What is No Onward Chain Meaning?
Firstly, you need to know what is a chain when buying a house? A chain is a series of interconnected house purchases that depend on each other to achieve successful results. Your chain includes the people you sell and the people you buy. Therefore, if you are a chain-free buyer, you are in a good position because your purchase does not depend on where you sell your position first.
If you hear the term “no forward chain”, it is essentially another term for “chain free”, also known as “no upward chain”. This means that the person selling the property does not need to raise funds from the sale to move; therefore, there is no forward chain. As with “chain-free” properties, the same rules apply: for example, the seller may have purchased a new house, or they may be moving abroad, or the house may be repossessed. No matter what your real estate agent calls, buying a home with no onward chain is an attractive proposal because it is more likely to be a fast, stress-free transaction.
For home buyers, “no onward chain” is one of the sweetest words in English. If you see a property marked with no onward chain advertisement, it means that the seller can sell the current property without buying a new property. If you are a buyer, this is good news because you will not be grateful for the seller to successfully complete their next property, which means that the transaction is less likely to fail. Given that the move may take several months, any move to speed up the process is undoubtedly a good thing.
Why property may be no onward chain?
It is always worth knowing what the seller is doing so that you can make an informed decision as a buyer.
* The seller has bought a new house.
* This is an inheritance or a second home.
* This is a newly built property.
* The property was recovered or sold by the company.
* The seller is moving to a rented residence.
* The seller moves abroad.
* The seller is moving into a retirement home.
How quickly can you buy a house with no onward chain?
In theory, no onward chain homes are attractive to buyers, because usually, sales will proceed faster. If your mortgage is approved, you may be able to purchase an chain-free property in as little as 10 weeks from when your offer is received to when it is completed. Compare this to transactions in the chain, which can take months to obtain the key.
However, although no onward chain buyers are usually in a better position, this does not necessarily mean that your sales will go smoothly. Anything can stop a transaction: investigations can highlight defects, behavior can cause problems, and buyers can change their minds.
In reality, you can have a chain that is procrastinating forever for free sales, or a chain that sounds terrible, and everything is going well.
Before the transfer of funds is completed, everything can work. Therefore, although no onward chain buying is best according to the law of averages, it is not always that simple.
If time is tight, you can read our guide on how to sell quickly. However, although a quick move is better than a long-term delay, the most important thing is that you buy the right property according to your needs.
Broken no onward chain
It is worth remembering that even if there is no onward chain, sales may still be interrupted and it is not 100% safe.
Some of the reasons why these transactions may crash include:
* The buyer or seller delayed in providing information to the real estate agent. This will eventually frustrate either or both parties, and things will fall apart;
* The detailed information in the sales memorandum indicates that one or more of the previous sales cannot be made;
* Due to financial problems, the buyer’s mortgage loan offer was rejected;
* Transporters are making slow progress, leading to delays, and ultimately leading to the collapse of one or more sales;
* Slow interaction between the real estate agent and the buyer or seller’s transferee, again causing obstacles/delays;
* Once the mortgage (homebuyers)/structure survey is completed, actual problems will become apparent. This will either completely stop the sale or cause delays related to the negotiation, which will eventually lead to the end of the sale;
* Independent buyers “mark up” the sale-that is, provide higher value than existing buyers. This in turn caused sellers to withdraw and the entire chain collapsed;
* The independent buyer observes the sale-that is, decides to lower the price (usually at the last minute). The seller then pulled it out, and the whole chain broke again;
* One of the buyer or seller changes his mind and decides not to proceed;
* A buyer in the chain has problems collecting deposit funds in a timely manner;
* Buyers participating in the chain have questions about the final mortgage offer. Even if these problems can be solved, unexpected delays can lead to misplaced sales…
What types of sellers are classified as “no onward chain”?
There are many reasons why vendors do not rely on selling their home to move into another home. They may already have a property to move in, or they may decide to rent when looking for their next home. Other reasons include moving to work or moving to another country. For whatever reason, buying from no onward chain suppliers can make the sales process more straightforward.
Will all chain-free house purchases have no onward chain?
In an ideal world, you would buy a chain free from someone who also sold it for free. However, it does not always operate in a way that everyone does not have a chain. You might buy a family chain for free, but vendors rely on selling their homes to buy new ones.
This situation means that a chain will be involved, even if you do not rely on it to sell your home. Therefore, from a sales perspective, you can buy a chain free, but still have a onward chain store with your supplier. For a completely chain free purchase or sale, no one involved (whether buying or selling) should rely on the sale of their house to fund the move.
Can you buy a no onward chain house with a mortgage?
Buying a house as a cash buyer will put you in a good position and you will be attractive to suppliers. However, even if you need a mortgage, you can still buy real estate with a no onward chain.
As long as the seller does not rely on sales to purchase their next step, even if you need a mortgage, the purchase will be classified as “no onward chain”. Of course, it is best to be a cash buyer; this means you may get a discount because the supplier knows that you don’t need to go through the borrowing process.
Life is too short to wait for others. Of course, no one has said that moving is quick and easy, but as long as you play your cards, you have a chance to break the chain.
Originally published at https://www.tlw.com.