Property Chain explained: A look at property chains and our available Mortgage help!
Did you know a property chain is probably the single most notorious reason for a hold-up in the home-buying process?
Below we'll take a closer look at Property Chains, when and why a property chain occurs, and how they work. We'll also take a look at the Mortgage help we can offer.
Table of Contents:
What is a Property Chain?
So, just what is a property chain then? Well, a property chain (which may also occasionally be referred to as a housing chain) is nothing to do with security, or the burden of paying a mortgage over the next however many years!
No, a property chain is probably the most notorious reason for delays when it comes to buying a home and we'll investigate why in a moment or two.
OK! But is there a property chain in every house purchase transaction?
No, not at all! If you are buying a brand new property, or at a discount from a local authority, there is no property chain. There are no other parties involved apart from the builder or council as the vendor, and you as the buyer.
Similarly, if you don't have a property to sell, and the vendor's next home is to be purchased "with vacant possession", (in other words, that property is not dependent on the completion of a sale), then there is no chain, there should be no delays as a result of hold-ups with other property transactions.
When does a property chain occur?
A property chain occurs when there is a series of sale and purchase transactions on a number of houses that are all linked simultaneously.
For example, there may be six houses involved in a particular chain. Let's say that you are at the bottom of this chain as a first time home buyer with no property to sell. The sale and purchase of each property depends upon all other five parties being in a position to complete on the same day.
As you may imagine, for all six properties to be in a position to complete their transactions simultaneously, not only must all buyers have mortgage funds agreed, but there will also be an impressive engineering feat by the legal representatives to communicate with all the other solicitors to co-ordinate the exchange of contracts and the transmission of funds for completion of all other properties within the chain at the same time.
If any one of the five parties above you at the bottom of the chain cannot complete, perhaps they have been refused mortgage funding, or maybe because they have changed their minds and no longer wish to buy or sell, that is to say, they withdraw from their part of the transaction, and do not proceed to the exchange of contracts stage, then all the other transactions within the chain will be unable to proceed further, and the property chain will inevitably collapse, and will need to be rebuilt.
For all the other transactions to be in a position to complete, the failed link in the property chain must be replaced. This of course can mean substantial delays, as this particular link in the chain has to be replaced, and the process of purchase and sale will have to begin again.
Problems caused by property chains
So, as you might have gathered by now, property chains can create some serious hold-ups within the house buying process!
It may well prompt some of the parties in the property chain themselves to withdraw, and seek other purchasers, or to look for other properties without the complications of large chains.
Fast friendly Mortgage Help is always available from Shire Direct!
Naturally, we can't guarantee that you're not going to be involved in a property chain, but what we do promise is that we'll provide you with our personal service and very best attention at all times. So, if you are seeking a fast mortgage completion, Shire Direct will of course get into top-gear!
From the very outset you'll see that we place a great deal of importance on treating our customers fairly. We'll explain the entire mortgage process for you, warts and all, and a call to one of our friendly and experienced advisors will set the process in motion. We will of course examine your circumstances and requirements, and ensure that all appropriate measures are taken to ensure a speedy mortgage offer is received, and liaison with the solicitors to facilitate a readiness for completion at the earliest and most appropriate time.
Buying a property can be both exciting and frustrating! Here at Shire Direct we try to make the experience fuss-free and less stressful by making the mortgage process as simple, smooth and speedy as possible without cutting any corners.
Hopefully, we've successfully managed to answer any questions you may have had regarding the property chain and how property chains work. So if you are looking for a mortgage and think we can help then why not get in touch with us? Our Freephone number 08000 282 281 is open between 8am and 10pm everyday, including weekends, and you can enquire online at anytime you like! We'd love to hear from you!
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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