A chain, when used in reference to the process of buying or selling a house, is a sequence of linked house purchases, each of which is dependent on the preceding and succeeding purchase. … On that day, all the households involved in the chain leave their former homes and move to their new homes.
How does moving house in a chain work?
If you’re a first-time buyer or don’t have a house to sell, then the chain will start with you. The chain will then end with a seller who is only selling a property. The chain will usually start around 11am. Depending on the chain’s size, it could end at 4pm when the last buyer picks up their keys.
What does a chain mean when buying a house?
A property chain is created when more than one buyer is involved in a transaction. For example, say you are buying a home from someone and they are moving to a new home they are buying from another. … Chains are pretty common in residential property transactions and they can be quite long!
Do all houses in a chain complete on the same day?
The Completion Date is not set until we exchange contracts. … When you are a party in a chain of transactions, we’re unable to exchange contracts until all the other buyers and sellers have finished their enquiries and are able to complete on the same date.
How does a property chain end?
A property chain will typically begin with a buyer who is not also selling. The end of the chain will be a seller who is not buying. The other links in the chain consist of everyone else involved in the transaction – those who are both buying and selling property.
How does deposit work in a chain?
Deposits in a chain
If there is a chain, it is usual that a seller may be using the funds they receive from their buyer to pay for some, if not all of their onward purchase. As such, the deposit lodged by the buyer at the bottom of the chain may be taken into account and passed up the chain.
How long does chain take to complete?
You’ll probably expect to complete anywhere between one to two months, if there are no other issue or delays with a house repayments application.
What does chain mean property?
A chain, when used in reference to the process of buying or selling a house, is a sequence of linked house purchases, each of which is dependent on the preceding and succeeding purchase.
The property at the bottom of the chain is the person who needs to sell before any other transactions can happen. The top of the chain is the person who can move out without finding a property to buy. As an example – Mr B owns property X. When he sells it he will move out and rent somewhere else.
How long does it take to move when in a chain?
The conveyancing process in a chain might take anywhere between 6 to 12 weeks – whereas if your fate is not linked to other property transactions going smoothly, that wait could go down to around 4 weeks.
Should I start packing before exchange?
When exchange is imminent you need to start making arrangements to remove your belongings, which means you need to start getting your packing materials ready. Usually the completion date is shortly after exchange, for example you may exchange with completion in 2 weeks.
Will my solicitor tell me when we exchange contracts?
The most common method is by telephone. Once satisfied that everything is in order and mortgage instructions from your lender have been received, your solicitor will call the seller’s solicitor to exchange contracts. … You will be notified by your solicitor of exchange. Check your buildings insurance is in place.
How long to move into a house with no chain?
On average, the process of completing a property conveyance without a chain can take up to about 4 weeks. This is good news for a person planning to move into their new house in the shortest time possible.
What is a chain free buyer?
“Chain-free” means the property you want to buy isn’t reliant on the successful purchase or sale of other properties. As a chain-free buyer, your purchase is not dependent on the sale of a property you currently own. For example, all first-time buyers are chain-free buyers.
How do you break a housing chain?
One way to break a chain is by extending the mortgage on your existing home and using that money as a deposit for the mortgage on the new property. You can then either: Rent out your old home, and use the rental income to pay the mortgage on that property. This can be a good investment property.