Navigating the world of new build homes for sale can be a labyrinth of options and decisions. This article, however, serves as your compass, guiding you through the advantages, procedures, and available schemes. Stay with us, and you'll discover how a new home can bring more than just a fresh start.
Navigating the world of new build homes for sale can be a labyrinth of options and decisions. This article, however, serves as your compass, guiding you through the advantages, procedures, and available schemes. Stay with us, and you'll discover how a new home can bring more than just a fresh start.
New build homes are not just an attractive prospect because they are shiny and new. These homes are typically more energy-efficient than older homes, lowering your running costs in the long run. As a first-time buyer, this is a key factor to consider. A brand-new home also means less worry about costly repairs and maintenance that may come with an old property. Not to mention, new homes offer modern aesthetics and an updated lifestyle that many home buyers crave.
Stamp duty can be a hefty addition to your home-buying costs. However, as of 2023, buyers of new homes in the UK could save significantly on stamp duty. The UK government has launched a stamp duty holiday for new build properties to encourage more people onto the property ladder. Plus, new builds near your desired city centre could also offer more value for your money due to better connectivity and amenities.
Shared ownership is a scheme that allows you to buy a share of a new build home and pay rent on the remaining share. It's a great way to break up the cost of buying a new home, particularly for first-time buyers who might struggle to afford a full mortgage. Shared ownership can also apply to specific developments, including Linden Homes, Bovis Homes, and Countryside Homes, among others.
Shared Ownership is a scheme designed to help individuals, particularly first-time buyers or those who do not currently own a home, enter the property market. This model, also known as part-buy part-rent, allows you to purchase a share of a new or resale property, typically between 25% and 75%. Newer models of Shared Ownership even allow initial shares as low as 10%.
In this setup, you'll pay a mortgage on the share you own, while also paying a below-market-value rent to a housing association for the remainder of the property. This system reduces the deposit requirement, making it more accessible than buying a property outright. Alongside these costs, you'll also be responsible for service charges and ground rent.
Shared Ownership can be beneficial as it offers long-term stability and is generally more accessible than buying outright, particularly for those on lower incomes. Monthly repayments can often be cheaper than an outright mortgage or private rent, and over time, you can increase your ownership stake in the property – a process known as 'staircasing'. You can sell your share of the property at any point, and under certain conditions, it's possible to avoid Stamp Duty land tax on initial purchases.
However, there are drawbacks. Not all lenders offer Shared Ownership mortgages, and you're still responsible for 100% of the ground rent and service charges, regardless of the size of your share. Stamp Duty may apply once your owned share reaches or surpasses 80%. You may also face restrictions on home improvements and structural alterations, which typically require permission from the housing provider.
A significant factor to consider is affordability. For instance, if the full market value of a property is £310,000, and you're purchasing a 30% share (worth £93,000), you'll need a mortgage to cover that sum, minus your deposit. Other costs to keep in mind include rent, service charges, and possibly, Stamp Duty.
For example, for a home valued at £270,000, a 25% share might require an estimated mortgage of £359, with £464 in rent and a £125 service charge, totaling £948 per month. The guidance household income required would be around £34,172. For the same property, a 50% share would result in a total monthly payment of £1,153 and a guidance household income requirement of about £41,540.
Remember to factor in costs not included in these calculations, such as utilities, council tax, and maintenance. It's also recommended to budget £3,000 to £4,000 for one-time fees like legal costs, mortgage arrangements, and potential stamp duty.
As for the rent and service charge, they are typically calculated based on the portion of the property not owned by you, and are subject to annual increases as per your lease agreement. The service charge covers maintenance of communal areas and utilities, insurance, and a reserve fund for major repairs. These charges can vary significantly depending on the features and size of your property.
With a shared ownership scheme, you only need a deposit for the share of the home you're buying. This can be as little as 5% of your share, significantly lower than the typical deposit needed for a full mortgage. This means you could purchase a new build home sooner than you think.
Choosing a five-star housebuilder, like Sage Homes or Drew Smith & Coopers is a pivotal decision when investing in a new home in the UK. These esteemed builders not only provide superior quality homes but are also renowned for their consistent, award-winning performance. Their five-star customer ratings are a testament to their unwavering dedication towards achieving complete customer satisfaction.
With an emphasis on constructing homes that meet precise specifications, these builders ensure that every home available for sale meets the highest standards of design, materials, and craftsmanship. A partnership with a five-star housebuilder when purchasing a new build home doesn't just guarantee a well-built residence, it also promises a first-rate home-buying experience. Such builders are committed to assisting you in every step of the way, ensuring that you find your perfect home that aligns with your expectations and lifestyle.
A mortgage offer is an official agreement from a lender agreeing to lend you a certain amount to buy a property. In the context of new builds, a 12-months mortgage offer can provide you with more time to complete your property purchase. For example, developers like Midlands-based housing associations offer extended mortgage terms to help you secure your new home sooner than you might think.
New build homes for sale are widely available across the UK, including housing developments in Midlands, flats for sale in the city centres, and family homes in the suburbs. Whether you're a first-time buyer or a growing family looking to move, estate agents, online portals, and the websites of house builders can provide a wealth of options. Friends or family who've recently moved into a new build can also be a valuable source of information.
With a deposit contribution scheme, home builders such as Bovis Homes contribute a minimum of 5% towards your deposit for a new home. This can significantly reduce the financial burden of the initial costs and help you get onto the property ladder more quickly.
Some developers offer a Smooth Move service to help with moving costs. This service can include a home exchange, where you can part-exchange your current property for a brand-new home. Other services can involve liaising with estate agents and helping with legal fees, making your move as stress-free as possible.
Staying updated on the latest new build homes for sale in your preferred area is key to getting the best deals. Signing up for email alerts from home builders, housing associations, and estate agents will ensure you're informed when new homes become available, keeping you ahead in the race for the perfect new home.
In summary:
Remember, purchasing a new home is an exciting journey, and being equipped with the right knowledge can make it a rewarding experience.
Panduka Ekanayake
Diving into the concept of turnkey projects within Kent, this comprehensive guide illuminates the seamless journey from conception to completion in residential and commercial spaces.
Looking for expert kitchen fitters in Kent? Our professional team specialises in bespoke kitchen installations in Maidstone, Ashford, Medway and more. Trust in our Checkatrade quality approved work.
Stay up to date with our newest collections, latest deals and special offers! We announce new collection every three weeks so be sure to stay in touch to catch the hottest pieces for you.
