Reserving a new-build home is an exciting early step in the buying journey. It gives you the opportunity to secure your chosen plot while you complete the legal and financial arrangements needed to progress to exchange of contracts. But how long can a new build be held for, and what does the reservation process actually involve?
This guide explains how long developers typically allow you to reserve a property, what’s included in a reservation agreement, and what happens next.
What Is a New-Build Reservation?
A reservation is the formal process of taking a new-build home off the market for a set period of time. By paying a reservation fee, you secure the specific plot at the agreed price, giving you time to organise your mortgage, instruct solicitors, and complete the necessary checks before exchange.
The reservation process protects both the buyer and the developer:
For you, it guarantees that the home won’t be sold to anyone else for the agreed period.
For the developer, it demonstrates your commitment to proceed with the purchase.
How Long Can You Reserve a New Build Home For?
Most developers will reserve a property for between 28 and 42 days, with 28 days (4 weeks) being the most common reservation period. Some developers offer slightly longer reservations for more complex purchases, such as when buying off-plan or using a buying scheme.
Factors that may influence the reservation period include:
| Situation | Typical Reservation Length |
|---|---|
| Standard new-build reservation | 28 days |
| Off-plan reservation (early release plots) | 6–12 weeks |
| Using a home buying scheme (e.g. Part Exchange) | 4–6 weeks |
| Delayed completion or future phase release | Agreed individually |
It’s important to use this time wisely, as the developer can sometimes remarket the property if you don’t exchange within the agreed timeframe.
What Is the Reservation Fee for a New Build?
You’ll typically pay a reservation fee of £500 - £2,000 to secure the plot. The amount varies depending on the developer and the price of the home.
This fee is usually deducted from the purchase price when the sale completes. If the sale doesn’t progress, part or all of the fee may be non-refundable, depending on the terms of the reservation agreement.
What’s Included in a Reservation Agreement?
When you reserve your new home, you’ll receive a reservation agreement outlining the key details of the purchase. This usually includes:
The plot number and property details
The purchase price agreed
The reservation period (start and end dates)
The reservation fee amount and refund terms
The developer’s and buyer’s obligations
Timescales for exchange and completion
Any extras, incentives, or upgrades agreed
It’s essential to read the agreement carefully and share it with your solicitor so they are aware of timelines from the outset.
What Happens After You Reserve a New Build?
Once the reservation is in place, the next steps are focused on progressing to exchange of contracts. During this period, you will:
1. Instruct a Conveyancer or Solicitor
You’ll need a solicitor experienced in new-build purchases, as there may be specific clauses and deadlines to manage.
2. Arrange Your Mortgage
If you haven’t already, submit your mortgage application. Your lender will then instruct a valuation of the property.
3. Review the Contract and Legal Pack
Your solicitor will carry out searches, raise enquiries, and review the terms of the contract before advising you to proceed.
4. Finalise Optional Extras and Upgrades
If the property is still under construction, you may be able to select fixtures, finishes, or optional extras at this stage.
5. Exchange of Contracts
Exchange typically takes place within the reservation period. The contract becomes legally binding upon exchange, and you will usually pay a deposit (often 5–10% of the purchase price).
What If You Need More Time?
If delays occur through no fault of your own, some developers may offer a short extension to the reservation period. However, this is at the developer’s discretion and should not be relied upon.
Common reasons an extension may be granted include:
Mortgage processing delays
Waiting for search results or enquiries to be resolved
Developer-led delays
The key is to communicate early if you think timelines may be tight.
Can a Reservation Be Cancelled?
You can usually withdraw from the purchase before exchange if you change your mind, but the reservation fee may be partially or fully retained by the developer. The reservation agreement will outline the refund policy, so check this before signing.
Reserving a new-build home provides valuable peace of mind as you progress towards exchange. In most cases, a new-build property can be held for around 28 days, giving you time to arrange finances and instruct solicitors. Understanding the reservation agreement and acting promptly during this window will help keep your purchase on track.
If you’re planning to buy a new-build, being organised from the moment you reserve will make the journey smoother and more enjoyable. Find out more about the new build reservation process at Mulberry Homes here.
