A guide to investing in off-plan property in the UK
Contents |
[edit] Introduction
Buying a property off-plan means purchasing the property before it has been built. This can be a risky move, but it can also be very rewarding, especially where property prices are increasing.
Buying off-plan can be complex, but with more schemes being developed to help people buy such properties, it is becoming much more common across the UK.
[edit] The off-plan buying process
The buying process for off-plan property can be slightly different to what some people may be used to, so it is important to understand the process before making a decision to purchase off-plan. The process is as follows:
- Research different developments and consult a mortgage advisor to discuss your own personal circumstances and how they may impact your investment.
- Pay a reservation fee to reserve your property.
- Arrange for the legal elements of your property purchase to be handled by a professional conveyancer.
- Get a mortgage put into place for your property (should you need one) by searching for the right product and discussing your circumstances with experts, in order to find the best solution for you.
- Complete all paperwork and signatures, exchange contracts with the seller and make payment of the deposit.
- Ensure that a snagging survey is conducted close to the completion date, so that you can be sure that there are no issues to worry about.
- Be ready for when the project is officially completed. The short stop date would detail the expected date of completion, whilst the long stop date would detail the date which the project has to be completed by.
[edit] Off-plan property advantages
- A developer is likely to deal with the property transaction in-house, making the whole process less complex than some may imagine.
- Some developers ensure that a management company is in place before the transaction, meaning that the management and maintenance of the property, as well as the sourcing of tenants, may already be taken care of.
- The purchase price is likely to be lower than similar existing properties on the market, due to the fact that the developer is the only other party involved in the process.
- It is likely that the value of the property will increase from the initial purchase.
- Off-plan properties are brand new, meaning that no additional work should need to be done before renting or occupying the property. Some developers even offer furniture packs to make the whole process even quicker.
[edit] Off-plan property disadvantages
- As off-plan properties are purchased whilst in construction, they are often delayed.
- It can be difficult to secure a mortgage for an off-plan property, and it is likely that there will need to be cash in reserve.
- The biggest risk for off-plan properties, despite being very rare, is that the development company become bankrupt and are unable to complete the project. To minimise the risk of this, work with a trusted company that has years of experience.
--HopwoodHouse 12:41, 31 May 2018 (BST)
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.