Buying a new home is exciting, but if you’ve already got a property to sell, there’s another thing to think about – the dreaded property chain.
It sounds more complicated than it is. In simple terms, a chain happens when your move relies on somebody else completing theirs. And the more people involved, the more chance there is of something taking a little longer than expected.
So, if you’re thinking about buying a new build but need to sell your current home first, here’s what you need to know.
What is a property chain?
If you’ve found the home you want, but you need to sell your current property before you can buy it. The person buying your home might also have a property to sell, while the people further along could be waiting for their own purchase to go through.
Before long, several moves are all linked together.
Not every chain is long or difficult. Plenty go through without a problem. It just means that everyone needs to reach the right stage before the moves can complete.
First-time buyers usually have an advantage here because they don’t have a home of their own to sell.
Why do chains sometimes cause delays?
There are quite a few people involved in moving house. Buyers, sellers, solicitors, mortgage lenders, estate agents and surveyors can all be part of the process.
Sometimes one part simply takes longer than planned. A mortgage offer might be delayed, paperwork may need sorting or a survey could raise a question that needs answering.
It doesn’t necessarily mean the move is in trouble. Often, it just means everyone else has to wait while that particular issue is sorted.
Keeping in regular contact with your estate agent and solicitor is useful. If they need something from you, getting it back to them quickly means you’re not adding an unnecessary hold-up yourself.
What happens if somebody pulls out?
This is probably the part of being in a chain that worries buyers most.
If somebody decides not to move, can’t secure their mortgage or runs into a problem with the property they’re buying, it can affect everyone else. In some cases the chain can be put back together with another buyer, but unfortunately there’s no guarantee.
This is where buying a new build can remove at least one link.
With a new Eleanor Charles Homes property, you’re buying directly from the developer rather than somebody who needs to find their next house before they can move out. You may still have a chain behind you if you’re selling your existing home, but you don’t have another homeowner above you waiting for their own purchase to complete.
What does chain-free actually mean?
You’ll often see homes advertised as “chain-free” or with “no onward chain”. Usually, it means the person selling isn’t relying on another property purchase before they can complete. It might be an empty property, a second home that’s being sold or, of course, a brand-new home.
For somebody who has spent weeks trying to keep several parts of a chain moving in the same direction, having one less link to worry about can be welcome.
Don’t let a chain put you off
Having a home to sell doesn’t mean buying new has to be complicated. The main thing is to be upfront about your position from the beginning and keep talking to the people involved as things progress.
At Eleanor Charles Homes, our developments tend to be smaller and more personal, so we’re able to get to know our buyers and their individual circumstances. If you’ve found one of our homes and have a property of your own to sell, speak to our team about where you are in the process and we’ll help you understand what happens next.