Process of purchasing off-plan

One of the most popular asset classes in the UK, off-plan property refers to the purchase of an apartment or house prior to its practical completion. However despite its popularity it is understandable that many people look for further information before making their first off-plan purchase.

In this quick guide we will run through the basics of off-plan property investment and the process when investing with Knight Knox.

The process of investing in 5 simple steps:

1. Discuss with your property consultant your requirements

2. Your consultant will assist you in picking your perfect apartment

3. Pay a reservation deposit of £5,000 to secure your apartment

4. Notify your dedicated aftersales consultant of your chosen solicitor

5. Exchange of contracts will be required within 21 days of reservation

Why would you buy a property before it's completed?

Off-plan properties can often be bought at a lower market value than completed property. In addition the value of an off-plan property can significantly increase in the time it's being built, so can result in a greater financial return.

Click here if you want to read more about the reasons why off-plan property investmnet is one of the fastest growing markets in the UK.

Example payment structure:

1. 25% of balance is payable on exchange of contracts, plus 50% of furniture pack costs

2. A further 15% is payable six months after exchange

3. A further 10% is payable twelve months after exchange, plus the remaining 50% of furniture costs

4. The remaining balance (50%) is payable on completion

Choosing and reserving your property

Once you have decided that off-plan property investment is for you it is time to pick your perfect apartment. From choosing your preferred location, to choosing the orientation - there are a host of decisions to be made which your dedicated property consultant will help you with.

To reserve an off-plan property you will be expected to pay a deposit. At Knight Knox we require a reservation fee of £5,000.

Appointing a solicitor

You must appoint a solicitor to carry out legal work on your behalf. If you are unsure of which firm to use, Knight Knox has a panel of recommended firms who are well versed in the intricacies of off-plan buy-to-let property.

Once you have decided on which solicitor to use they will require you to sign an instruction letter to confirm appointment.

The legal process

The legal process of buying property can be broken down into the following four steps:

  • The developer's solicitors will issue your solicitors with a contract pack
  • Your solicitor will raise any enquiries they have on your behalf, and you have the opportunity to ask any questions
  • Once satisfied you will sign and return the contract and pay your exchange fees
  • Once exchange has taken place the purchase becomes legally binding

Throughout the purchase process you will have the support of your elected solicitor, as well as the experienced and friendly Knight Knox Aftersales team.

What will my solicitors require from me?

When purchasing any property in the UK you will be required to undergo Anti-Money Laundering Checks (AML). In order for the solicitors to do this they will require:

Proof of address | Certified ID | Source of funding (normally in the form of a questionnaire and a bank statement)

Please note that if you have a joint account you will be required to provide certified ID for both account holders

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Completion

Once your apartment is structually complete your solicitor will recieve a completion notice, at which point you will have 10 working days to pay the remaining charges. Your solicitor will carry out final legal work including carrying out searches and reviewing documents and once this is done you will formally complete your purchase.

At Knight Knox we have a dedicated team of professionals on hand to guide you through every step of the process, from picking your perfect apartment to completing the legal paperwork and liasing with your chosen solicitor on your behalf.

At Knight Knox we endeavour to make investing in off-plan property simple, enjoyable and stress free.

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4.7 Customer rating on Google Reviews

" I was so pleased with the annual returns of this investment that I subsequently bought 3 more properties"

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4.7 Customer rating on Google Reviews

"Excellent service from start to finish!"

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4.7 Customer rating on Google Reviews

"I recommend them thoroughly"