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What is a Property Chain and How Can You Avoid Them?

Moving Home Mortgage Advice in Leeds

A common dilemma that some homebuyers come across is property chains. Being stuck in a property chain could slow down your home moving journey, if not put it to a halt.

That said, you may come across all sorts of different problems and hurdles when obtaining a mortgage. Whether your application is stuck in the pipeline or there’s something to do with your offer not being accepted, there’s always something that comes up when you are in the process of moving home in Leeds.

What is a property chain?

A property chain is a link of house purchases that rely on each other for each purchase to go through. If you are a first time buyer in Leeds, you will always be at the start of the chain. Whereas, if you are selling a property, you will be placed at the end.

Imagine someone that is ready to move into the property they’re buying. The buyer needs to wait for the seller to move out first. That said, if the seller is in the same situation, they too, are waiting for their seller to move out to move in.

How long will the process take in a property chain?

The answer to this question is entirely situational, as you are unaware of your seller’s situation.

You may not even know that you are in a property chain, the whole process could run smoothly. Everyone hopes for this situation; who doesn’t want a quick and straightforward moving home process?

If things turn sour, you may be stuck in a waiting scenario. We recommend beginning your process with at least six months of preparation. Leaving you plenty of time to search for that dream home and time just in case you get stuck in a property chain.

What happens if my property chain breaks?

Unfortunately, if you are linked with a property chain and one purchase does not go through, the whole chain behind it could suffer. When a property chain breaks, you will have to wait or look for another property.

If the property chain breaks at your purchase, you may be able to stop it from damaging the entire chain if you act quickly.

If you’re selling, you could contact the people planning to buy your property by speaking to your estate agent; this way, you can inform them of the situation sooner rather than later.

Whether it’s something wrong on the seller’s level or your level, there are still ways to prepare for a break in the property chain.

For example, you could buy a property that isn’t in a chain or a small chain, sell your property, rent temporarily, buy a new-build property, etc.

How can a property chain break?

A property chain can break for many different reasons. It could happen at your’s, your seller’s or even your buyer’s level:

  • The lender declined the buyer’s mortgage application
  • A seller decides that they don’t want to sell their property
  • A buyer/seller loses their job or becomes ill
  • The property survey that was carried out on the property highlighted some significant damages and structural issues.

These are just a few examples, and there are many more reasons. The length of the property chain that you are in will depend on how drastically these situations impact your ability to move home.

How can I avoid a property chain?

It can be challenging to avoid a property chain, especially if you’re buying at a busy time of year or when the market is hot.

Moreover, you could research and talk to your estate agent to know your position during the application stage. Arranging your finances as early in the process as possible would be wise. The more that you are prepared for things that could go wrong, the better.

If you avoid a property chain (also known as ‘chain-free), you should be able to continue straight through the moving home process. This assumes that you provide evidence that you can afford a mortgage and deposit the property.

Are you thinking of moving home to Leeds?

If you are considering buying and selling your property, why not let our moving home mortgage advisors in Leeds step in and help you through your process.

You can book yourself in for a free mortgage appointment. Get started today, and we may be able to help you get through the moving home process stress-free. 

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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