Buying an off-plan property: Your complete guide

Key Takeaways

• An off-plan property is a property that hasn’t yet been built. When you buy off-plan, you’re purchasing a property based on floorplans, CGIs, and working drawings.
• You’ll see what the finished product should look like before it’s constructed.

• Personalisation: You may add your own touches, such as kitchen upgrades and flooring.
• Move-In Ready: No need to decorate or do complex DIY; it’s all set.
• Guarantees: Barratt London homes come with a 10-year NHBC Buildmark Warranty and a two-year fixtures and fitting warranty.
• Energy-Efficiency: New homes meet the latest standards, saving you money and benefiting the environment.
• First Occupant: Enjoy being the first person to live in the property.

What is an off-plan property?

An off-plan property is a property that hasn’t yet been built. This means that you need to use floorplans, CGIs and working drawings to see what the finished product will look like.

 

 

 

The benefits of buying off-plan

Buying an off-plan property comes with significant advantages, including:

 

• Lower purchasing price – Developers may sell off-plan properties at discounted prices. This means that as their value increases over time, they’ll be worth more than what you paid for them. 

 

• Instalments – Buying off-plan allows you to pay in instalments over time. 

 

• Customisation options and no DIY – Off-plan developments are brand-new, meaning they require less maintenance and can be decorated as you wish. 

 

• 10-year warranty – Off-plan properties usually come with a 10-year warranty, protecting you from potential issues after completion.

 

 

Seven steps to buying your off-plan home

Below are the seven steps to buying your off-plan property.  

 

1. Find the right property

You won’t be able to visit the property, so it’s important to research the developer and review their plans and timelines. It’s also a good idea to visit the area and the site’s show home to get an idea of what your finished home will look like.

2. Choose a mortgage adviser

A mortgage adviser can help you find the best deal for your circumstances. Let them know you’re buying off-plan so they can find a lender who provides off-plan mortgages, as not every lender does.

 

3. Reserve your future home

Once you’ve found your off-plan development, you can pay the reservation fee. This is usually between £500 and £1,000 and is deducted from the total cost of the property.

 

4. Find a solicitor or conveyancer

A conveyancer or solicitor carries out the legal work involved in buying a new home. They’ll help you with everything from identity checks to contract exchanges and completion. 

 

5. Arrange your mortgage

Your lender usually organises a surveyor’s valuation based on the plans and development specifications to ensure your home is worth what you’re paying for it. Once this is done, they can issue you with a mortgage.

 

6. Exchange contracts and pay your deposit

Once the solicitors are satisfied, you’ll need to sign the contract and pay the deposit.  

 

7. Get ready for completion day

Now, it’s time to agree on a completion date with your developer. You may be able to see the house before completion, but check this with your developer first. 

 

On completion day, you’ll need to pay the remaining balance on the property, as well as Stamp Duty (if applicable). Learn more about Stamp Duty  in our handy guide. 

 

 

 

Key questions to ask your off-plan developer

These are a few things you should ask your developer before buying off-plan.  

 

General questions

• Are there any rules around the mortgage broker or solicitor I use?

Developers may recommend mortgage brokers and solicitors, but ultimately, it’s your choice whether to work with them or not.

 

• When will the development be finished?

If your new home is part of a larger development, work may continue around it. You’ll need to discuss this with your developer.

 

• What are the specifications for my property?

Make sure you know exactly what’s included in your sale, from flooring to kitchen appliances. If features are not included, you may be able to purchase them from the developer at an additional cost.

 

• What documentation should I get upon completion?

Your solicitor should handle this on your behalf, but you should receive copies of every certification, warranty and important document necessary for sale.

 

• What tax band will my home be in?

You can use national tools to check the council tax band of different homes, but off-plan properties won’t show up. Make sure to check with the developer to confirm your annual council tax bill.

 

 

When buying a flat

Looking to go off-plan in London?

As one of the most desirable and popular cities in the world, demand for property in London is high. Whether you want to live in Hendon, Tooting Bec, Wembley or Harrow, there’s a lot to consider.

We understand there’s a lot of information to go through, so we’ve pulled together more advice on choosing and buying the right off-plan property.

If you’re ready to buy off-plan in London, you can search through all our available developments here. If you’re still looking for inspiration and advice, we can help with that too. Read our guide for first-time buyers in London here.