Selling a property can be an emotional and frustrating experience at the best of times. The experience can be further complicated if you are involved in what is known as a property chain. A property chain is where you have a sequence of linked house purchases each dependent on the preceding and succeeding purchase. The longer the property chain the greater the risk that it can collapse. All it takes is for one buyer in the chain to withdraw from their purchase and all the linked purchases both up and down the chain will collapse. When you consider that one in three sales fail to complete once the offer price has been accepted then it is clear that being involved in a property chain is a fragile situation.
Property chain breaking solutions
There are three property chain breaking solutions to consider:
Sell before you buy Obtain a bridging loan Use Molae Properties’ property purchasing service
Selling before you buy
Although you avoid the pitfalls of a property chain you will face other challenges. For a start, you will need to find rental accommodation and move home. You also can not be certain how long you will need to rent. You should also consider that the market may move whilst you are renting. The market could move in your favour if property prices drop or it could move against you if property prices rise. Essentially, unless you have peerless economic forecasting skills you are taking a big gamble on the property market.
Obtaining a bridging loan
If you’ve found your dream home and you can raise a bridging loan to buy it this will avoid the property chain scenario. The downside is that you don’t know how long it will take to sell your home during which time you will have two mortgages to pay. Bridging loans are expensive with interest rates ranging between 10-20% per annum. You need to be confident that your property will sell on the open market within a reasonable time frame. Ideally, only sign up to the bridging loan once you have exchanged on the new property. Otherwise you incur the costs of obtaining the bridging finance without the certainty of having a property to buy. You still face the risk that the market could move against you and if your property doesn’t sell reasonably quickly you could find yourself under pressure to sell at a reduced price.
Molae Properties quick purchasing service
The final property chain breaking solution is to use our quick property purchasing service. The purchase can be organised quickly. The completion date can be set at a date to coincide with your ongoing purchase. The risk of the market moving against you is eliminated as the two transactions happen at the same time. This solution is quick, hassle free and removes all the financial uncertainties you face with the other solutions. It is undoubtedly the most convenient of the three solutions. In return, you must be prepared to sell your property at a discount to market value. As well as avoiding the property chain scenario this solution has the advantage of providing financial certainty. All the costs can be considered upfront. What you need to weigh up is whether the discount to purchase price outweighs the financial costs and uncertainties of the alternative solutions.
We will be happy to provide you with an offer to purchase your property to help you make this decision. To find out more simply contact us and complete your details.
Although property chains are very common in the house-buying process, they can often be frustratingly slow. However, the worst-case scenario is when the property chain collapses or breaks down completely. This results in the seller (and potentially the buyer) having to return to “square one” in terms of the entire transaction. This can cause problems; particularly for those who are looking to sell their home or flat quickly. Let’s look at some of the main causes of a property chain collapse as well as some potential remedies.
When it comes to selling property, property chains are one of the biggest headaches you can face. According to research, up to one in three intended property purchases falls through, leaving buyers and sellers with no choice but to start the process again.
There are numerous reasons why property chains can break – they’re especially susceptible where chains are long and complicated with many links on the way – and it’s hard to deal with the fact that someone you don’t even know dropping out of their sale or purchase could result in you losing money, time and effort with your property plans. We’ve put together the lowdown on some of the common reasons for property chains to collapse, plus some ideas on how to avoid the dreaded property chains in the first place.
There are plenty of reasons why it’s beneficial to sell your house for cash. If you’re still sitting on the fence and unsure about taking this property selling route, here’s a guide to the top five reasons why selling for cash is a good move, both for your bank balance and your peace of mind.
1. Selling your house for cash is quick and speedy
Compared to going down the traditional route of listing your property with an estate agent, having it marketed to potential buyers, having multiple views and then, hopefully, accepting offers on it, selling your house for cash is a far speedier option. Amazingly, you could even be exchanging contracts within as little as 24 hours!
If you’re looking to sell a property, then have you considered a property part exchange? It’s a useful option if you’re looking to sell quickly and takes some of the stress and hassle out of home selling. Here’s the lowdown on the advantages of opting for part exchange.
Part exchange often gets overlooked by property sellers, but there are certain circumstances where it’s definitely worth putting it on your radar. A property part exchange comes into its own particularly when you’re looking to sell your existing home and buy a new property and don’t want to hang around for ages waiting for the perfect buyer, only to then miss out on the house of your dreams.
Quick property sales can be a bit challenging; particularly if you’re not familiar with all of the choices available. Whether your sale needs to take place to free up cash, or you’re relocating to another part of the UK, there are several routes which you could take. Let’s look at some of the most common options.
Part exchange plans have gained popularity due to what many see to be a stalling housing market in London. The basic principle behind these schemes is that an owner can trade in, or part exchange their existing home to a builder. In return, the value of this home is deducted from the cost of a new property. There are several benefits to part exchange plans and it’s worth learning about them if you’re looking to sell soon. So let’s look at part exchange homes and how these plans can help you get a quick sale.
If you are looking for a quick property sale there are a number of factors that must fall into place. Choosing estate agents, avoiding property chains and finding the right buyer are all key concerns. You may or may not have also heard of terms known as “gazumping” and “gazundering”.
In the world of real estate markets, many of us have heard the term “property chain” in the past. What does this phrase mean, why is it an undesirable situation and what steps can you take to avoid such a scenario? These are all very important questions to answer. Let’s take a closer look.
The sale of my property was well managed with regular communication and advice and support provided throughout the process. The company also provided legal support through one of their panel solicitors which was professional friendly and reassuring during what was a complex sale. They are trustworthy and reliable and I would recommend this company to anyone looking to sell their property. Thank you for making this a much easier process. R. Mangal, Leyton, London, E10