25 April 2022

House Chain: What if it Breaks?

House Chain: What if it Breaks?

Imagine spending months planning your move, investing money and emotions in your dream home, and being close to the property-buying finish line. Then there’s a break in the chain, making your onward plans unattainable. UPTIX has a solution for a break in a house chain.

What is a House Chain?

When the purchase of a house is dependent on the successful sale of another property, it is known as a house chain. There can be as few as two houses in a chain, or as many as 15 – not as uncommon as you’d think.

What does Chain-Free mean?

If you’re lucky enough not to be selling a property, in order to buy one, you are considered to be “chain-free”. An attractive proposition in today’s housing market. And if you’re a chain-free buyer, purchasing from a party with no onward purchase, there’s no chain at all. In theory, when there is no chain, there is a reduced chance of the sale falling through.

Buying & Selling in a House Chain

In most property transactions, there will be a house chain. This can add stress to what is already a turbulent time. The longer the chain, the more variables exist, and this increases the chance of a property sale falling through. In fact, as many as one-in-three house chains fall-through in England and Wales (source). The coordination of a chain doesn’t just rely on the cooperation of each buyer and seller. There are many other parties to consider, including third-party representatives, such as estate agents, solicitors and lenders. This can make a house chain delicate and exposed to risk. 

Navigating a Broken Chain

When a house chain has reached a stalemate and a fall-through appears inevitable, it can be disappointing for all parties. This is especially frustrating when the transaction is close to an exchange of contracts and its fate relies on just one cog in the chain breaking. Whilst estate agents will do everything they can to get the sale back on track, this invariably means finding a new buyer for the house that has lost its purchaser. And a reset on the timer. Other parties can get frustrated and abandon their purchase too, so it puts everyone back to square one. 

Are there Solutions for a Break in House Chains?

If the representing estate agents can’t find a solution that meets with the remaining chain’s timescales, then UPSTIX can step in with a CHAINBREAK solution. UPSTIX is a property iBuyer, providing cash offers for properties within 48hrs, and can complete the purchase within as little as seven days. Great news for the rest of the chain! It enables home-buyers to continue with plans, and not miss out on any financial or emotional investments already made. As featured in The Times – Could quick-buy companies be the answer to broken chains?

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Value and associated costs used for illustrative purposes