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New Build Conveyancing Timeline: A Buyer’s Guide to Post-Exchange

A new-build property based in London opening ceremony. A red ribbon that reads "new-build post-exchange". Red scissors in the process of cutting the ribbon

There are various stages to purchasing a property before it is fully constructed, and collaboration with your solicitor is key to ensure seamless progression with the New Build Conveyancing timeline.

Prior to exchange of contracts, your solicitor negotiates on your behalf and reports to you on the legal documents for your purchase. On the date of exchange, you become legally bound by the contract, and proceed with the following stages until your New Build Property is ready to move into.

Post-Exchange

Immediately following exchange, you should diarise the timescales which are set out in your contract, to ensure you are prepared for each.

Key dates to note include:

  • Stage Payments are due on specific dates over the course of months or years leading up to completion.
  • Estimated Completion Date when the Developer expects for construction to be concluded, and for legal completion to take place.
  • Fixed Completion Date is only applicable in certain situations when construction of the Property is already finished.
  • Longstop Date is the final deadline by which completion must take place, or the buyer may terminate the contract and recover their deposit.

Stage Payments

Approximately one month before your stage payment is due, you should contact your solicitor to provide updated source of funds documents, so you may send the stage payment to them. 

Solicitors are obligated to complete due diligence checks for each payment towards your purchase. You should provide the documents in plenty of time and highlight any changes in your source of funds to your solicitor as early as possible.

Legal Completion

If you are obtaining mortgage finance, you should begin this process approximately six months before the Estimated Completion Date. Although most mortgage offers are valid for six months, some Lenders may allow up to twelve months for newbuild properties, to accommodate for potential delays.

Once construction is complete and Building Control has given their approval, the developer will give you ten working days to complete the purchase.

It is recommended to inspect the Property in person before completion, to ensure any snagging issues are raised with the Developer.

You will sign your final Lease and Plans which, dependent on the Developer’s preference, may be signed electronically or in ink. Once source of funds checks are complete, you should organise the purchase balance to your solicitor, with any stamp duty and legal fees payable.

You should note that if you do not complete within the 10 working days, the developer will charge you a daily interest at the rate set out in your contract, often 4% above the Base Rate. The developer will also have the right to terminate the contract, keep your deposit and stage payments, and sue you for damages.

Post-Completion

Your solicitor will deal with the payment of Stamp Duty Land Tax and the registration of your lease at the Land Registry. They will also activate your New Build warranty, which remains in effect for ten years following completion. You should keep these documents safe to pass on if you come to sell the Property.

The Land Registry has extended processing timescales for new Leases, which currently average 10 to 18 months. Be assured, once your Land Registry application is submitted, it is “priority protected”. This means your application takes priority over any subsequent applications lodged against the title after yours. Nevertheless, it is not easy to expedite a new lease application as the Land Registry would have to deal with every prior application to yours.

Conclusion

Purchasing a New Build Property is an extensive but gratifying process. Good preparation and communication with your solicitor are vital to achieving the most successful, yet smooth conclusion.

At Quastels, we take a collaborative approach to ensure buyers are included in the process and have a positive experience throughout the stages of the New Build Conveyancing timeline.

Georgia-Mae Purle

Conveyancing Executive

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