Savills view
Buying off-plan is something many people shy away from because they feel it’s a complicated process that is best left for people with a lot of property experience.the truth is it’s really simple and can be a very intelligent investment. Here are 10 steps to purchasing an apartment off-plan. 1. SPEAK TO A FINANCIAL ADVISOR BEFOREYOU DO ANYTHING
You won’t be able to get a mortgage offer until about six months before completion, however it depends on which lender you use.a financial advisor will give a good steer as to what can be borrowed and when you should begin the formal application process.
2. DECIDEWHATYOUR AIMS ARE
Are you looking to live in the property or is it an investment? If it’s an investment, are you looking for a solid rental yield or long-term capital growth, or both?
3. FIND AN APPROPRIATE DEVELOPMENT AND THEN SELECT THE RIGHT APARTMENT
There are a huge variety of locations and price points available. Our specialist residential development sales team based in Margaret Street, London, will be able to help you select the perfect product to suit your needs.
4. PAYYOUR DEPOSIT
Once you have agreed a price, you will need to pay your reservation deposit which takes the apartment off the market and goes towards the purchase of the apartment.you will also need to fill out a reservation form and appoint a solicitor. If you do not have a solicitor, there is often a suggested solicitor who is familiar with the specific process for that development, which can make exchanging contracts simpler.
5. LET THE SOLICITORS DO THEIR JOB
The exchange process usually takes around 3-4 weeks. 6.TIME TO EXCHANGE
You will usually be required to put down 10 per cent of the purchase price (minus your deposit already paid). Depending on the development, there may be further staged payments due before completion.
7.WATCH ANDWAIT
Now you can sit back and watch the building going up, and your apartment being constructed.the developer will often send updates during this period to let you know how construction is progressing.
8. GETYOUR MORTGAGE SORTED
After you have exchanged, check with your financial advisor