What to Expect When Buying a Freehold or Leasehold New Build

If you're considering buying a new build home, whether it is a freehold or leasehold property, it is important to understand the process and your responsibilities.

Based on my experience as a Property Executive dealing exclusively with the sale of new builds, as well as my previous experience acting on purchases of new build properties, I aim to give you a clear picture of how the process works so you can approach your purchase with confidence.

Freehold vs Leasehold: What’s the Difference?

• Freehold means you own the property and the land it sits on outright. This is transferred through a document called a Transfer of Part Deed (TP1).
• Leasehold means you own the property for a set period (usually 99–999 years), but not the land. You’ll have a lease that outlines your rights and responsibilities, including service charges and maintenance.

Thanks to recent reforms, ground rent on most new leases is now set at £0, protecting buyers from unfair charges. Your solicitor will explain which type of ownership applies to your new home and what it means for you.

Your Contract and Legal Documents

Your solicitor will receive a contract from the developer’s solicitor. This will include:

• Who’s involved in the sale
• A description of the property and its boundaries
• The price, reservation fee, and deposit
• Completion dates (including long stop dates if the property isn’t finished yet)
• Confirmation of whether the property is freehold or leasehold
• Planning permissions, building regulations approval, and warranties (like NHBC)

These contracts are usually standard for the whole development, so changes are limited. Make sure to ask your solicitor to explain anything you’re unsure about before signing.

Planning Permissions and Completion Certificates

Your new home must meet planning and building regulations. Here's what to expect:

• Planning permission will have been granted, and conditions are usually dealt with during or after construction.
• A completion certificate confirms the home meets building regulations and will be provided before you move in.
• Completion might happen on a fixed date or “on notice” (usually 10–14 working days after the home is ready).
• Some planning conditions may still be outstanding when you exchange contracts, but the developer is responsible for completing them.

Your solicitor will make sure the contract protects you if there are delays or missing approvals.

Exchange and Completion Dates

Timing is key when buying a new build:

• You’ll be given a deadline to exchange contracts, which secures your plot.
• Before exchange, your solicitor will carry out searches and check the legal title.
• If you’re using a mortgage, your offer must be in place before exchange.
• Completion might be on a fixed date or on notice, depending on how far along the build is.
• Missing the exchange deadline could delay your move or even result in losing the property.

Developers usually need at least 10–14 days between exchange and completion to prepare the home.

Management Companies and Service Charges

If you're buying a leasehold property or a freehold home in a development with shared spaces:

• You may need to join a management company responsible for communal areas.
• You’ll pay service charges for maintenance and upkeep.
• These costs and responsibilities will be clearly set out in your contract or lease.

Warranties and After-Sales Support

Most new builds come with warranties like NHBC Buildmark, which cover major defects for up to 10 years.

• Report any issues during the warranty period so they can be fixed.
• Developers often offer support for minor problems (known as snagging) after you move in.

How Your Solicitor Helps

Your solicitor will:

• Review your contract, legal documents, and search results
• Check your mortgage offer and meet lender requirements
• Explain your responsibilities and any fees
• Communicate with the developer’s solicitor to keep things on track

Final Thoughts

Buying a new build, whether freehold or leasehold, comes with its own process and legal steps. Understanding what to expect and working closely with your solicitor will help make the experience smooth and stress-free.

Our experienced Residential Property team have acted in property purchases from a wide range of developers across the region, while our Commercial Residential team have handled numerous new build sales. Together, both teams have extensive knowledge of dealing with developers and the sale and purchase of new build properties, including the processes, requirements and strict timeframes involved, providing a comprehensive service to support you through every stage of your purchase.

If you are looking to buy a new build property, please call our Residential Team on 02476 632121 to discuss this further or you can obtain a conveyancing quote online here. If you are a developer looking for a firm to handle your development plot sales, please call our Commercial Residential Team on 02476 632121 to discuss your requirements.