Different types of property
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
The type of property you choose could affect your rights and responsibilities. For example, the age of the property may affect its condition and/or how it is insured. If you buy an ex-council property the council may still own the freehold, and if you buy a park home you will have to agree to the site rules.
Newly built properties
Buying a new home has its advantages. You don't usually have to spend money on repairs and/or decorating for the first few years. In many cases the builders will install fitted kitchens and/or carpets as part of the sale and you may get a choice of colours. However, new properties are sometimes a long way from local amenities such as schools and shops. The rooms may be smaller than in older properties and sound insulation may not be so good.
If you want to buy a new property, you can ask local building companies for details of new homes being built in the area. They may advertise available properties in local newspapers and/or may have websites. You may also be able to find a newly built home through an estate agent.
Many builders try to sell new homes while they are still being built. They may offer mortgage deals and help with other expenses as an incentive. If you are thinking of make an offer, you may be asked to pay a deposit or sign an agreement. You shouldn't do this without getting advice from a solicitor first.
Structural guarantees
Many builders provide structural guarantees for the first ten years after you buy your home. If any structural problems develop within that time, you won't have to pay for the repairs. Two of the most common guarantee schemes are the National House Building Council Buildmark scheme, and LABC Warranty.
Find out exactly what the guarantee covers before you sign anything. If the property you want to buy isn't guaranteed by one of these schemes it may be more difficult to get a mortgage on it. Check with your lender to make sure. You may also decide to get a full survey to check that it is structurally sound.
More information on buying a newly built home is available from DirectGov.
Older properties
Older homes are popular with many buyers because of their 'character' and period features. They are also usually closer to schools and shops than new properties. However, this may mean that it will be more difficult to find a parking space (you may have to pay for a permit), and traffic pollution and noise could become a problem.
Older properties are also more likely to have structural problems, particularly if:
- they have been converted into flats
- major alternations have been made
- they have not been properly maintained.
If you want to buy an older property it may be a good idea to hire a surveyor to carry out a homebuyer's report or a full survey before you exchange contracts.
Ex-council properties
Ex-council tenants who used the 'right to buy' can sell their homes on the open market. They may work out a bit cheaper than similar properties that have never been owned by the council. This is particularly true if the property is in a large estate. As with any property, it's important to look carefully at the condition of the property itself and the condition of the surrounding area (the estate).
If you buy a flat, you will probably be a leaseholder. If the building and/or other parts of the estate are in poor condition, you may have to pay a share of expensive repair and maintenance bills. This could be the case even if you don't use the areas that need repairs. Some lenders may be unwilling to give you a mortgage if the building is more than five stories high.
If the current owner bought the property from the council within the last three years, s/he will have to pay all or part of the 'right to buy' discount back to the council. This will need to be checked with the local authority as part of the legal preparation, and may cause delays if the seller can't afford to pay it back.
Mobile homes
Mobile homes (or park homes) are prefabricated buildings situated in a caravan park. Many sites are in leafy areas and they often have facilities such as an on-site shop. They are popular with people over the age of 50, and homes on many sites can only be sold to older people.
Park homes are not normally on wheels and are rarely moved from one place to another. They often have all the features found in an ordinary home, including a garden, but are usually cheaper. They are usually smaller than other properties and sound insulation is not always effective.
In many cases, you will have to pay rent (the 'pitch fee') for the land your home is situated on, and the site owner will probably charge ten per cent of the sale price if you decide to sell later on. There may also be rules about:
- parking arrangements
- whether children or pets are allowed
- satellite dishes and television aerials.
It may be possible for the site owner to change these rules after you buy your home by giving 28 days' notice to all the mobile home owners on the site. If this happens and you are not sure of your rights, get advice. Use our directory to find an adviser in your area.
If you buy a park home, you will have different rights and responsibilities than other home owners. They should be explained in a written statement provided by the site owner. It's important to have your solicitor check this carefully before you buy. It may say that the site owner can move your home to a new pitch elsewhere on the site. If this happens you shouldn't have to pay any expenses and the new pitch should be comparable to the old one.
