Whether you are buying or selling a house, it is normal to hear all kinds of new words and phrases being thrown about. From ‘no onward chain’ to ‘house chain’, not understanding the terminology can make the already overwhelming process that much harder.
In this blog post we are going to be looking at what exactly no onward chain means, as well as what a property chain is, why they fall through, and where you may find a property that is classed as having ‘no onward chain’.
Looking for a quick answer? Check out our drop-down menu below?
Go to the full page to view and submit the form.
To first understand what no onward chain means, we must first look at what the property chain is. A property chain (also referred to as a house chain) is a term used to describe the way in which house sales work. The house chain is a way of describing how house sales on the property market are all linked together, similarly to the links in a chain.
A vast majority of property sales are part of a house chain as most people cannot afford to buy their dream home without first selling their current property.
An example of how the property chain works would be a first-time buyer who is looking to purchase a small flat. The owner of the small flat is looking to buy a small house, and the owner of the small house is looking to buy a larger house, and so on. Each person depends upon the next in order to be able to move further up the property ladder.
Because of this if one person drops out of the chain, it causes the house chain to collapse and stops the other sellers involved from being able to continue in the chain.
The term ‘no onward chain’ is another way of saying chain free. If a property is one that is classed as having ‘no onward chain’, it means that it is ready to be sold immediately. The buyer or seller does not need to have sold their previous property in order to progress the sale.
Why Is No Onward Chain Good?
No onward chain is seen as a positive thing as it means that you are reliant on no one else to complete the sale of your property and simplifies the entire sale process.
As every house sale is different, there is no set amount of time that a no chain property sale can go on for. If you go through a genuine cash buyer, the sale can be completed in as little as 7 days. According to The Advisory, if there is no onward chain and a buyer has the cash ready to go then the sale should take no longer than 8 weeks from acceptance to completion.
As previously mentioned, as every house sale is different, it is hard to say exactly how long a no chain property purchase would take. As long as your mortgage is approved, you could potentially buy a house with no chain in as little as 10 weeks from having your offer accepted to completion.
Even though being part of a house sale that has no onward chain drastically reduces the risk of your house sale falling through, it does not completely protect you against a sale falling through. Some of the most common reasons that these sales may fall through are due to:
Even if you have a property that has no onward chain, the safest route you can take to avoid disappointment on the market is to make sure that you have funds in place to buy your next property or to sell up first.
It is however difficult to move from one occupied house to another whilst avoiding chains (no onwards and other kinds).
Because of this, it is worth considering if there is anywhere that you could temporarily stay whilst you look for a new property safe in the knowledge that you have the funds available.
This covers everything that you need to know about what no onward chain means. If you have any questions, queries, or insight into the subject, please do not hesitate to get in touch!
Go to the full page to view and submit the form.
Alexandra is junior content producer who enjoys writing articles and finding out more about the property market. Read more about Alexandra here.
Want to sell property portfolio in 2024? This is a massive decision that holds significant…
Getting started with Buy-to-Let (BtL) investing can be a thrilling journey towards financial growth, but…
The real estate markets of the United Kingdom and the United States are two dynamic…
Whether you own a business or private land, you will want to restrict who can…
According to the most recent annual report from student accommodation portal StuRents, the number of…
In the dynamic realm of rental properties, landlords and tenants are continually seeking innovative solutions…