What is a Property Chain and How Can You Manage It? 

If you’re looking to move house in Rochdale or elsewhere in Greater Manchester, it might be hard to avoid getting caught up in a property chain. Property chains have a reputation for being one of the major stresses of moving home – mainly because they can lead to hitches in your sale that are beyond your control.

The reality, however, is that while some chains do collapse, most work out, allowing everyone to move into their dream home on the correct day. And while you can’t always predict property chain problems, there are things you can do to manage your house chain to give it the best chance of success – or even avoid being part of one altogether.

If the thought of being a link in a property chain is holding you back from selling your home in Rochdale, read on for everything you need to know about house chains in Greater Manchester.

What is a property chain?

A property chain is, as you might expect, a number of linked transactions, which are all reliant on each other going through smoothly.

What does chain-free or no chain mean?

Chain free chain means that the property owners do not have a place to sell, so the transaction is likely to be more straightforward. The home may also be described as no onward chain – they mean the same thing. Properties are chain free for various reasons –

• it is being sold because someone has died or gone into a care home
• the owner is moving in with relatives or a partner
• it’s a rental home that the landlord had decided to sell
• It’s a new build property with no previous owner.

Who is at the top and bottom of a house chain?

Property chains start with a first-time buyer who doesn’t have a property to sell and end with someone who is selling but not buying – for one of the reasons listed above.

What is the average property chain length in the UK?

Because everyone’s circumstances are so different it is difficult to put a figure on the average UK property chain length. Many chains are quite short, for example, a first-time buyer purchasing a home from a family buying a larger home from an older person, who is moving in with relatives. This would be a chain of just two properties. In other cases, there may be 10 or more links in the chain.

How do property chains work?

For a property chain to work, each buyer completes all the steps in their purchase – the survey, mortgage approval, conveyancing etc – at the same time. The completion date for every link in the chain is the same, meaning that the transactions happen simultaneously.

What are the common property chain problems?

Chains do sometimes break for a variety of reasons, which can’t always be predicted. The most common ones are:

• Someone in the chain has a change of mind.
• A survey throws up an issue that causes a buyer to pull out or leads to a delay.
• A buyer’s mortgage offer falls through.
• Someone in the chain has a change in personal circumstances – job loss, divorce, a death in the family.
• Someone in the chain can’t find a buyer for their home.
• The sale process takes so long that someone in the chain backs out.

How do I avoid property chain problems?

You can’t always prevent onward chain problems, but you can maximise your chances of a smooth sale:

• Be very pro-active in doing all you can to make your sale happen. Do all the legwork to instruct your solicitor, order your survey and get your mortgage approval as early as possible.
• Have all documents, certificates and guarantees to hand and respond quickly to any enquiries. Sign and return any paperwork from your solicitor as soon as possible.
• Choose both your estate agent and your conveyancing solicitor carefully – look for personal recommendations and a good record of managing sales in the Rochdale area – especially complex chains.

How do I avoid a chain altogether?

While most chains run smoothly, if you need to move quickly you might wish to restrict yourself to chain-free properties – but remember, this will limit your choice when it comes to finding a new home.

There are also ways to make yourself a chain-free seller. You may decide to sell then move in with friends or to rented accommodation, while you find a place to live. This has advantages for you as a buyer and a seller – making you a more attractive prospect – but it will mean moving twice and extra costs if you need to rent.

If you have the funds or are able to get a bridging loan, you could also buy before you sell, again helping you break the chain and avoid the disadvantages that come with it. But you need to weigh up the pros and cons.

If you’re looking to buy and sell property in the Rochdale area, we are a local estate agent with plenty of experience of managing chains from the simple to the complex. Contact us to discuss your home move or request a no-obligation market appraisals of your property.

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