Unlike older properties, new builds have the added perk of being able to be ‘reserved’ for a specific period, typically 28 days, while the contracts are prepared.
But what does this process look like, how long is the property reserved for, and, crucially, what happens after you reserve a new build? Our team explains all in this comprehensive guide.
Jump to:
- Why reserve a new build home?
- How to reserve a new build home: a step-by-step guide
– Select plot
– Discuss details
– Pay reservation fee
– Sign reservation agreement - Benefits of reserving an Eaton Homes new build
- FAQs
Why reserve a new build home?
Secure your chosen plot: Found the perfect new build home? Whether it’s right next to the children’s play park, boasts an amazing countryside view, or comes with safe and secure off-road parking, reserving allows you to secure the property that meets your specific needs best.
To take it off the market: Once a property is reserved, it’s taken off the market which can help prevent you from losing it through gazumping – where a seller accepts a higher offer from a new buyer after they’ve already accepted your offer.
Potential developer incentives: To attract buyers and boost sales, it’s common for housing developers to offer incentives when you reserve a property, such as help with stamp duty or legal fees.
Longer lead time: With a reservation period, depending on the build stage, you’ll have more time to work with the developer and select your own finishes for customisable elements of the new build (such as flooring and tiles).
How to reserve a new build home: A step-by-step guide
1. Select plot
New build housing developments are often composed of different types of properties, varying in size, the number of bedrooms, layout, and positioning. Floor plans, brochures, and plot specifications can help you to determine which new build is right for you.
Show homes and marketing suites can also provide a much clearer picture of how the property will look and feel once finished.
2. Discuss details
Prior to paying the reservation fee, you should sit down with the developer to discuss the key details. This includes the property specifications and upgrades, completion deadline, warranties, costs and fees, and reservation terms.
3. Pay reservation fee
Most new build reservations require a fee (typically between £500-£5,000) to be paid to the developer.
This fee holds the property, usually for 28 days, while contracts are prepared. The reservation fee is usually deducted from the completion statement.
4. Sign reservation agreement
Before signing a reservation agreement, it’s important to read the terms and conditions carefully. Depending on the refund conditions, if you decide not to proceed with the purchase, you may be unable to recoup the reservation fee.
Benefits of reserving an Eaton Homes new build
In a market where most new builds can be reserved, why should you make your next home an Eaton Homes property?
It’s simple – we build every home as if we were going to live there ourselves. From the foundations and brickwork to the floorboards, fixtures, and finishings, you’ll find quality and care at the heart of everything we do.
At our latest housing development in idyllic Beeston, we’ve built beautifully crafted homes that allow residents to experience both modern convenience and the rural charm of the glorious Cheshire countryside.
To arrange a viewing of a show home or pay our marketing suite a visit, feel free to speak to our helpful team today.
Alternatively, if you’d like to receive more information about the development first, you can also get in touch by:
Calling: 01829 824044
Emailing: info@eatonhomes.co.uk
FAQs
How much is a reservation fee on a new build?
In the UK, the typical reservation fee for a new build is between £500 and £5,000. However, the property type, developer, and sale method can impact this amount.
Discussing the reservation fee with the estate agent or property developer can provide clarity if you’re unsure how much this is likely to cost.
What happens to the new build reservation fee?
The reservation fee is used to hold the property for a specific term, usually 28 days, while the contracts are prepared. In most cases, this amount is deducted from the completion statement.
However, if you change your mind about purchasing the new build before the contracts are exchanged, this fee is often non-refundable.
How long can you reserve a new build for?
In most cases, you can reserve a new build for 28 days while the contracts are prepared.
However, the reservation period can vary depending on the developer, their contract terms, and timeline. If you’re unsure how long you can reserve a specific new build for, we recommend speaking directly to the developer or estate agent.
Can you reserve a new build without a mortgage?
Yes, you can reserve a new build without a mortgage.
However, if you need a mortgage to fund the purchase (e.g. you’re not a cash buyer), then you should obtain an Agreement in Principle (AIP) before you make an offer or even start seriously searching for your new home.
This will give you a clear idea of the kind of property you can afford, ensuring you can focus your property search on homes within your budget.
What happens after reserving a new build?
Once the new build has been reserved, you can take the next steps of arranging a mortgage (if necessary) and appointing a solicitor to prepare the contracts.
Following the solicitor’s searches and acceptance of your mortgage lender’s offer, you can exchange contracts and pay the deposit, which is typically 10% of the property’s value.
Ready to move forward? get in touch to reserve your plot or see our full guide to the buying process.
