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New-Build Incentives; What You Need To Know When Buying A New Build House

Posted on 4th May 2020

When looking to purchase a new build property, there are a number of incentives that can be offered, by the developers, in order to secure that all important sale. These can include the following:

Payment of Stamp Duty Land Tax: When purchasing a property, unless you are a first-time buyer, or purchasing at a value below the current threshold, Stamp Duty Land Tax will be payable. You can work out the amount of Stamp Duty Land Tax payable, in consideration of your purchase price, by using the GOV.uk online calculator. In some cases, the amount payable can be relatively costly, making it a perfect incentive for developers to offer to pay. This is a common feature offered by developers and, for many, can be a great saving. See our Preston solicitors’ blog in which we talk all things Stamp Duty, here.

Payment of Deposit: As another form of cash incentive, developers can offer to pay the deposit required to purchase. Putting money aside for a deposit can take time and serious saving, making the offer of covering the same a favourable option for prospective property purchasers.

Part Exchange Deals: Where you need to sell your present property, in order to purchase the new one, developers can offer the opportunity to part-exchange your property, in exchange for the new. The developers, in effect, purchase your property from you, with a view to selling it on. For some, this is a favourable option as it ensures a guaranteed sale with assurance that the funds to purchase are available. This option also eliminates the need for estate agent involvement, however, is not for everyone.

Additional Property Items: In many cases, there are discounts given on additional items at the property, such as fitted kitchen units and carpets, as examples. The developers often offer discounts on such items and free upgrades, as an incentive to purchase. That brand new, dream kitchen does, of course, come at a price, making it a perfect incentive to be offered by the developer.

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It is important to note that such incentives are, usually, offered on the basis of an early Exchange of Contracts. A deadline is normally imposed for Exchange to take place by, in order to avoid the risk of losing the incentives offered. This deadline is normally around the 28-day mark, following the reservation of the property, however, can vary developer to developer. Our solicitors in Preston are on hand to ensure that any deadlines imposed are met with time to spare, and that any agreed incentives are not revoked.

Our team are not, however, here to fall at the feet of the developers. We work on the best interests of our valued clients only, who are our top priority, and nobody else. Whilst we all wish to proceed to Exchange of Contracts at the earliest, in order to secure the transaction, before doing so we need to ensure that all is in order and that you, as the prospective purchasers, are satisfied and 100% happy to proceed.

Exchange of Contracts makes matters legally binding, also known as ‘the point of no return’, therefore, the necessary searches, inspection and due diligence should be adequately fulfilled before doing so. For more information on the importance of Exchange of Contracts, and for our Preston solicitors’ ‘Pre-Exchange Checklist’, here.

If, therefore, you are purchasing a new build property and require guidance on the incentives on offer to you, get in touch today, at property@mglegal.co.uk, where our local solicitors will be on hand to assist you.

If you have any other conveyancing query, we welcome all clients, old and new. We would love to chat all things conveyancing with you so, if we can be of assistance, submit an online enquiry via the following link, where we can work with you, not just for you.