Unless the seller and the buyers are cash or first-time buyers, you will be reliant on the sale of at least one other property before you can move into your new home. Problems are a common occurrence with property chains, causing delays, added expense, stress, or all of the above.
What Are The Common Problems?
Whether you’re selling or looking to buy, understanding the most common property chain problems will help you achieve your goal with much less stress, delays, or extra costs.
Failed mortgage applications: Homebuyers are subject to strict lending criteria, and as a result, many sales fall through because the buyer lacks sufficient funds.
Significant problems found during a survey: buyers are under no legal obligation to pay for a survey on a home before they purchase it. However, when a survey is conducted and significant problems are found, a house sale can often fail. This is often due to the seller being unwilling or unable to fix the issues before the sale, and in some cases, because the seller refuses to reduce the price to reflect the problems.
Gazumping: This is when a seller accepts an offer from one buyer and then pulls out at the last minute to accept a better deal from another buyer.
Gazundering: This is when a buyer lowers their offer after already agreeing on a price, and the sale may fall through if the seller doesn’t accept this new deal.
Personal circumstances: A sale can fail for several personal reasons; one party changes their mind, a tragedy in the family or a relationship falls apart, and the mortgage lender removes their support.
How Can You Avoid Problems?
Many people often ask how can I prevent my property chain breaking? This article by Conveyancing Expert can help you learn everything you need to know to avoid property chain breaking. A property chain can be unavoidable if your dream home is already part of a chain, but if you haven’t found the right home yet, there are things you can do to avoid them.
- Opt for a chain-free buyer.
- Sell your home and rent while you look for a new property.
- Choose chain-free properties such as new-build homes.
- Get your finances in order by obtaining an ‘agreement in principle from your mortgage lender before you begin looking for a new property.
How Do You Fix A Broken Chain?
Despite the best intentions, both buyers and sellers can find themselves dealing with a broken chain. Often, a broken chain can be fixed with compromises from all parties involved; it is best to use a residential property solicitor in these cases as it is the job of the professionals to keep the lines of communication open.
However, if a compromise cannot be reached, there are some steps you can take to avoid any further issues in the chain. For example, if the seller withdraws and you don’t want to lose the buyer for your property, consider renting or moving in with family until you have found a new property.