It has become increasingly common for developers and housebuilders to sell their projects off-plan to help assure their financiers on the demand for their product. Off-plan investment provides an opportunity for a buyer to secure a property at today’s market value which could be cheaper than the date it completes. There can be instances where, in a rising market, the value of the property has increased between the point of reservation and completion which builds a better equity position in the property before completion. Alternatively, it may offer the opportunity for the original buyer to re-sell their contract at a profit to another buyer before completion without having to pay the stamp duty.

However, there are some risks and drawbacks which should be considered when buying off-plan too. Matters such as mortgage offer validity, build delays, oversaturation, cladding, onerous ground rents and concerns over future re-salability may reduce the number of mortgage lenders available to lend on the project.

Discussing your off-plan investment with one of our experienced advisers prior to exchange of contracts is highly recommended to ensure that your circumstances will allow you to secure a mortgage and that you have mitigated any potential risks to your deposit.