A Guide to New Build Conveyancing in England and Wales

New build conveyancing is the legal process of buying a newly constructed property. It involves tighter deadlines, more complex developer contracts, and additional protections compared to standard purchases, but it also carries specific risks that buyers need to understand before they commit.

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Key Takeaways

• New build conveyancing follows strict developer-set timelines, typically 28 days to exchange
• The Consumer Code for Home Builders gives buyers specific rights during the reservation period
• Mortgage offers can expire during long construction periods, a common and serious problem
• Developer incentives must be declared to your mortgage lender and can affect your loan-to-value ratio
• The Building Safety Act 2022 introduced significant protections for buyers of new-build leasehold flats
• Structural warranties such as NHBC Buildmark cover defects for up to 10 years, but with important gaps

How New Build Conveyancing Works

New build conveyancing begins when you reserve a property with a developer. This reservation requires a fee, which is typically £500 to £2,000, and triggers a strict legal timetable. Under the Consumer Code for Home Builders, developers must provide clear and accurate information at the point of reservation, and reservation fees must be refunded if the purchase does not proceed for reasons beyond the buyer’s control. Buyers should check whether their developer is registered under the Code and understand their rights before signing anything.

From the reservation, developers typically require the exchange of contracts within 28 days. This is not a target. It is a deadline, and missing it can result in losing your reservation fee and the property being re-listed.

Unlike standard purchases, where timelines are negotiated between the parties, new-build transactions proceed according to the developer’s schedule. The practical implication is that your solicitor, mortgage lender, and search providers all need to be instructed and moving from day one.

Key Stages of New Build Conveyancing

Reservation and Instruction

Instruct your solicitor on the same day you reserve, not the day after. The developer will issue a contract pack, and every day of delay reduces the time available for review before the exchange deadline.

The Consumer Code for Home Builders requires developers to give buyers a minimum of ten working days to consider the contract before signing. However, this does not extend the exchange deadline. It simply sets a floor on how much notice must be given.

Contract Review

New build contracts are typically drafted in the developer’s favour and are less negotiable than standard property contracts. Your solicitor will review:

• The draft contract and title information
• Property specification and any permitted variations
• Planning permissions and building regulations approval
• Estate management arrangements and service charge structures
• Ground rent terms (for leasehold properties)
• Incentives offered by the developer

One of the most important things to check is the developer’s right to make changes to the specification during construction. Many contracts permit substitutions to materials, layouts, or finishes, understanding that the limits of these rights matter.

Searches and Enquiries

Standard searches, local authority, water and drainage, and environmental, are carried out during this stage and typically take two to four weeks. Enquiries raised with the developer may take longer if information is incomplete at an early stage of the build.

For leasehold purchases, the Building Safety Act 2022 is directly relevant. It introduced leaseholder protections in higher-risk buildings (generally those over 11 metres or five storeys), including limits on who can be charged for certain remediation costs. If you are buying a new-build flat, your solicitor should confirm whether the building falls within the Act’s scope and what protections apply.

Mortgage Finance

Most new-build buyers require a mortgage, and this is where one of the most common and stressful problems arises: the expiry of a mortgage offer.

A standard mortgage offer is valid for six months. If construction is delayed beyond that period, which is common, your offer may expire before completion. To reinstate it, you may need to reapply, be reassessed at current rates, and potentially face a different loan-to-value calculation if property values have shifted. In some cases, buyers find that the mortgage they were approved for is no longer available to them.

If you are buying off-plan or at an early stage of construction, explicitly discuss the mortgage offer’s validity with your broker. Some lenders offer longer validity periods for new builds, while others do not. This is not a theoretical risk. Muve regularly handles transactions where mortgage expiry creates significant last-minute pressure.

Exchange of Contracts

Exchange typically occurs within two to four weeks of reservation and makes the purchase legally binding. At exchange:

• A deposit is paid (typically 10%)
• A completion date is agreed upon or tied to the build completion
• The developer’s right to draw down on the deposit is confirmed

Missing the exchange deadline can result in loss of the reservation fee and the property being re-listed without obligation to the buyer. Some developers will grant extensions, but this is entirely at their discretion.

Completion

Completion on a new build typically occurs on notice, meaning the developer notifies you when the property is ready, and you are required to complete within a short window, often 5 to 10 working days. This short window can create serious difficulties if your mortgage offer has expired, your financial circumstances have changed, or key parties are unavailable.

The notice period is set by the contract. Your solicitor should flag the notice terms at exchange so you are not caught off guard when the call comes.

Typical New Build Conveyancing Timeline

Developer Incentives, What Buyers Need to Know

Many developers offer incentives to attract buyers, including stamp duty contributions, upgraded fixtures, cashback, or free flooring packages. These can be genuinely useful, but they carry an important obligation: all incentives must be declared to your mortgage lender.

Lenders treat incentives as a reduction in the effective purchase price. If the total value of incentives exceeds a certain threshold (typically 5% of the purchase price), the lender may reduce the loan amount, require a larger deposit, or decline to lend on those terms altogether. Failing to disclose incentives is a serious matter; it can constitute mortgage fraud.

Before accepting any incentive, confirm with your mortgage broker how your lender will treat it and ensure it is clearly documented in the contract.

Warranties and Structural Protections

Most new builds come with a structural warranty. The most common providers are:

• NHBC Buildmark: the market standard, covering structural defects for 10 years
• Premier Guarantee: an alternative widely accepted by lenders
• LABC Warranty: issued via local authority building control

The NHBC Buildmark works in two distinct periods. In years one and two, the developer is responsible for putting right any defects covered by the warranty. You report problems to the developer, not to NHBC. From years three to ten, NHBC covers structural defects directly if the developer is unable or unwilling to act. The warranty does not cover general wear and tear, cosmetic issues, or defects resulting from the owner’s failure to maintain the property.

Mortgage lenders require a recognised structural warranty to be in place. Your solicitor will check that the warranty documentation meets your lender’s requirements.

Leasehold vs Freehold New Builds

New builds can be either leasehold or freehold. The distinction has significant long-term financial implications.

Leasehold new builds are common for flats and some houses. They involve:

• Service charges: ongoing fees for maintenance of communal areas, typically ranging from a few hundred to several thousand pounds per year
• Estate management fees: separate charges for upkeep of roads, landscaping, and shared facilities on larger developments; these apply to some freehold properties too
• Ground rent: the Leasehold Reform (Ground Rent) Act 2022 prohibits ground rent on most new leasehold properties granted after 30 June 2022, setting it at a peppercorn (zero). Any contract proposing ground rent above this for a qualifying new lease should be scrutinised carefully

Freehold new builds involve full ownership of property and land, with no ground rent and no landlord. However, many freehold buyers on new developments are still subject to estate management fees under private estate arrangements, which are not regulated in the same way as leasehold service charges, and buyers should check what they are signing up to.

For leasehold flat buyers, the Building Safety Act 2022 is directly relevant, see the Searches section above.

What Happens If the Build Is Delayed

Construction delays are common. The contract will set out the terms on which the developer can push back the completion date and what, if anything, the buyer is entitled to in those circumstances.

Key questions to ask before the exchange:

• What notice must the developer give before changing the anticipated completion date?
• Is there a longstop date, a final deadline after which you can withdraw and recover your deposit?
• What happens if your mortgage offer expires during the delay?

Some contracts offer buyers a right to rescind after a significant delay. Others do not. Understanding these terms before exchange, not after, is essential.

New Build Conveyancing Checklist

• Instruct the solicitor on the day of the reservation
• Submit identification documents immediately
• Obtain a mortgage agreement in principle before reserving
• Review all developer incentives with your mortgage broker before accepting
• Confirm mortgage offer validity period and discuss extension options
• Read the contract notice provisions for completion carefully
• Ask about the longstop date and delay terms
• Check whether the property is leasehold or freehold and review all associated charges
• Confirm warranty provider and understand the two-year / ten-year split
• For leasehold flats, discuss the Building Safety Act applicability with your solicitor
• Track the exchange deadline from day one

How to Speed Up the Process

The most common reason new-build purchases fail to exchange on time is not solicitor delay, but buyers being slow to provide information. To keep the process moving:

• Instruct your solicitor on the day you reserve
• Submit proof of identity and source of funds documents within 24 hours of instruction
• Have a mortgage agreement in principle in place before you reserve
• Respond to solicitor queries the same day, where possible
• Keep your estate agent updated so they can chase the developer’s solicitor when needed

Muve’s new-build clients consistently find that early preparation, particularly around mortgage and identification, makes the difference between meeting and missing the 28-day exchange deadline.

What Happens If You Miss the Exchange Deadline

If the exchange does not happen within the developer’s required timeframe:

• The reservation fee is typically forfeited
• The property may be re-listed and offered to other buyers
• You may be able to restart the process, but you will need to re-reserve and pay a new fee

Some developers will grant short extensions, particularly if the delay is attributable to their own solicitors or to outstanding enquiries. Extensions are not guaranteed and should be requested in writing.

How Muve Can Help

New build purchases require precise timing. The 28-day exchange window, the mortgage expiry risk, and the on-notice completion structure all create pressure points that a well-prepared legal team can help you navigate, and that a reactive one can make significantly worse.

Muve handles new-build transactions regularly and understands where delays typically emerge, whether that is mortgage documentation, developer enquiries, or incomplete warranty information. We track deadlines proactively and keep you informed throughout each stage so that nothing comes as a surprise at completion.

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