What Is A Property Chain and How Does It Work?

property chain

If you have ever watched a house-hunting program, you might hear the phrase “chain-free” being batted around. When you begin to search for a property yourself, it is not uncommon to end up a property chain. You need to make sure that you understand what this means and how you operate when you find yourself stuck in a chain.

What is the chain?

A chain occurs when there is a group of properties that all rely on the sale of each other to go ahead. In an ideal world, the chain will continue until everyone has bought or sold their respective properties. A will buy from B, who buys from C, who buys from D, and so on.

Occasionally you will see that elusive chain-free sale. This means that the seller does not need to buy a new property while trying to sell the one on the market (such as if they are selling a second property), or if the buyers have no property to sell, as might be the case with first-time buyers.

What are some of the risks of being in a property chain?

A property chain involves a lot of different people. In addition to each buying or selling party, there will be an estate agent, a solicitor, and sometimes a mortgage lender. Since there are so many different parties involved, it really doesn’t take much for a chain to collapse.

It could be as simple as someone deciding to back out of a purchase, or a solicitor not completing missives to the deadline or to a satisfactory standard. While you should try to avoid a chain collapsing, there is no guarantee that you will be able to stay away from one. The most you can do is ensure that you are correctly prepared to play your own role within the chain.

What do you need to do when buying a property?

Though you cannot control the outcome of the chain, you can make sure that you are in the best possible position on your own terms. Make sure you get your Agreement in Principle and find a solicitor to work with.

With this established, you need to get in touch with a mortgage adviser to help secure the paperwork you need. From credit checks to establishing how much you can actually afford, you need to make yourself look like the perfect purchaser. Though it can be inevitable depending on your circumstances, you should try to avoid being the one to break the chain where you can.

Get In Touch

Applying for a mortgage can be one of the more complicated aspects of buying a house, so you need to make sure that you find the right advisor to help you out. A good mortgage advisor will be able to explain your options to you, and will also be able to help you out if you do end up in a chain. Want some help? Get in touch with GPD Mortgage Solutions to find out more!