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Buying Off-Plan Guide
Buying an off-plan property means purchasing a property during the construction stage of the building process. At this stage, the properties are offered at discounted price to the actual value of completed status – making it more attractive for seasoned investors.
Besides discount and being a rewarding asset, several other advantages make off-plan a striking investment option:
- Payment terms and conditions are very lenient. To reserve an off-plan project at an earlier stage, all you need is to pay 10% to 20% of the total amount and remaining amount is payable on an easy monthly or quarterly basis that can be extended over the years.
off-plan gives you an advantage of priority selection over the house or apartment you want.
asset holds incredible potential for long-term growth. Property is worth more than you paid for it by the time, it is completed and delivered.
UK you can get a Help to Buy loan on many off-plan properties.
In order to step into the real estate market, you need to be sure about the finance available to purchase an off-plan property. The source can be any, be it your savings, cash sourced through the sale of another property or an offer from a mortgage broker.
It is always a good idea to speak to a professional real estate agent such as the team of Copperstones. Discuss your objectives and see what they suggest as it is always better to rely on their findings. They know suitable developments that can match your requirements and meet your goals.
Once you choose a property from the available options and it fits into your budget – you need to reserve it. Pay a reservation fee for it, which is usually around £1,000.
You need to hire the services of solicitor or conveyancer to handle the legalities of buying an off-plan property. Do not forget to check the status of the property whether it is freehold or leasehold. Discuss your requirements with the conveyancer that must be included in the property and it should be written into the contract.
Prepare your application for a new-build mortgage. Take quotes from different mortgage lenders and get the best deal according to your circumstances. Your selected mortgage broker will then arrange a valuation based on the plans and development specifications.
After finalizing the mortgage, complete the paperwork, exchange the contracts and pay your deposit. After reservation, you should be quick to wrap the next phase, which usually happens within 28 days of paying the reservation fee. After this, you will have to wait a long till your property is built. You can keep a check on whether everything is built according to pre-decided specifications or not. Don’t feel pressured to move into an unfinished property. Check your contract before conducting a nagging survey because most of the developers would not allow buyers to visit the property. You need to re-assure that property is finished perfectly.
In UK, developers usually give you two different dates for the property to be ready. The short stop – the date when developers expect to deliver the property and the long stop – the date when the developer has to complete by. If you are serious to invest in off-plan properties – speak to one of our estate agents, discuss your plans and get a solution.