The linear nature of property transactions is frustrating both for buyers and sellers.
There is nothing in UK law preventing buyers from pulling out of a purchase before contracts are exchanged, meaning at any time up until this point the precarious chain on which the futures of a number of households may rest can be potentially broken.
The breaking of a property chain can lead to significant psychological as well as financial anguish; not only can homeowners be left out of pocket, but they can potentially lose a property they have become mentally attached to.
Government figures estimate as many as one in three property transactions in England and Wales fails to reach completion.
If you find yourself in the midst of a property chain, here are some situations you may encounter:
- If you have found your dream home but have failed to find a buyer for your current property, you could be the link to break the chain and may end up losing your chosen home. Not only does this waste the time and money you have invested in your search, but it may also place extra pressure on you if you are working to time constraints and have commitments you need to fulfil such as taking up a job in a new area.
- Deadlines on the completion of paper work are often the reason for chain breaking. If you have found a buyer but they are postponing elements of the process this can cause upset at the last moment, forcing you to pull out of the chain and again invest more time and money in the sale of your own property.
- In order to avoid chain breaking many homeowners seek out temporary solutions. If you are awaiting completion of a sale or lose your buyer, one option is to take out a bridging loan in order to cover your investments and allow the purchase of your future home to go ahead. This adds extra expense to your transaction and also relies on your own property selling at a future point. If your home has sold but you have lost the house you were planning to buy you may choose to move into rented accommodation until you find the right property for you and your family – this again will incur added costs.
If you are faced with a potential chain breaking situation like one of those above, there is another option which can help secure the links in your chain. By selling your home to companies like Gateway Homes Property Buyers, you can be guaranteed a quick sale which will allow you to progress with your purchase as planned. As experienced property buying experts, Gateway Homes can step in to help you prevent the chain being broken – saving you time and heartache in the process.