Buying a new build home in Scotland is an exciting journey, filled with anticipation of owning a modern, energy-efficient property tailored to your needs. However, for first-time buyers or even seasoned homeowners, the process can feel a bit daunting, especially if you’ve never bought a new build home before.
1. Choose Your New Build Development and Plot
The first step is selecting the right development and home design that meets your preferences and lifestyle. Whether you’re looking for a city-based apartment or a suburban family home, make sure to research different housing developers, their available plots, and the community where the developments are located.
Considerations:
- Location: Proximity to schools, work, amenities, and transport links.
- Property types: Do you need a two-bedroom starter home or a spacious four-bedroom detached house?
- Design and layout: Do you prefer open-plan living, or do you need specific features like a home office or a large garden?
Once you’ve identified a development that suits your needs, it’s time to reserve your plot.
2. Reserve Your Home
After choosing your ideal property, you will need to reserve it and the great advantage for new build homes, there’s no bidding war. The price advertised is the price you purchase the property. Reserving a new build typically involves paying a reservation fee, which can range from £500 to £1,000, depending on the developer. This fee secures your home and takes it off the market while the paperwork is processed.
Key Points:
- The reservation fee is usually non-refundable or partially refundable but can be deducted from the final price.
- Once reserved, you typically have 28 days to conclude missives (the Scottish equivalent of exchanging contracts).
3. Get Your Finances in Order
Before committing to a purchase, it’s important to ensure your finances are in place. This includes securing a mortgage offer if you’re not buying with cash. Many developers have partnerships with mortgage brokers who can assist in finding competitive deals, especially for new build homes.
Steps to take:
- Apply for a mortgage: Many banks and building societies offer specific mortgages for new build homes, which may include special rates or incentives.
4. Hire a Solicitor
In Scotland, property purchases require a solicitor to handle all the legal work. Once your reservation is confirmed, you’ll need to appoint a solicitor who will deal with the legal aspects, including preparing contracts, and concluding the missives.
Your solicitor will:
- Carry out legal checks on the property and the development.
- Ensure the Title Deed is valid and transfer ownership once the sale is completed.
- Handle the payment of LBTT in Scotland.
5. Concluding Missives (Exchanging Contracts)
In Scotland, “concluding missives” refers to the exchange of contracts between buyer and seller, which makes the purchase legally binding. Your solicitor will negotiate the terms of the sale, such as the final price and any extras or upgrades included in the build.
Once both parties are happy with the contract terms, a deposit is usually and the missives are concluded, and you are committed to buying the property. Unlike in other parts of the UK, once missives are concluded in Scotland, the buyer and seller cannot back out without facing financial penalties.
6. Monitor the Build Process
One of the great things about buying a new build home is that you may have the opportunity to personalize certain aspects, such as kitchen fittings, flooring, and other interior finishes, depending on the stage of the build.
Throughout the construction phase, the developer will keep you informed of progress. If possible, arrange to visit the site to see how your home is taking shape and stay in touch with the developer to get updates on the expected completion date.
7. Finalize the Purchase and Collect Your Keys
The day you’ve been waiting for! Once the build is complete and all legal requirements are fulfilled, you’ll pay the remaining balance for the property (your mortgage lender will release the funds) and settle any outstanding costs, such as legal fees and LBTT.
Your solicitor will officially register the property in your name, and the developer will hand over the keys, marking the completion of your new build purchase.
8. Move In and Enjoy Your New Home
With the legalities behind you, you can now move into your brand-new home! Make sure you have everything in place for a smooth move, including setting up utilities, changing your address, and planning your moving day.
Most new build homes come with a 10-year warranty through the National House Building Council (NHBC) or a similar provider, giving you peace of mind that any major structural issues will be covered.
9. Snagging and Final Inspection
Once the property is completed, it’s time for a handover inspection. This is commonly referred to as the “snagging” process, where you can check for any defects or unfinished work. Typical snagging issues include things like unaligned doors, incomplete paint jobs, or minor cracks in walls. You’ll have a set number of days to complete this so don’t delay!
Final Thoughts
The process of buying a new build home in Scotland may feel complex at times, but by following these steps and working closely with your solicitor, developer, and mortgage provider, it can be a rewarding and straightforward experience. With modern designs, energy efficiency, and the ability to personalise many aspects of your home, a new build offers an excellent option for anyone looking for a fresh start in a brand-new property.
Happy home buying!