Property Chain

If you are selling your current property and buying a new one, you’re most likely in the middle of a property chain.

What is a property chain? 

A property chain is when home buyers and sellers are linked together as their purchase or sale relies on another transaction.

This is more applicable to home buyers for the reason mentioned above, you’re selling and buying at the same time to be able to finance your purchase.

There’s always the possibility of the chain being held up because of one link. It could be that you are ready to sell your home however, your seller is finding it difficult to complete the purchase of their next home, holding it back.

A chain is successful when everyone is working towards the same completion date – for buying and selling. When actions of other links affect the whole chain, it’s usually not something that you can control so it’s always good to find out about the chain and express your interest in this area of your property transaction.

Tips to keep the property chain moving: 

• Get yourself organised
  

Ensure all your paperwork and necessary documents are organised and put away to be able to easily access if needed. With anything that needs to be signed, make sure you are able to sign and return as soon as possible to keep things moving. Additionally, it’s a good idea to have your solicitor and agent’s contact number to hand on your mobile too.

• Communication
  

Keep the communication constant, check in with your solicitor, estate agency and mortgage broker frequently to get moving towards exchanging contracts. If everyone is informed and communication is clear from all sides then there are fewer chances of a break in the chain.

• Serve a completion date
  

If contracts have been exchanged but your buyer is hesitating, serve a notice with a completion deadline to have all necessary documents signed off. If not, they could lose their deposit.

• Vetting
  

Buyers who are serious will have someone ready to purchase their property, a solicitor ready and a mortgage offer agreed in principle – finding out about your buyers is useful in knowing if they are likely to break the chain.

• Break the chain
  

The fewer links there are in the chain, the less likely it will break apart. You can break the chain by considering moving out of your property and into temporary accommodation.

Are there exceptions?

There are times when a chain might be chain-free when on either side of the deal no one is waiting for a property transaction to be completed. Usually found from a first-time buyer or someone who is buying a second home.

If this is an area you would like to speak to someone about, our team are happy to help, get in touch today.

Looking to buy in Hertfordshire, Essex or surrounding areas? Wright & Co can guide you through this exciting process.

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