The UK property market has dramatically changed over the past few years, with record-breaking house prices and changing laws and regulations. This presents obstacles for prospective buyers that can dampen enthusiasm, alongside the complexities of the property chain.
In essence, a chain is a series of linked property transactions, where the completion of one sale is contingent on another. It’s a practice adopted by many property owners, but it can be a source of stress and delays.
The time it takes to sell a property is anywhere from 17 to 34 weeks – that’s without the potential pitfalls faced by buyers and sellers with chain property. With this in mind, implementing proactive strategies can significantly improve your chances of a smooth property transaction.
Common Chain Property Issues
Property chains are fragile, and a single link breaking can disrupt the entire buying or selling process. It’s estimated that one in three house sales in the UK fall through due to property chain problems, all the way up to contract exchanges.
- Mortgage difficulties: Securing a suitable mortgage can be challenging in a competitive market and is subject to delays and rejections.
- Survey issues: Property surveys can uncover unexpected problems that prevent buyers from following through.
- Legal complications: Title disputes and adverse possession claims can halt the conveyancing process.
- Buyer or seller remorse: Sometimes, the chain can collapse as buyers and sellers change their minds.
- Valuation discrepancies: This happens when a property is valued lower than the agreed-upon price.
Strategies to Avoid Chain Issues
To increase your chances of a smooth property transaction and reduce the likelihood of financial losses, you need to build a strong chain with the following strategies:
- Get pre-approval for mortgages: This involves securing your finances before making an offer and ensuring you have sufficient funds for deposits and fees.
- Setting realistic timelines: Understand that property transactions take time and delays are a reality. This will avoid you putting pressure on the chain.
- Thorough property cheeks: Conduct comprehensive surveys and legal checks before proceeding and address issues upfront.
- Clear communication: Property transactions involve a lot of moving parts and it’s essential to maintain open, regular communication with all parties involved in the chain.
Financial Solutions for Chain Breakdowns
While we should always attempt to prevent them, sometimes chain breakdowns occur despite our best efforts. In such cases, financial solutions such as bridging loans can provide a temporary lifeline to help you purchase your new home before selling the existing property.
Always explore all available options and seek professional advice to find the most suitable service for your situation, if you’re ever unsure.
