Estate agents are reporting that the fragility of property chains is one of the chief reasons that homes are taking longer to sell as many on the property ladder are unable to free up equity to make their next purchase.
A property chain is a sequence of linked purchases with those that are buying or selling their properties to each other at the same time, each of which is usually dependent on the buying and selling of the other properties in the chain.
Everyone in the chain is linked, the actions of every individual can have either a positive or negative impact on everyone else and if the chain breaks, then other transactions will likely be affected.
The expenses when a property chain collapses
If just one link fails, the whole chain can fall apart, potentially costing you a fortune in the process, not to mention dealing with stress and emotional heartache.
Some of the financial costs of a property chain break down:
- Solicitor’s fees
- Search fees
- Mortgage arrangement/booking fees
- Lender’s valuation fee
- Survey fee
Why property chains breakdown?
One thing that causes uncertainty for both buyers and sellers is that it’s impossible to predict what will happen with any property chain. Until a buyer exchanges, they are not legally bound in any way to see the sale through to completion.
With the average property sale in the UK taking 96 days to complete, there is plenty of time for people to change their mind and drop out, causing the chain to break down.
Common reasons for breaks in property chains:
- Buyers or seller circumstances change while chain in progress
- Finance falling through at the last minute
- Paperwork deadlines are missed
- Issues come up in the survey
- A buyer changes their mind
- A buyer reduces their offer (gazundering)
- A buyer outside the chain comes in with a higher offer (gazumping)
Property chains can be fragile because they are dependent on so many elements all coming together, but when economic uncertainty, base rate interest rate rises, and the spectre of Brexit are added in, then chains can become even weaker and the UK property market is currently experiences this weakness of chains.
For people who are looking to buy their dream home, the sale on their own home falling out of bed can cause a great deal of distress and worry, because they may lose the onward purchase. However, if the worst happens and your buyer drops out, there is a solution.
If you are the victim of a chain break situation, we can step in an replace your original buyer by buying your property for cash and therefore reinstating the chain and allowing your onward purchase to continue to completion. As we are a cash buyer, we do not add to the chain as we have no property to sell in order to buy yours.
Despite the slowdown in the property market, Open Property Group are still actively buying properties in any condition in England and save homeowners the hassle of selling a house privately. Unlike other companies you may hear about, we are genuine cash buyers with a cash fund standing by to purchase your property. We are not a lead generator who sells the lead on to a third party. We can demonstrate, via our solicitor, that we have cash funds in place and can complete on your property in as little as 7 days.
So, if you are involved in a property chain break-down, then give us a call for a no-obligation offer that we will present to you within 48 hours. We may not even need to visit your property to make the offer.There are no additional fees such as estate agent fees, and we will also pay your solicitor’s fees.
So while we will be looking to pay below market value for your property, you are guaranteed a sale and you may save on selling costs. Furthermore, there is no price to put upon the emotional distress of losing your dream home.
We are a family-run business with over 30 years experience as professional property buyers. Read more about how you can sell your house fast with Open Property Group.
We pride ourselves on our fair and ethical service so you have nothing to lose by contacting us today to see if and how we can assist you.
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