Advice for those stuck in a property chain
Property chains are very common but being stuck in a slow moving one can add a lot of extra stress to an already stressful time. Simply put, a property chain is when three or more people are linked together all buying or selling a property and unless you’re a first-time buyer, it’s likely that any house purchase you make will form part of a link in a property chain. With demand for housing currently outstripping supply and rising costs creating issues with affordability the whole buying process has the potential to slow down considerably which increases the risk of the entire chain collapsing. Even a small problem or delay in the process can mean that property transactions fall through wasting huge amounts of money and time in the process and causing misery for all involved.
If you do find yourself stuck in a property chain Scott Clay of specialist lender Together has a few tips: Complete your sale and rent If you are in a chain and keep on getting held up by finance issues or problematic surveys, you could consider completing the sale of your current home and moving into rented accommodation. This is beneficial both because you’ll be ready to move as soon as you find your dream property, and because you’ll be ready to move when the seller is making you an attractive prospect for them. Use a bridging loan If your buyer is causing delays in the chain and you’re concerned that you may lose your purchase because of the hold ups, then you could try a bridging loan. A bridging loan typically doesn’t need to be paid back before 12 months and allows you to borrow the money required for the purchase of your property while waiting for money to come in from other sources (usually the sale of a property). Get good financial advice Nothing can beat speaking with a specialist financial advisor or mortgage broker about your own individual circumstances. They can help you to look at all the options available to you and to find the right one.
Make sure you carefully consider all your options and are aware of the risks involved with taking on any sort of loan or property purchase. Get good financial advice: Nothing can beat speaking with a specialist financial advisor or mortgage broker about your own individual circumstances. They can help you to look at all the options available to you and to find the right one. Make sure you carefully consider all your options and are aware of the risks involved with taking on any sort of loan or property purchase.
