10 Steps To Buying Off-Plan Property

Buying a property is an exciting time and is a major milestone in life – but it is not an overnight process. Buyers need to be prepared to give adequate time to find the perfect property for them, and then for the thorough property purchase process following.

Although buying a home that isn’t built yet might not be an option for some, for buyers that are happy to wait for their perfect home to be constructed, there are many benefits to buying an off-plan property.

Most buyers can expect to spend?around six months on a property purchase – although each move can vary as there are lots of variables to consider which we’ll explore below.

Step 1. Understanding your Mortgage Affordability (approx. one - two weeks)

First things first, you need to get a mortgage Agreed in Principle (AiP). An AiP is an official estimate to help buyers identify how much they can afford to spend on a property. This is based on details the buyer will provide about their income, spending and any current debts.

We advise working with a mortgage advisor to do this as they understand the industry and can often secure better rates for a small fee (usually paid at the end of the property transaction). However some buyers may choose to do this themselves directly with lenders to save on costs.

If you were to purchase an off-plan property through Haüskey, we can secure buyers an AiP lasting up to two years through our trusted finance partner, This means you do not have to worry about it running out in the typical six months of an AiP, whilst the property is being built.

Step 2. Determining What is Important to You (approx. one week)

Once you know how much you can lend and before any viewings are arranged, it’s best to make a list of what’s important to you when looking for a new home.

For example, understanding which location you would like to live in, what type of property you desire (for example an apartment, a townhouse etc), good transport links, a lively community etc. – these are all key factors a buyer should understand before looking at a property. This will help you avoid wasting time looking at properties that aren’t suitable.

Once the buyer has done their homework and understand what they’re looking for, the fun can begin – starting the search!

Step 3. Finding Your Perfect property (approx. four to twelve weeks)

The longest – but most exciting – part of the buying process is often the hunt for the right home. Buyers can expect to spend approximately three months finding the perfect property, but this could be shorter or longer dependent on the market’s demand and supply at the time.

But don’t be afraid to take as much time as you need – the last thing a buyer wants is to rush into debt for a property that isn’t right for them.

Working with a property provider such as Haüskey, can help you find properties in your budget and narrow down your search. As experts in the market and the home buying process, we can help you with every step of the purchasing journey, including helping buyers to submit offers and speed up the overall process.

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Step 4. Paying your Reservation Fee (same day)

Once you have found your perfect off-plan property, you will be asked to pay a reservation fee. This is normally a relatively small amount compared to the house price of around ￡1,000 upwards.

This will ensure the property it taken off the market and secured for you.

Step 5. Exchange of Contracts and Payment of Deposit (approx. 30 days)

You will usually exchange contracts within up to 30 days of paying your deposit. The exchange of contracts is?when the two legal firms representing the buyer and seller swap signed contracts. At this point, an agreement to buy or sell a property becomes legally binding and only by mutual agreement, can the terms of this contract be varied.

For this you will need to appoint a solicitor to develop the contract. It is likely the developer will recommend a solicitor they work with, or you can choose your own. However, one of the benefits of using the recommended solicitor is that they’ve probably been working on many contracts for the same development, which means their service is likely to be quicker than your own solicitor, who is not familiar with the development.

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At exchange, the buyer will also usually pay a formal deposit, which is usually around 10% of the agreed purchase price.

Step 6. Wait for the Property Build (time varies per property and how far the development process is)

Buyers will be given estimate dates for when the property will be built and completed by – you just need to sit back and wait for your perfect home to be constructed.

Step 7. Finalising your Mortgage and Completion ?(up to one month)?

Agreeing to purchase the property to the point of completion can be a period of months or sometimes longer, but buyers will likely be given up to one months notice before the completion date. This means that you must have everything in order to be able to react quickly and get your mortgage in place.?

Once the property is ready and the mortgage is secured, the buyer’s solicitor will then pay the balance of the purchase price to the seller’s solicitor. Once the money is received, the seller’s solicitor will inform the seller and the keys will be handed over. The property is now yours – happy dances all round!

Arrange a Call

Message me directly to arrange a call to discuss how Haüskey can help you. From visiting property developments and supporting with mortgage applications, to reviewing leases and ensuring buyers deposits are protected – this is a small part of the due-diligence we provide our customers to ensure they are supported every step of the way.?