, you can then move in on your agreed-upon completion date. On the day, the funds will be released to the developer, and you will receive the keys. You will also receive the title deeds to your new space, so pop open the bubbly and get celebrating!
A great aspect of buying a new build is the ready-to-move-in finish, with brand new fitted kitchens, bathrooms, flooring, and painted walls waiting for your personal touch. So you can immediately settle in without messy repairs or upgrades.
Jargon Buster: Key Property Buying Terms
We understand that many of the words and phrases we use every day might be unfamiliar to those who don’t work in the property industry. That’s why we think it’s important to explain the jargon you might come across if you’re buying a brand-new home.
Chain
Several buyers and sellers are dependent on each other for the sale to be completed. You could find yourself in a chain if you have a property to sell before you can move into your new home.
Completion
The date the ownership of a property officially transfers to the buyer – there’s no going back! Generally, on the completion date, you get the keys to your new home.
Conveyancing
The legal process of transferring ownership of a property. Buyers must appoint a solicitor to do their conveyancing.
Deeds
The legal documents which prove who owns a property. They will ‘transfer’ into your name when you buy a new property. Keep them safe!
Disbursements
The fees and taxes a solicitor will have to pay out to other organisations, such as water companies or the Land Registry, as part of the house-buying process. Buyers will be charged disbursement fees on top of the conveyancing fee.
EPC (Energy Performance Certificate)
A certificate which measures how energy efficient a property is on a scale of A (very efficient) to G (very inefficient). Most new builds are rated A or B, compared to an average of D for older properties.
Freehold
The land the property is built on is owned by the occupier and guaranteed forever, meaning there is no ground rent to pay. Since 2019, all new builds have to be freehold by law.
Reservation Fee
A part or non-refundable deposit that will reserve a new home for a pre-agreed length of time, allowing the buyer to exchange contracts.
Service charge
A sum each household on a development, or within an apartment in a block, must pay each year for the upkeep of an area or a service that they have communal use of—for example, cleaning and lighting communal hallways or maintenance of shared gardens.
Snagging
When you buy a newbuild property, you should inspect it and report any small problems, or ‘snags’, to the developer ideally before you move in.
Stamp Duty Land Tax
A percentage of the total cost of a property which must be paid as tax to the Government. Currently, any property which is valued under £500,000 is exempt, as are first time buyers. For high-value properties, the rate is between 3% and 12%.
Valuation
A basic survey of a property to estimate its value. Mortgage providers will insist on this before agreeing to lend.
Warranty
An insurance policy which protects buyers of new homes from structural defects, usually for the first ten years.
Become Move Ready with Woodall Homes
Buying a home requires careful consideration and planning. At Woodall Homes, we take the time to navigate the journey alongside you, offering a helping hand and beautifully luxe homes across all our developments.
We build homes across Derbyshire, Yorkshire, and Nottinghamshire, offering premium features as standard with our high-spec finishes and detailed touches. If you’re considering a new build home, get in touch with our team today for friendly expert advice.
