Buying Off Plan

UK Off Plan Buyer's Guide

  1. Buying Off-Plan – it can save you money and give you choice but ensure you see plans and drawings showing room heights and roof spaces that don't appear on floorplans. Check that every room can contain your furniture, look at sample fixtures and fittings, and ask whether plumbing, electrical and heating installations are easy to get at.
  2. Density – More residents mean more facilities. A Post Office and a pub require about 7,000 people living in the area to remain viable, while a school obviously requires families with children. Most vibrant communities contain over 40 homes per hectare; ask developers or estate agents about density in your chosen area.
  3. Build quality – a home may look good but will it be easy to maintain? Ask what materials have been used, whether they are renewable and how long they last, check on acoustic surveys indicating potential noise from your neighbours, and test the home yourself for sound travelling between rooms.
  4. Inside – homes look fabulous when new but check the details. Councils are rationalising refuse collection so is there room for recycling? What about space for new appliances? Will walls support shelves if you have big storage needs? Can the loft be converted? Is there natural light all day or just in the morning?
  5. Energy and light – This is more than just wanting south-facing windows, even though they reduce energy bills by providing heat. But if rooms contain a lot of glass are there trees, balconies or shade to prevent over-heating?
  6. Security – Locks and alarms are just part of the story. Security is enhanced by windows overlooking public areas, brightly lit communal areas inside and out, and well-maintained fire escape routes. And ensure those locks and alarms conform to police-approved 'Secured By Design' principles on www.securedbydesign.com.
  7. Outside – a garden or entrance needs a clear boundary between your home and public areas. Is there space for rubbish bins and when are they collected? Are meters stuck in an ugly box outside? Would communal areas be respected by your neighbours? Is there somewhere to put your bikes?
  8. Car parking – this must be carefully integrated and not dominating the street, allowing you space to wash or repair a vehicle. If you have a garage check it is wide enough for your car; if it is communal or underground, ask how it is patrolled and made secure. Think about visitors, too.
  9. The surrounding area – see the home at different times of day to check on traffic, the provision of good street lighting, and whether you would let your child walk on nearby streets. Is the area empty and soulless during working hours or is there a mix of residents?
  10. The future – People change. In the future you may want to give up the car, work from home, or have children. Can the rooms be modified for your new lifestyle? Will your neighbourhood contain the shops, transport, parks and facilities you will need 10 years from now?

Quick checklist

Area

Type of property

The job of a solicitor or conveyancer comprises the following tasks:

Conveyancing may well take longer than you had imagined, but don't be tempted to rush matters. Your house or flat is probably the most expensive thing you will ever buy, so it is important to be sure there are no loose ends.

Most lenders will be prepared to accept your choice of solicitor, as most experienced solicitors will have acted for the lender in question before. However it can be best to check whether the solicitor is registered and recognised by one of the following two agencies before you get too involved. If they are this is likely to make the conveyancing process much simpler. To check out your chosen solicitor or conveyancer, just contact:

The Law Society tel: 0870 606 2566

Or:

Licenced Conveyancers Association tel: 01245 349 599

Conducting a survey

Once your offer has been accepted, a survey is required to assess the property's condition and value. Your mortgage lender will require at least a basic valuation before allowing your loan to go ahead.

In almost every case, we recommend strongly that you get a more detailed report on the condition of the property to protect not only your lender's interests, but your own as well. Make sure that the surveyor you use is a member of the Royal Institution of Chartered Surveyors or the Incorporated Society of Valuers and Auctioneers.

There are two kinds of surveyor's report beyond the basic valuation:

1) A House Buyer's Report comments on the condition of only those parts of the property which are easily accessible or visible. The surveyor will recommend any further investigations he thinks are necessary – for example if he thinks the wiring needs checking or there is the possibility of some structural problems.

2) A Full Structural Survey involves a more extensive investigation. A full survey is more expensive than a house buyer's report, but should tell you much more about any work that may need doing on the property if you buy it. Full surveys are recommended in many cases, particularly if you are buying a property that is more than 100 years old or the building is more than three stories high.

When you view the property yourself, look out for any signs of problems like cracks or damp patches so you can point these out to the surveyor later for him to inspect properly.

When you set out on the home-buying process, you should budget for the cost of more than one survey. You might find the surveyor's report on your first property uncovers serious faults (such as subsidence or rot) which mean you want to withdraw your offer. Even if there are no problems with the property itself, another bidder could step in with a better offer at the last minute.

Either way, you will have to start the whole process again, and that includes organising a survey for the next property where your offer is accepted.

Where the survey does reveal serious problems, you are free to withdraw your offer. If the problems can be fixed, you may be able to use the survey results to negotiate a reduction in the sale price to compensate you for this extra expense.

Exchanging contracts

With your survey safely completed and the lender happy with it, you can move to the stage of getting a formal mortgage offer from your chosen lender which will detail all the conditions of the loan.

By this time, your solicitor should have a draft contract ready for you and the seller to sign. Once you have signed this contract, there is no going back, so be very sure you are happy with all the sale arrangements before you commit yourself.

Typically at exchange (unless exchange and completion are on the same day), you will have to put down a deposit of 5 or 10% of the purchase price. You also need to make sure that the building is insured as you are now legally obliged to buy it (your solicitor will help make sure that this happens).

Check that:

The last point is very important. For example, there might be some doubt as to whether the property's existing carpets are to be included in the sale price. You need to get this sorted out in writing before you sign the contract.

When you have signed the contract, your solicitor will deliver it to the seller's solicitor in exchange for the contract the seller has signed. From this point onward, both you and the seller are legally committed to the deal.

Completing and moving in

All that remains after exchanging contracts is to pay over the money needed to buy the property, less any deposit already paid at exchange, on the agreed date. Your solicitor will get the mortgage funds direct from the lender and the remainder (if any) from you, and then pass it all on to the seller's solicitor. Once payment has been confirmed, you can collect the keys to your new home from the estate agent.

As soon as you know your completion date, book a removal firm if you need one and make sure they are prepared to provide the level of service you need, e.g. pack your belongings as well as transport them.

Allow yourself plenty of time to sort out all your things before the removal men arrive. Decide what is going where in your new home and label each container with its contents and the room where you want it to go. Remember to pack important items - such as the kettle - where you will be able to find them quickly and easily.

In the last week or two before the move, contact the companies that supply your gas, electricity water and telephone services to let them know you are moving out (if you are currently renting or own a property). Ask them to arrange for the meters in your old home to be read so that you do not end up paying for services the next occupant uses. You may also want to ask the Post Office to redirect your mail for a while. You will also need to let the Council know you are moving so that you are not liable for Council Tax payments at your old address.

Co-ordinate with the estate agent and the vendor to make sure that the meters are also read at your new home.

Once you move in, ensure that you carefully file away all the important information you have gathered (i.e. addresses and contact details for the utilities and the Council, the original estate agent's particulars for the property and your mortgage details). They will come in handy should you ever decide to go through the whole process again!

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