Purchasing a new build property offers a multitude of benefits, making it a highly sought-after choice for many buyers. These advantages include things like a 10-year construction warranty, enhanced energy efficiency that translates into lower operating costs, and potentially, other additional perks from the developer.
The Home Builders Federation found that buying a new build home can help buyers save approximately £2,600 per year in energy bills. This alone, is a great incentive as David Wilson Homes demonstrates.
As such, when buying a new build directly from a developer, they may often offer incentives like financial contributions towards the deposit, part-exchange options, or shared equity plans. These benefits can significantly ease the process and attract buyers to certain developments.
Deposit Unlock
This scheme enables someone to purchase a new home with just a 5% down payment. Under this scheme, the developer contributes a portion of the property’s price to an insurance plan for the mortgage provider. This not only minimises the initial financial burden on buyers, but also reduces lending risks for the mortgage lender. Some developers limit their Deposit Unlock scheme to first-time buyers such as Bellway Homes, while you may find others that open it to all purchasers.
Developer-assisted Sale
Many developers are now offering assistance in selling homes to quicken the process of buying a new build, like Jelson Homes. They’ll help to find the best offer, arrange impartial appraisals, and negotiate the sale price. They may even cover estate agent costs and manage the entire sales process, aiming for a swift transaction. It’s a convenient and attractive incentive as it takes away one of the biggest burdens in the conveyancing process, selling and negotiating.
Part-exchange
Developers, such as Owl Homes, can propose part-exchange arrangements by purchasing the buyer’s current residence at the same time as selling a new home to them. This approach not only expedites the sale, but also eliminates the need for estate agents, viewings, and price negotiations, bypassing the complexities of property chains.
Stamp Duty and Legal Fees
Some new build developers can cover the costs of Stamp Duty or legal conveyancing fees, like William Davis Homes. This can be a very attractive incentive as these additional costs can mount up. It is a smart move for developers to offer this incentive because it can influence the buyer to purchase a more expensive property. After all, they won’t need to consider these extra fees.
Mortgage Contributions
You may find developers that are able to offer mortgage contributions, or a corresponding cash incentive, such as Davidsons Homes ‘Rate Lock’ offer which will contribute the difference to reduce your mortgage to an equivalent lower rate, or Ashberry Homes offer to contribute £1000 per month for up to two years. You should always check the terms and conditions to see if you are eligible and to understand the requirements of the scheme.
Additional Developer Incentives
Developers often sweeten the deal with extra incentives, such as offering temporary rent payments for shared ownership properties, cash back, providing free soft furnishings like blinds and curtains, making complimentary appliance and flooring modifications, and even offering perks like free family travel passes.
How to Find New Build Incentives
Many home developer websites will promote their latest offers on their websites. In some cases, you may be able to negotiate new build incentives with a sale representative at their show home. Sometimes new build developers are under pressure to sell as many new homes before the end of a target date. In this case, they may be open to negotiation on things like extra furnishings or carpets. They may even lower the purchase price. Once agreed upon, it’s important to get these offers in writing to confirm the extra additional incentives.
BHW Solicitors is the leading residential property law firm in Leicestershire and is ranked in the top ten real estate firms in the East Midlands by the Legal 500 guide. We pride ourselves on giving our clients a seamless and efficient end-to-end conveyancing service and adhere to high-quality industry standards. We work with many estate agents and financial advisors as their preferred conveyancing partner. Due to our proactive approach to progressing our clients’ property transactions, we are constantly being referred time and time again.
Whether you are a property professional, seller, or buyer, we can help with your residential conveyancing queries. To request a personal conveyancing quotation, or to discuss setting up a professional referral relationship with your business, please call us on +44 (0)116 289 7000 or send us an email at conveyancing@bhwsolicitors.com.
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