Research from Home Selling Expert suggests that a full 31% of all UK home sales fall through at least once before a transaction is completed. This essentially means that buyers and sellers alike have a one in three chance of their plans being laid to waste by broken property chains.
A broken property chain occurs when one or more links in the chain of buyers and sellers fall through, resulting in the entire process being delayed or falling apart. This can be frustrating and costly for all parties involved, but it is also something that can be avoided in many instances.
Of course, there is very little anyone can do to control the behaviour of others involved in a property chain. Buyers and sellers alike are at the mercy of others within the chain, over whom they have little to no influence.
Even so, there are several steps that buyers and sellers can take to reduce the risk of a broken property chain.
Examples of these include the following:
- Be honest and open. It is important for buyers and sellers to be upfront about their circumstances and any potential issues that could affect their ability to complete the sale. This includes disclosing any financial issues, such as credit problems or debts, as well as any concerns about the condition of the property.
- Get a mortgage in principle: Buyers should obtain a mortgage in principle before starting the property search. This will give them a better idea of what they can afford and can also help speed up the process once a property has been found.
- Choose a reputable conveyancer: Both buyers and sellers should work with a reputable conveyancer to handle the legal aspects of the sale. A good conveyancer will be able to identify any potential issues and work to resolve them in a timely manner.
- Be prepared for delays. Even with careful planning, delays can still occur. It is important for buyers and sellers to be prepared for this possibility and to have contingency plans in place in case the sale is delayed.
- Be patient: The property process can be stressful and time-consuming, and it is important for all parties to remain patient and flexible.
- Get a survey: Both buyers and sellers should consider getting a survey of the property before the sale. This can help identify any potential issues and allow both parties to address them before the sale is completed.
- Consider a bridging loan: If there is a significant gap between the completion dates of the two properties, buyers may want to consider a bridging loan to cover the period in between. This can help reduce the risk of the sale falling through due to financial issues.
- Get a HomeBuyer report: A HomeBuyer Report is a detailed document that covers the condition of the property and any issues that need to be addressed. This can help buyers understand the true condition of the property and make informed decisions about the purchase.
Of the mitigation methods outlined above, the single best way to reduce the risk of a broken property chain is to accelerate the completion process with bridging finance.
Bridging loans afford mainstream bidders all the benefits usually reserved for cash buyers. Secured against the value of their current home, bridging finance can be arranged and accessed within a few working days, enabling buyers to beat competing bidders to the punch. For more information on any of the above or to discuss the benefits of bridging finance in more detail, contact a member of our team anytime for an obligation-free consultation.