How long does it take to buy a house with no chain?
‘Chain’ is a word that often crops up when buying and selling a house. Simply put, it is a series of linked houses which are all being sold/bought. Each sale is dependent on the preceding and succeeding purchases.
What does it mean when a house says ‘no chain’?
A property that is not in a chain, or is ‘chain-free’ means that the property is being sold by someone who doesn’t need to buy a new home – maybe they are moving abroad or a property is being sold on behalf of someone who has passed away. New build properties are also chain free, because they have never been occupied. Having no chain considerably speeds up the house buying process as the buyer will not have to wait for the seller to organise their own purchase and move.
How long does it take to buy a house with no chain?
There is no definitive answer to this, however when there is no chain, the process is considerably quicker.
A basic timeline of buying a house is:
Finding the right property: The length of time this can take depends greatly on personal circumstances, available properties, the research you do on the area. Typically it takes around three months for homebuyers to look at properties and make an offer, though it can be much quicker, or much longer.
Getting a mortgage: Once you’ve had an offer accepted, you will need to instruct a solicitor to deal with the legal side of things. When applying for a mortgage, it’s a good idea to be well prepared with all the necessary documentation – bank statements, pay slips etc. Generally, it takes around a month from making the application to receiving a formal mortgage offer.
Exchanging contracts: Up until this point, nothing is legally binding, but once you have signed and exchanged contracts, you have legally committed to purchasing the property. Again, this can take around a month.
Completing: The final stage involves the buyer paying the deposit and any fees and the mortgage will be finalised. There is usually a four-week deadline from exchanging contracts to completing, and on the date of completion, your mortgage will start and you’ll get the keys to your new home.
If you are purchasing a new build home, most developers will require you to exchange contracts and pay your deposit within 28 days of reserving a plot (and paying your reservation fee). Your reservation fee is usually around £500 which will normally be refunded when you complete. As long as the property is complete and you have no problems with arranging a mortgage, the actual process of purchasing a chain free, new build property should be quick and straightforward.
How can a chain delay your purchase?
Unfortunately, when you are in a property chain, you do not have any control over properties further down the chain. If one property has a problem, maybe with the searches, or the buyer has an issue with a mortgage offer, then this can delay the entire chain until it is resolved.
How many homes are chain free?
Around 10% of properties on the market are chain free. This will be clearly advertised as it is a bonus when looking for a new home.
New build properties are chain free as they are brand new. When you are buying a new home straight from the housebuilder, there are no onward chains to worry about. Some housebuilders even have Part Exchange offers, so you don’t have to worry about problems with selling your current home.