When it comes to buying a house, you’ll encounter a lot of property jargon along the way. ‘Chain-free’ is one of those terms that’ll come up a lot, but what does chain-free actually mean? And how does it impact you?
Key takeaways
- The sale of chain-free properties are not dependent on the sale of another property
- Chain-free property sales are more straightforward and less likely to fall through
- Fixing a broken chain takes open communication, flexibility and professional advice
- New builds are inherently chain-free and a great option for a straightforward buying process
What does chain-free mean?
A chain-free property refers to a home that is being sold without the seller needing to purchase another property at the same time. As such, the transaction is much more straightforward because it doesn’t depend on the completion of another sale.
There are numerous scenarios in which a chain-free property will be available, such as:
- If the seller is moving to a rental property or with family/friends
- An investor is selling the property so does not need to buy another home
- The property is being sold by an executor following the death of the owner
- It’s a new build property sold by a developer
- The seller is relocating abroad
- The seller is moving into a retirement home
What does no onward chain mean?
When a property is listed as having ‘no onward chain’, it essentially means the same thing as ‘chain-free’. No onward chain means that the seller does not need to buy another property in order to sell the one you’re buying. No onward chain and chain-free can be used interchangeably.
What does no upward chain mean?
You probably guessed it but no upward chain means the same thing as no onward chain and chain-free. The sale is not dependent on the seller purchasing another property.
What are the benefits of buying a chain-free house?
Buying a home chain-free comes with several significant benefits:
1. Reduced risk of delays
With no linked transactions to depend on, you reduce the risk of delays significantly. When buying chain-free, the process tends to be quicker and smoother, allowing you to move in sooner. A chain-free purchase could take just eight weeks to complete since there are less parties involved and less paperwork.
2. Lower chances of chain collapse
Property chains can be fragile. If one link breaks then the entire chain collapses, causing delays and financial losses. There’s nothing worse than getting your heart set on a property and losing it at the last minute due to issues further down the chain.
3. Increased certainty
Similarly, buying chain-free provides more certainty and peace of mind. Without a chain, there’s less chance of unexpected issues cropping up and causing less hassle.
4. Negotiation leverage
In a chain-free situation, the buyer and the seller both have more negotiating power since the absence of a chain can make your offer more attractive. This can give you an edge over other buyers and even result in you paying less for the property.
How to fix a broken property chain
If you find yourself dealing with a broken property chain, there’s a few steps to consider:
1. Open line of communication
Maintain open and transparent communication with all parties involved to understand the cause of the break and explore possible solutions.
2. Bridging loan
A bridging loan can provide temporary financing to bridge the gap between the sale of your current property and buying a new one. So, instead of selling your home first and purchasing a new one with the available equity from the previous, you’ll use the loan.
3. Be flexible
Being flexible with your timelines and managing your expectations can help keep the chain intact and put less pressure on the other parties involved.
4. Rent in the interim
Another option is to sell your home first and rent short-term while you look for your new property. Becoming a cash buyer can work in your favour in many instances.
5. Seek professional advice
We always recommend seeking professional advice. Get in touch with an estate agent or solicitor who can assist you in navigating and resolving chain-related issues.
Are new builds chain-free?
Want to avoid the risk of a broken chain altogether? New builds have many benefits, one of which is that they are all chain-free. This makes new builds an attractive option for many buyers.
Since new homes are sold by developers who do not need to purchase another property, the transaction is much more straightforward and reliable. You don’t need to worry about the chain collapsing or losing out of any money as a result.
Are chain-free properties more expensive?
Chain-free properties are often in high demand due to the reduced risk of delays and transaction failures. This demand can drive up prices, especially in competitive markets where buyers are willing to pay a premium for the convenience and certainty that a chain-free status provides.
That said, chain-free properties are not always more expensive and it’ll depend entirely on a case-by-case basis. For example, many new homes and off-plan properties offer an affordable option for buyers and come with no upward chain.
Buy a chain-free home
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