New Build Reservation Process: What Happens After You Reserve a Home?

Finding the right new build plot can feel like the biggest decision in the buying process, but paying the reservation fee is only the beginning. Once you reserve a home, you will normally need to progress your mortgage, appoint a conveyancer, review legal documents and prepare for exchange of contracts within the timescale set by the developer.

Understanding the new build reservation process before you commit can make the weeks that follow much easier to manage. It also gives you more time to identify important questions before the purchase becomes legally binding.

What happens when you reserve a new build?

A reservation usually removes a particular property from general sale for an agreed period while you progress the purchase. You will normally sign a reservation agreement and pay a reservation fee, although the amount and exact terms vary between developments.

Read the reservation agreement carefully before signing it. It should make clear what you are reserving, the agreed price, how long the reservation lasts, whether any of the fee is refundable and what happens if either side decides not to proceed.

Before paying a reservation fee, make sure you understand the property itself as well as the deal being offered. If you are still comparing plots, use the new build viewing guide to check the specification, plot position, room sizes, parking and wider development.

• Confirm the purchase price and exact plot number.

• Check which fixtures, finishes and appliances are included.

• Get any incentives or upgrades confirmed in writing.

• Ask for the current estimated completion period.

• Check whether estate management charges or service charges apply.

• Confirm the tenure and parking arrangements.

• Ask which structural warranty provider will cover the home.

• Understand the reservation fee and cancellation terms.

Arrange your mortgage and conveyancing

Once the home is reserved, you will need to appoint a solicitor or licensed conveyancer. New build conveyancing can involve additional documentation relating to planning permission, roads, sewers, communal areas, management companies, restrictive covenants and structural warranties.

Choose a conveyancer who is comfortable dealing with new build purchases and the timescales involved. Your conveyancer acts for you, so ask questions whenever something in the contract or development documentation is unclear.

You should also progress your mortgage application promptly if you need finance. A mortgage agreement in principle is not the same as a formal mortgage offer. Your lender will assess your finances and the property before confirming the amount it is prepared to lend.

Tell your mortgage adviser about any developer incentives, deposit contributions or extras included in the purchase. These form part of the transaction and may need to be disclosed to the lender.

If you have not yet settled on a particular housebuilder, you can compare UK new build developers before reserving. Looking at developer information alongside the individual property can help you make a more informed decision about who will be building and providing after-sales support for your home.

Legal checks and exchange of contracts

After reservation, the developer's solicitor will send the contract documentation to your conveyancer. Your conveyancer will review the title, development information and legal obligations attached to the property before raising any necessary enquiries.

This stage is important because the sales brochure and show home do not define the legal purchase. Your contract and supporting documents establish what you are actually agreeing to buy.

• Planning permission and building regulations documentation.

• Property boundaries and rights of access.

• Adoption or maintenance arrangements for roads and sewers.

• Estate management arrangements and charges.

• Restrictive covenants affecting the property.

• Structural warranty information.

• Lease terms where the property is leasehold.

• The contractual position on estimated completion.

Exchange of contracts is the point at which the purchase normally becomes legally binding. Before exchange, make sure you understand the contract, have discussed any unresolved issues with your conveyancer and are satisfied with your mortgage position.

If the property is still under construction, there may not be a fixed completion date when you exchange. The contract may instead provide for completion after the developer serves notice that the home is ready. Ask your conveyancer to explain how this works and whether a long-stop date or similar protection applies.

From exchange to moving into your new home

If your home is still being built, there can be a significant gap between exchange and completion. Keep in contact with the developer and ask for updates to the estimated build programme, particularly if you are coordinating a rental notice period, removals or the sale of another property.

Avoid treating an early estimated completion date as guaranteed. Construction schedules can change, and moving arrangements are easier to manage when you retain some flexibility until the developer can provide firmer information.

As completion approaches, find out when you can inspect the property and how defects should be reported. Keep copies of your reservation agreement, specification, upgrade choices, incentive agreements and important correspondence so you can refer back to them if something is missing or different.

• Check that your mortgage offer will remain valid until completion.

• Keep your conveyancer informed of significant changes to the build timetable.

• Confirm any remaining specification choices by their deadlines.

• Arrange buildings insurance when your solicitor or lender requires it.

• Plan removals without committing too early to a fixed date.

• Ask how the developer handles pre-completion inspections and defects.

• Keep all warranty and after-sales contact details after moving in.

A smooth new build purchase starts before the reservation fee is paid. Research the developer, understand the plot, check what is included and make sure the reservation terms are clear. Once you reserve, stay organised and keep your mortgage adviser, conveyancer and developer informed as the purchase progresses.