John Doyle, Head of New Homes at OnTheMarket says: “Buying off-plan properties present unique benefits. The option to choose finishes and design elements allows future homeowners to create spaces that truly reflect their personal style.
“Purchasing off-plan also provides an opportunity to secure a home at today's cost, potentially saving buyers money if property prices rise. Attractive incentives from developers, such as staged payments and warranty protections, making the investment even more appealing."
The team at OnTheMarket have listed the seven steps to help you when buying an off-plan property:
1: Find the right developer
If you’re thinking about buying an off-plan property, you should begin with undertaking research to uncover developers that have properties within your budget, alongside their reputations by looking at previous builds and customer reviews.
Once you’ve found a reputable developer who has properties within your budget, you can start to choose your property.
2: Hire a mortgage advisor
As part of the planning process, you’ll need to hire a mortgage advisor who can confirm how much money you’re able to borrow. They will take into account your credit history, deposit amount, and income to decide this.
You’ll have to inform them that you’re buying off-plan to find a suitable lender with an off-plan mortgage, and once this is done, they should offer you a mortgage in principle.
3: Choose your plot
The next step is to choose your plot and reserve your dream future home. In most cases, you should expect to pay a reservation fee to secure the plot but this will likely be taken off the total property price in the end.
4: Take care of legalities
You’ll need to hire a conveyancer or solicitor to take care of the legal work, such as identity checks, mortgage contracts, and exchanging.
Your solicitor will receive the contract pack from the developer’s solicitor, including plans, specifications, and the building schedule. They’ll then conduct searches, such as local authority searches, and raise any queries with the developer’s solicitor.
5: Exchange contracts
Once legalities are taken care of, it’s time to sign and exchange contracts. This usually takes place within 28 days of reservation. A deposit (typically 10% of the purchase price) is paid at this stage, making the purchase legally binding.
6: Construction
The developer will get to work constructing your property according to the agreed plans. You may even be able to visit the site during this time and keep in touch with the developers for updates.
7: Completion
Finally, you can arrange a snagging survey to identify any defects or issues with the property before completion. The developer should address these before you move in. You’ll then conduct a final inspection to ensure all agreed works and snagging issues have been resolved.
Your solicitor will provide a completion statement outlining the final amount due, including any balance of the purchase price, legal fees, and stamp duty. Transfer the final payment to your solicitor, who’ll then transfer it to the developer’s solicitor. Once the developer receives the funds, you’ll receive the keys to your new property and you can move in.
