If you are a homeowner and thinking of selling up and buying a new property, you may have heard of the concept of being ‘chain free’. Putting yourself in this position can give you more financial freedom and remove many of the frustrations that can come with selling and buying at the same time.
According to research carried out in 2022, around 70% of transactions were chain-free, a number which has steadily been on the rise in recent years. Here we look at what it means to be chain free in more detail and how it could help your property search.
What does it mean to be chain-free?
When you are chain-free you are not currently the owner of a property that needs to be sold in order for you to buy your next home. This means you are only buying a new property and not relying on the funds of another house to afford the new one.
What are the benefits of being chain-free before buying a property?
Being chain free benefits both buyer and seller in different ways, such as:
Sellers prefer chain-free buyers
Property sellers usually give priority to chain-free buyers because of the reasons stated above. This can give you a huge advantage against other potential buyers who are tied into a chain and the seller has more assurance that the sale will be completed.
Faster sales
If you are chain-free there is an increased likelihood that you will be able to complete the transaction faster than people who are in a property chain. This is because you can’t be delayed by issues to do with a current property that are outside of your control.
No as much stress
Being chain free gives you more control over the buying process. You’ll have peace of mind that you are not relying on another party to successfully complete the purchase. Of course, there are always things that are out of your control but being chain free cuts down quite a few of them.
The buying process is less complex
As a chain-free buyer your only concern is about the property you want to buy and not about issues related to an existing property someone else is buying from you. This should make the process much more straightforward and less complicated to manage.
How do I become chain-free?
One way to partially break free of a property chain is to buy a new home. This means there will be no upward chain (you are not buying from an existing owner) and you may be able to sell your home as part of a part-exchange scheme.
Similarly, you could look to buy chain-free properties such as vacant possessions. These are empty properties (that may require some work to improve their condition) and it means there is no onward chain involved.
A more drastic option could be to sell your current home and move into rented accommodation. This breaks you free from the property chain and you can focus on searching for a new property. You could also consider moving to your desired area to live in a rented home to see if you like what it has to offer.
What if I can’t become chain free?
Becoming chain free can be difficult, especially if you have everything tied up into your current home. However, there are some things you can do to make yourself more competitive in the market:
· Start your search for a new property as soon as you have accepted an offer on your home
· Ensure you have full approval for any extra funds that may be needed for buy a new home before you put your property up for sale
· Secure the services of a conveyancer so they can get to work as soon as you appoint an estate agent
· Work with an estate agent that take a proactive approach, which means they will actively chase solicitors, agents and movers involved in the chain, so it doesn’t become stagnant
Squires understand the challenges that come with being in a property chain and work closely with sellers to find the right solutions at the right time. Get in touch with our team today to discuss things in more detail and to see what we can do to help you.