New Build Homes in Essex

New build homes are the marmite of the property world – loved by some because they’re new, polished. fresh and modern, hated by others due to the potential for build issues and lack of character. Personally, I love marmite (bet you never knew that about moles) but when it comes to new build homes in Essex, or anywhere else,  I’m totally on the fence (or under it anyway). What I do know, is that if you’re looking for a fresh new home, and want some help with the financing, or maybe you want to part exchange on new build homes in Essex; then you should read our guide and decide for yourselves!

Why Essex? Well, I live here and in my opinion there’s no better place to live – close to London but with beaches; cosmopolitan cities leading into beautiful rolling countryside…

If you feel the same, and want to buy a new build home in Chelmsford, Brentwood, or anywhere else in Essex then fear now, let The Property Mole guide you through the pitfalls and stop you making mountains out of molehills (see what I did there?)

Step 1

First things first, you need to find out what your budget is. I know people house hunt without knowing this, but it’s just a recipe for heartache – you will fall in love with something you can’t afford without selling your firstborn and then nothing else will measure up. We’ve all done it, and you will too – at least now I can say I told you so!

So your first step is to do a bit of homework and find an independent mortgage broker to talk to. You may be tempted to apply for a mortgage online and save the middle man fees, but this is a bit of a false economy as a good broker should be able save you more than they cost.

They’re going to ask you for 3-4 months of payslips, details of your savings and expenditures and any debts you have. Be honest. Fudging the figures at this stage may mean you think you have more to invest than you do and that just causes all kinds of problems later.

If you’re buying with someone else (and let’s face it, most people are nowadays) they’ll need to do the same, and you should meet your broker together.

With your broker you can agree a ‘mortgage in principle’ this gives estate agents and developers the confidence that you will have the funds available if you do put an offer in. It doesn’t guarantee the mortgage, but if you’ve been honest and nothing changes, it’s a pretty good bet. In a very fast moving market you may not be able to view houses before you have this in place and you won’t be able to put an offer in.

 

Step 2

So you have your broker. You know how much you can borrow. Now you need to find your perfect new build home.

With the market at the moment, houses and apartments in Essex are selling really quickly (see these property industry statistics). If you have a house that you need to sell, then you’re going to be in a chain unless you want to sell first and rent while you find your next place (if a chain is a problem, then yu can also look into doing a part exchange on new build homes in essex)

Don’t be scared of calling estate agents in essex as well as looking online – often they have properties that don’t ever make it to the website , and if they know what you’re looking for, they’ll think of you when new plots become available.

New build developments in Essex release plots in stages, so ask the developer or your agent what is coming up if you find a place you like and there aren’t any currently available.

 

Step 3

Get a solicitor. The developers may recommend one but you don’t need to use them and there should not be any pressure to do so. Recommendations are a good idea here so ask your friends and family if they have used any recently. They don’t need to be local to the place you’re buying (or to you) and they should give you a breakdown of costs upfront.

 

Step 4

Get your mortgage agreed. Your broker will explain the process to you, but it effectively means your lender will confirm your financials and check that the house is what you say it is! For an off plan development they’ll look at the plans, for something that is already built they’ll get a home buyers survey arranged. If you want, you can get a more detailed survey done yourself too, but you’ll need to cover that cost yourself.

 

Step 5

Pay the deposit. This is where buying a new development differs from a traditional purchase. You’re putting down a deposit and exchanging contracts on a property that may not yet be finished.

This means that say your new house is valued off-plan at £400,00. You pay 10% as a deposit and exchange contracts saying that you promise to pay the remaining 95% on completion of the build which is going to be in 8months. 8 months later, the housing market has slumped and the house is only valued by the bank at £350,000. You still owe the original amount and your house is worth less so the bank won’t lend you what you need, so you would have to drop out of the contract at lose the deposit.

This is obviously an extreme example; the housing market may also go up, or more likely, it will alls stay similar enough and you’ll move in. However, be aware and make sure your solicitor is experienced in new build purchases.

New build warranties such as NHBC or Premier Guarantee will normally protect a full deposit against builder insolvency although in some cases it will only cover the first 10%. Furthermore, if the completion date on the build is ‘unreasonably’ delayed, so by more than six months, then you have the right (under the Consumer Code for Home Builders) to withdraw from purchase and claim a full refund.

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Another option is to part exchange on new build homes in essex. This follows the same process as above, but the developer of your new home buys your current home, removing the ‘chain’ problem that we mentioned above.

Advantages:

• No chain
• No agents fees
• Less admin and greater security

Disadvantages

• You may not get the full market value

It’s up to you whether you think it’s worth t, but if you’re struggling to sell, or the logistics are proving a nightmare, it’s definitely worth thinking about.