Is a New Build Property Right for Your First Home?
Posted: Friday October 6, 2017
Firstly- what is a ‘new build’ home?
This may seem a very silly question, as, of course, new build housing is new housing that has just been built.
However, because there are a different set of lending rules for new build housing, there are also quite specific definitions from mortgage lenders about what is defined as a new build property. For example, housing that has been converted can also be considered a new build.
The definition does vary according to lender, but typically the official definition of a new build is:
- Property built or converted within the last 12 months
In the case where the build was completed over 12 months ago, new build policies still apply when:
-The property has not been lived in (or hasn’t been lived in since a conversion was completed).
Why should I choose a new build for my first home?
There are many reasons why a new build home is a fantastic choice for a first time buyer.
First time buyer schemes for new builds
One of the main reasons many first time buyers are choosing a new build for their first home is that the government are championing new build housing to help solve the affordable housing shortage in the UK. To encourage the purchase of new build homes, they have put the ‘Help to Buy’ scheme in place.
There is a lot of confusion about the Help To Buy scheme, but the section of the scheme that is only available for new build properties is the ‘Equity Loan Scheme’.
The Equity Loan Scheme is available to both first time buyers and those who already own a home. The price of the house must be under £600,000.
Under the Equity Loan Scheme, if you have at least a 5% deposit you can borrow 20% of the purchase price of the house from the Government with no interest for the first 5 years.
If you live in London, you can borrow up to 40% of the purchase price interest-free.
This means that you will be able to get a 75% mortgage with just a 5% deposit – providing you with a much better rate and more manageable monthly repayments.
This scheme is available until 2021.
Other benefits of new build properties
There are many other benefits to buying a new build property. Some of these are as follows:
Be the first to live in your home
You are the first to live in your home, meaning you can make it your own from the day you get the keys. You don’t have to undo any of the previous owners’ questionable interior design choices, and you walk into a blank canvas to create your perfect living environment.
Fittings & appliances can be included
If you are buying a new build off-plan, many developers have a variety of internal fittings & appliances packages for you to choose from. This means you can choose details such as your floor tiles, carpets, your kitchen worktops and even your blinds before you move in.
Our new build properties are also fitted with high quality appliances, all carefully chosen to complete your perfect home.
No repairs or renovations
With a new build there is no need to carry out extensive, expensive, and stressful repairs because the property has been freshly developed to the highest standards. You don’t have to worry about saving more money to fix any issues with your home, and nor do you have to live with disruption whilst you make the necessary repairs. Instead, your home is your sanctuary from the moment you move in.
All new build homes are built to the very latest environmental standards. They emit more than 60% less CO2 emissions than older homes do.
Save money on your energy bills
New builds are also around six times more energy efficient than older homes. This is not only beneficial to the environment, but a more energy efficient home also means that you will see a big difference to your energy bills too. A win-win!
Good property developers such as Oriel use sound insulating materials to limit noise, so your home will be your sanctuary.
Safety & security
New build homes are usually fitted with a variety of safety and security measures such as smoke alarms, locks and double glazing. The latest fire resistant materials are also used. These can lower your insurance premiums and give you peace of mind that you and your family and belongings are safe.
A chain in property market terminology is when you are caught in a sequence of linked house purchases. Each purchase is dependent on the previous owner finding and successfully purchasing another property at the same time. When you are purchasing a new build property, there is no chain that you have to worry about as you are the first person/people that will be moving into that property.
New build homes come with a 10-year warranty. This will give you two years’ builder warranty along with an additional eight years’ insurance for any serious building defects. Now, that is peace of mind!