New home or pre-loved?

When you’re looking for your first or next home, the choice of property out there can make for a bewildering time. You may find yourself torn between a brand new home that has never been lived in or a dwelling that is hundreds of years old.

So, what are the pros and cons of buying old or new?

New build advantages

When it comes to brand new or ‘new build’ properties, from a practical point of view, there are many plusses. You are the first to live there, for example, and there is no need for expensive or messy building work. Some developers may even supply white goods and fitted carpets too, tailoring the décor to your requirements, so you can just move in and put your feet up.

There are various schemes to help buyers and developers, including help to buy, new build and specialist schemes for key workers such as nurses and police officers. There is even an option on some properties for shared ownership, where you purchase a share in the property (say 25% or 50%) with a view to purchasing the rest over the next few years; in the meantime you pay a nominal rent to the relevant housing association. You’ll even get a 10 year guarantee against build failures on most properties.

New build disadvantages

On the down side, these schemes do restrict you to specific property types that fall within their guidelines and requirements; and new build properties are usually more expensive to buy than an equivalent older property.

When it comes to flats, you need to be wary of high monthly service charges. And overall room dimensions have become smaller over the last 30 years or so as land prices reach a premium. The biggest stumbling block on a new build however could be finance; if you are not buying under one of the government schemes, then mortgage lenders typically want as much as 20-25% deposit on a new build, especially flats. Also beware buying ‘offplan’, where you are essentially buying a draft and are reliant on the builder to complete the project to that standard and specification. It is the plan on which the valuation has been based.

Both advantages and disadvantages of buying older properties

Older properties can undoubtedly have more character and usually comprise larger living areas – this is particularly so with 1930s and 1950s properties – however, you do need to invest in a full valuation to ensure there are not hidden problems that could cost you a lot more in the long run.

Although most government schemes no longer apply to older properties, getting a mortgage should prove easier (subject to surveyor’s comments of course) and, in theory, you only need 5% deposit. However, don’t forget you may need to spend a lot on it. Make sure if it is leasehold that the lease is at least 75 years if you can and use any faults picked up by the surveyor as a bargaining tool with the vendor and / or agent. If you want an old period property, be prepared – some lenders don’t like timber construction and even fewer like concrete and steel. It’s also worth noting that thatched roofs can present an insurance issue.

We are happy to provide more guidance on lender preferences; we have access to the whole of the market and quite often will have some idea without even having to ask them. This makes for a smooth and speedier process.

April 2018