Undertaking to build your dream home is a big deal, one that holds the promise of a bright future and provides the satisfaction of owning your own square foot on God’s green earth. Since you have finished building your castle in the air, it is time to plan out your new house construction by following the laid down process of buying your new build;
Before you start looking at properties/developments you are interested in, the first thing you want to do is to seek guidance from a specialist mortgage adviser so you know how much you can borrow. This will help you stay within a particular budget.
As a first-time buyer, you can get a mortgage in principle from a lender, an agreement asserting that the lender “in principle” will provide you with a mortgage for a particular sum. You can present this to a developer as proof that you can afford the development.
Getting the Finance for Your Business – there are two options available to you if you need financing for your New House Construction. These are schemes backed up by the government to mitigate house shortages in the UK.
You can get up to 40% of the total value of the property you wish you purchase in Greater London from the government. All you need is to make a 5% deposit and a mortgage of 55%. This scheme means all the money you need to own a property is just a 5% deposit of the total value. With this scheme, you have access to higher mortgages and gain the trust of lenders. What this means is that;
Government Lending – 40%
Your deposit – 5%
Mortgage – 55%
Be buying property for the first time
The new construction must not exceed £600,000
Provide a minimum deposit of 5%
Live in the building and not let it out or use it as a secondary house
You can get up to 20% of the total value of the property you wish you purchase in England from the government. All you need is to make a 5% deposit and a mortgage of 75%. This scheme means all the money you need to own a property is just a 5% deposit of the total value. What this means is that;
Government Lending – 20%
Your deposit – 5%
Mortgage – 75%
You need to look for the development that suits you. If you plan to finance your development using any of the schemes, you want to ensure that the development is taking part in the government scheme. Ensure to ask the right questions.
You can read our post on the questions to ask when buying a new construction home. Once you are settled on the pricing, you will be visiting new house constructions so you can see what your home will look like for off-plan buying or a marketing suite.
Where you see a development you like, the next step is to discuss what you are offering. Please note that your offer is not necessarily the total asking price. If the negotiation goes smoothly and your offer is accepted, you are required to make a non-refundable deposit that will be deducted from the property’s total price.
At this stage, appoint a conveyancer solicitor to handle the legalities of the purchase. Your conveyancer solicitor will check to ensure you get the best deals, including negotiating the completion date. While this is going on, now is a great time to apply for a mortgage
Buying a new house construction means that you will exchange contracts in the earliest part of your discussion with the developer after your deposit has been paid.
After the long wait, you can have your home.
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