We’ve all heard those stories about property chain hold-ups. Everything seems to be going well with a sale or purchase, then an issue crops up somewhere along the chain, and everything grinds to a halt.
Moving house can be a stressful business, which explains why the demand for chain-free homes is growing. While not all property chains experience problems, when they do collapse, it can be a serious setback to your moving plans.
A recent survey by a leading property firm looked at the main reasons why transactions fail. The 2023 survey reports that 29 per cent of failed sales were due to buyers getting cold feet, while 25 per cent were related to legal issues or a problematic survey. Other reasons include difficulty getting a mortgage, slow sales progress or a change in the buyer’s or seller’s circumstances.
What is a ‘chain free’ property?
All this talk of chains may sound a little medieval, but basically, a ‘property chain’ is a group of buyers and sellers linked together by their transactions. These sales are completely dependent on one another, so if one transaction hits a problem, it will affect everyone else in the chain.
When you see the words ‘no upward chain’ or ‘chain free’ on a property listing, it means the seller isn’t dependent on the money from their current property to buy their next home. In other words, the seller can sell to you without creating a chain.
The seller in question may be letting their existing home or relocating abroad. Alternatively, they could be selling a house they have inherited, going to live with family members or renting their next home instead of buying.
Chain-free buyers
If you are a chain-free buyer, it means your purchase doesn’t depend on the sale of a property that you own. The best example of this is the first-time buyer.
With no chain behind you, you’ll be in a good position to negotiate your property purchase. Chain-free buyers can gain an advantage if the seller is keen to move quickly or they want flexibility when it comes to exchange and completion dates.
The benefits of chain-free homes
When it comes to the timeframe for a sale to go through, there’s a jaw-dropping contrast between selling as part of a property chain and a chain-free transaction. The average conveyancing period for a property chain is three to six months, while the chain-free average is just six to eight weeks.
For families in a hurry to move before a new school year begins or for a buyer rushing to meet a work relocation deadline, those extra weeks could make all the difference. The process of buying a chain-free home can also be less stressful, as the transaction is less likely to be delayed or canceled due to circumstances outside your control.
However, it’s only really possible to benefit from this short time frame if you are a chain-free buyer.
How can I become a chain-free buyer?
We’ve already mentioned that first time buyers are ‘chain free’. The same applies if you are a cash buyer. But if you already own a property, there are other ways of becoming chain-free.
If you sell your home first and then go into rental accommodation (or stay with friends or family members), you will have a chain-free advantage. This can help when it comes to negotiating your next home purchase, but it could mean extra costs in terms of rent, moving expenses and storage.
Alternatively, you could take out a bridging loan, a short term loan that can help to bridge the gap when you want to buy a property but are waiting for funds to become available from the sale of your current home.
How can I find chain-free houses to buy in Ilford?
Simply get in touch with our Ilford estate agents to hear about newly-listed chain-free houses for sale in east London (we serve a wide area, including postcodes IG1, IG2, IG3, IG4, IG5, IG6 and IG7).
Whether you are looking for one bedroom flats or spacious family properties, traditional Victorian homes or modern apartments, our friendly and experienced sales people are ready to help with your property search.
If you have a chain-free property to sell, we’d love to hear from you. We’ll use our in-depth local knowledge and expert marketing skills to find the right buyer.
Give us a call at 0203 972 7341 or email info@oaklandestates.co.uk.
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