What’s the process used to invest in off-plan property?
In our last investment blog post, we looked at the off-plan property research you’ll need to do before you invest. Once you’ve done this due diligence, you’ll be in a position to benefit from the demand for new homes in London.
It’s a long-term investment you’re about to make. It might be the biggest investment you’ve ever made. It could be the first of many as you build a profitable property portfolio.
But don’t rush into buying your first off-plan property in London. First, get familiar with the process that acts as a framework for all off-plan property investments.
The off-plan property investment framework
The following framework is a guide to the steps needed to complete your off-plan property purchase. You’ve already done your research, and now it’s time to get the ball rolling:
Step 1: Arrange your off-plan finance
Shop around to get the best deal. We’d advise using a mortgage broker. They know the market and are constantly updated with the latest interest rates. Your mortgage broker will be able to provide advise on any special terms and conditions that could be beneficial to you.
Step 2: Hire a solicitor
A solicitor is essential in the whole process. Your solicitor will make sure that everything is above board. They will dot all the i’s and cross all the t’s.
Step 3: Reserve your property
You have the financing agreed in principle. Your solicitor has checked the initial contracts and paperwork. You’re now in a position to confirm your off-plan property investment by reserving the property you want with a reservation fee.
Step 4: Get a survey done
It is essential and does two key jobs. First, it will give you peace of mind that you are buying below market value. Second, without it, your financing company will not extend the promised funds to you.
Step 5: Complete the mortgage paperwork
As the dominoes are stacking up, it’s at this step you will complete the mortgage application. The money will soon be available to draw down as needed. This way you only pay on the money you have borrowed to pay at every payment stage.
Step 6: Exchange contracts and pay the deposit
The contracts will have been checked by your solicitor. With the financing now in place, you can exchange contracts. It will set in stone the purchase schedule and completion date.
Step 7: Snag your off-plan property investment
When the property is built, arrange a snagging appointment. Follow our tips on snagging an off-plan property the easy way, and you’ll ensure that the finished product is how you want it.
Step 8: Complete the purchase
It is the most exciting bit for the off-plan property investor. When you complete the purchase, and the final payment is in the developer’s bank account, you become the owner of the latest home in London. Now it’s simply a question of getting a tenant in, and benefitting from rental income.
Taking the stress out of off-plan investing
The Gladfish off-plan investment process is a lot more detailed than the above framework, though it does follow the same course. Our Progressions Team will help you at every stage, holding your hand and relieving you of most of the stress of investing in new homes in London. This is just one of the many benefits of investing with Gladfish.
To find out more about how our Progressions Team will help you throughout your off-plan investment journey, or for more information on Gladfish’s exceptional access to pre-launch off-plan developments, contact us today on+44 (0)207 923 6100.
Live with passion
Brett Alegre-Wood
