As you are buying from a builder and not an individual owner, those builders may be able to offer schemes and incentives, allowing their customers to move forward with a purchase. For example, they may offer part-exchange deals, help with a deposit or offer shared equity schemes, meaning you could hold back payment on a percentage of the property’s value.
Deposit paid
The builder may offer you a cash incentive to help fund your deposit or pay for other costs involving moving house. These cash incentives are paid to your solicitor on completion and will need to be declared to your mortgage lender if you are applying for a mortgage. Cash incentives can be up to 5% of the purchase price of your new build home.
Assisted sale
To try and take the frustration away when selling your old home, many builders now offer help in selling your own property.
They will do this by getting you the most appropriate deal and arranging for independent valuations of the property. Based on the average, they agree an asking price with you and the minimum that you are prepared to accept.
They will then market your home through an estate agent and their sales team to try to secure an early sale. The service is free and the builder takes care of all your estate agent’s fees and marketing costs, so there is no hassle.
Part-exchange
If you want to buy a new build home, your chosen builder may offer a part-exchange scheme, where they purchase your home from you and sell it on. The big advantage to you is that you will sell your home quickly as there is no need to deal with estate agents, arrange viewings or negotiate with multiple potential buyers. You can also relax as it is a definite sale and you will avoid property chains, as the builders will have the cash ready to invest.
To have any chance of qualifying for a part-exchange deal you need to be a current homeowner and you must be moving to a new build home. In addition, each builder will most likely have their own set of rules and regulations.
Starter Homes scheme
If you’re a first-time buyer, the Starter Homes scheme could help you buy a new-build home with a 20% discount.
The maximum cost of a home offered via the Starter Homes scheme will be £250,000 outside London and £450,000 inside London (presently the scheme is only available in England)
The scheme hasn’t started yet but planning is well underway. Aspiring homeowners can register their interest online now by clicking here.