4 min read
Buying a property chain free can be highly advantageous. Find out more about what being chain free means along with the potential benefits
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If you're a chain-free buyer, it means you don't need to sell a property to buy another one. This is an attractive quality to sellers and can put you in a much stronger position in a competitive property market. Learn more about property chains and the advantages of being chain free below.
In this article:
A property chain is a sequence of connected property transactions, typically involving multiple buyers and sellers. It's like a domino effect, where one sale depends on the successful completion of another. Each participant in the chain relies on others to complete their transactions, which can complicate the buying and selling process.
When a property is advertised as having ‘no onward chain’, it means the seller isn't buying another property at the same time; they're selling their home without needing to purchase a new one, so there's no chain of transactions after theirs. This might happen if the seller is moving into a rental property, relocating abroad, or selling a second home.
Similarly, ‘no upward chain’ means the same thing – the seller doesn't have an onward purchase, so there's no chain above them. Both terms are used to indicate that the seller's side of the transaction won't be delayed by them needing to find and buy a new property.
If you're chain free and ready to move get your conveyancing quote today
Buying or selling a house with no chain is generally easier and more desirable. This is because the conveyancing process can be a lot simpler, smoother and quicker. Because there are fewer people, and properties involved, there are usually fewer complications that you’ll have to deal with.
In property transactions involving a chain, the speed is dictated by the slowest link. Delays can occur if any participant encounters issues such as mortgage approvals, survey problems, slow responses to inquiries, or scheduling conflicts like holidays. In some cases, the chain can collapse entirely if a party decides not to proceed with the sale or purchase, a situation known as gazanging and gazundering.
Understanding who chain-free sellers are can help you identify more opportunities. There are three types of chain-free sellers:
Downsizers: These are homeowners who've paid off their mortgage and are moving into rental properties or retirement homes. Since they're not buying another property, there's no onward chain.
Investors: Some sellers are investors looking to sell properties without buying new ones, maybe because they're cashing in their assets. They might be selling rental properties and are usually keen to complete the sale quickly.
Developers: Companies that build new homes often sell them without an onward chain. Buying from developers can ensure a chain-free transaction, and they might even offer incentives like part-exchange deals.
A chain free purchase is typically quicker than one with a chain since there are no other properties to wait on. With this being said, there are always factors which could prolong a purchase, chain free or not. A standard purchase takes 12-24 weeks on average, however once you instruct your conveyancer, they will provide a more accurate estimate based on your specific circumstances.
January 23rd 2024-4 min read
The conveyancing process begins once an offer has been accepted on a property, how long this takes varies from case to case. There's no definitive answer however you can read our guide to find some rough timings.
Find out how long the conveyancing process takesAs a chain-free buyer, you have no property to sell before purchasing, which places you in a strong negotiating position with sellers. You may have leverage to negotiate on the price or conditions of your offer, such as asking for the property to be taken off the market immediately. Your ability to move quickly and decisively can make you a more attractive buyer, especially in a competitive housing market.
For buyers, purchasing a property without an upward chain, means that you won't have to wait for the seller to find a suitable property or for other transactions to complete before you can move in. This can be particularly advantageous if you're on a tight schedule, such as relocating for a new job or for a school catchment area.
While buying chain free has many perks, there are a few downsides to consider. Because these properties are desirable, they often attract many buyers, leading to increased competition and potential bidding wars. This can push up prices and make negotiations tougher.
Sellers might also expect a quick sale and be less flexible during negotiations. You may feel pressured to speed up processes like surveys and legal work to meet their timelines.
Even though there's no chain, it's crucial to do your homework. Issues like property problems or legal complications can still arise. Conduct thorough inspections and work with an experienced conveyancer to avoid any surprises.
If you're keen on buying chain free, here are some tips to help you find these properties:
Talk to estate agents: Estate agents often know which properties are chain free. Let them know you're specifically interested in chain-free options so they can notify you when such properties become available.
Search for specific property types: Properties like new builds, probate sales, or vacant homes are more likely to be chain free. Focusing on these types can increase your chances of finding a suitable home.
Use online property portals: Many property websites let you filter your search to show chain-free homes. This can save you time and help you find suitable properties quicker.
To avoid the added stress that comes with a chain, there are a few actions you can take:
Purchase a new build house. New builds typically have no upward chain. A lot of developers allow part-exchange options, which helps speed up the process if you have a property you need to sell.
Sell before you buy. Sell your current property and move in with friends or family, or rent, while you go through the process of buying a new home.
Look for chain-free buyers. You could hold out until you find a buyer without a chain, or even give your estate agents the instruction to only accept offers from chain-free buyers.
Target cash buyers or developers. Target developers or people buying with cash as this usually allows for a chain free, quick sale.
If you’re thinking about doing any of these, it’s worth checking that the benefits of being chain free outweigh the time, cost and effort it takes to make yourself chain free, or restricting yourself to only accepting chain free offers.
Being prepared can make your chain-free purchase even smoother. Here are some steps to take:
Secure financing ahead of time: Get a mortgage agreement in principle before you start house hunting. This shows sellers you're serious and financially ready to proceed.
Organise surveys and inspections: Once your offer is accepted, arrange for any necessary surveys and inspections as soon as possible. This helps prevent delays later on.
Stay communicative: Keep in regular contact with your conveyancer, mortgage advisor, and the seller or their agent. Good communication can help keep everything on track and address any issues quickly.
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