Are you thinking about buying a property that's in a property chain, or are you currently in one? If yes, then let's talk about what a property chain is and how you can break free from one.
>> what is a property chain?
A property chain is a sequence of buyers and sellers involved in different property transactions. The completion of each transaction relies on the one preceding it.
For example, you might be looking to buy a house, but the current owner is also planning to buy another property. So, you'll need to wait until they secure their new home before you can move into yours. This forms a property chain. The complexity of a property chain can increase with the number of buyers and sellers involved, or if someone needs to secure a bank loan for their purchase.
Property chains exist in England, Wales and Scotland. However, as the Scottish property market differs from the rest of the UK, property chains in Scotland may be less at risk of breaking down or collapsing.
>> what happens when a chain collapses?
The longer the chain, the more fragile it becomes. It might collapse due to a variety of reasons, like a seller not finding the right buyer, a sale falling through, changes in a buyer's financial situation, or delays in paperwork. If one part of the chain collapses, it often slows down the rest of the chain too. If this has happened to your chain, keep in mind countless UK buyers and sellers navigate property chains successfully every year.
The sale’s process in Scotland is handled differently. Unexpected issues with finances, communication between solicitors, and unforeseen changes in circumstances can occasionally cause a sale to fall. Overall, with qualifying of buyers, clarity of Title and Home Reports at outset, sales falling through are less likely to happen in Scotland.
>> can I speed up my property chain?
While there's no magic formula to accelerate a property chain, there are ways to keep it moving. Keeping your paperwork and finances in order and maintaining good communication with all parties involved can help maintain momentum when it comes to selling and buying a property.
>> breaking free from the property chain
When buying or selling, anyone can end up in a property chain. If you’re currently in a property chain and want to break it, or would prefer to avoid a chain altogether, then you may consider renting in between your property sale and next purchase. In this way, if you have already found a buyer before you’ve found your future home, you can avoid being in a chain.
You may also be lucky and simply find a chain-free seller or buyer, or as a buyer, choose a property that’s already vacant and ready for you to move into.
Last, but certainly not least, an excellent method of avoiding or breaking a property chain is by buying a new build. In this way, you’re free to move in once the build is complete.
Are you looking for a chain-free property? Start your search today! Browse new homes. Or, if you have a property to sell first and need an up-to-date valuation, we can help with that too. Find out what your property is worth:
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