What Does Chain-Free Mean When Buying Property?

Key takeaways:

• A chain-free property often means fewer delays. With no other sales to coordinate, the buying process is often more straightforward.
• The fewer parties involved, the less likely unexpected issues are to disrupt the purchase, lowering the risk of a sale collapsing.
• Being chain-free gives you more appeal to sellers and a stronger buying position, creating room for negotiation.

 

What does chain-free mean when buying property?

The term ‘chain-free’ refers to the purchase of a property that isn’t tied to the sale of another home. This is a popular option with potential buyers as it provides a layer of reassurance in case a vendor’s onward purchase were to fall through, effectively jeopardising their buyer within the chain.

 

The meaning of no onward chain

Similarly to chain-free, a no-onward chain is highly appealing to potential buyers. This means that the seller does not rely on the money from their property sale to progress with an onward purchase, often resulting in a swifter, easier and less stressful process.

 

 

The average length of a property chain

The length of a property chain varies, with no real upper limit set, therefore amplifying the complexity. Chains can be as small as two parties or expand as much as ten or more. Generally, it’s common to see the average length around three to five properties in a chain, with less than three considered a ‘simple’ process.

 

How long can a chain take?

From the time an offer is accepted to completion can vary greatly depending on the number of individuals in the chain. On the smaller end of the scale, it can be projected to take around four months on average, increasing as more parties are added to the chain. Bigger chains lead to more issues that can arise, which can impact the process and extend the timeline for as long as deemed necessary. Sometimes, this can go beyond a year or more in complicated cases.

 

What problems can slow down the housing chain?

Several aspects can cause a property chain to become hindered, slowing down the process or halting it altogether. Common breakdowns include:

 

Survey issues

While property surveys are not a legal requirement, they are a common and valuable part of the buying journey. Surveys help highlight any areas of major or minor concern, which is particularly useful for older buildings. This gives buyers the negotiating power with the seller, potentially saving thousands should costly issues arise. However, sellers are under no obligation to lower their property value, which could result in the buyer pulling out of the sale entirely if it’s deemed too risky.

 

Unobtainable mortgage

Getting a mortgage is not always straightforward, with strict criteria expected from lenders. If a buyer cannot meet the requirements expected, such as low income, bad credit or a change in circumstances, then the application may be declined and lead to the sale collapsing.

 

Conveyancing delays

The longest process of buying a property is the time it takes to conduct searches and enquiries between the parties’ respective solicitors. With longer chains, this can be a painfully long process, especially if there are broken lines of communication. Sometimes, if searches reveal any areas of concern, enquiries are not met, or a buyer becomes impatient, individuals could drop out of the sale and effectively halt progression.

 

Pulling out of the sale

Occasionally, buyers and sellers can have a change of heart and find themselves pulling out of the sale altogether. Unfortunately, this is an incredibly common way that a property sale can collapse, leaving little room to resolve the situation.

 

Gazumping and gazundering

Sadly, these situations can occur and are frustrating for all parties involved. Gazumping is the act of a seller accepting a higher offer, effectively placing the previous buyer back in the market. Gazundering is when a buyer lowers their offer at the last minute before contracts exchange, putting sellers in a precarious position. Neither process is illegal, but they are considered unethical and frustrating. Gazumping is far more common than gazundering, with over a third of sales affected by it each year.

 

Unexpected events

Personal circumstances can affect the buying process, from job loss, separations, illness or even the passing of a person in the chain. This causes the sale to break down, particularly since it’s common for many homeowners to require a joint mortgage. If a mortgage cannot be acquired due to these events, then the sale cannot progress.

 

 

How to avoid a property chain?

While not all home sales go as planned, taking preventative measures can help keep progress on track. Some ways to avoid a property chain include:

 

Sell before purchasing

Not relying on a property to sell in order to complete a sale is very attractive for sellers. Not only does it allow room for negotiations, but it also reduces the chance of gazumping.

 

Maintain communication

Maintaining an open line of conversation between the solicitor, estate agent, and vendor helps streamline the process. It’s always best to complete any paperwork required as soon as possible.

 

Purchase a chain-free property

Purchasing a chain-free or no onward-chain property on the market can significantly simplify the buying journey, even if competition is slightly higher.

 

Buy a new build

A new build home is often favoured due to the simplicity of the process and the fewer moving parts within the chain. Generally, they have a much better rep at providing a stress-free experience.

 

 

What are the benefits of buying chain-free?

Being a first-time buyer or purchasing without a chain can offer several advantages, including:

 

Minimised risk

With fewer people involved, there is less chance for unexpected issues to disrupt the purchase.

 

Simple processes

Eliminating a chain results in faster move-in times and an easier journey for conveyancers to accommodate.

 

Reduced stress

With no need to accommodate other parties, the time between offer acceptance and exchange can feel more relaxed.

 

Increased appeal

For sellers, being chain-free is incredibly valuable and attractive, strengthening the position of the buyer in the sale.

 

 

Discover chain-free homes with Sky-House

At Sky-House Co., we aim to make you home-ready without the stress of being caught within a chain. With our part exchange scheme, you don’t need to worry about selling your existing home first. We offer a guaranteed sale, with no estate agent fees and a smooth transition into your new neighbourhood.

Whether you’re a first-time buyer or planning your next move, we’re here to make the journey as simple and seamless as possible, the way it should be. Discover your future home and book a viewing today, or get in touch with our friendly team for helpful guidance!