If a property has “no onward chain”, this means that the property isn’t linked to any other properties. As it isn’t part of a property chain it can be sold quickly. This is because the buyer and seller aren’t relying on other people in a chain or for other properties to sell first.
No onward chains are favourable among both buyers and sellers. This is because the conveyancing and house-selling process is more straightforward. There are also fewer risks of delays for the house sale falling through.
These are common if a first-time buyer is purchasing a property. This is because they usually don’t have a house to sell. Unless the seller is purchasing a new home, the property will be chain-free.
In this article, we will discuss everything you need to know about no onward chains, from its benefits to how long it will take.
What's the Difference Between Chain vs No Chain?
The process of purchasing and selling properties is the same whether they are part of a chain or not.
However, the process is significantly shorter when a no chain property is involved. This is because there are only two parties involved in the process.
Here are the key differences to consider:
Chain
A property chain can involve many properties, buyers and sellers. They are common in the UK as most people are selling a home to purchase a new one. While a chain can have as little as 3 people involved, the majority of chains are longer than this. In some instances, a property chain could contain more than 10 people.
As chain properties involve many sales, the likelihood of one of these sales falling through is higher than a property with no chain. Quick Move Now has estimated that 35% (a third) of property sales fall through. No chain properties aren’t at risk of falling through as a result of a break in the property chain.
Selling a property in a chain is more prone to delays due to the number of people involved. While chains are less favoured compared to no chains, they are more common in the UK property market. This is because most sellers are looking to purchase another home while selling their own.
No Chain
Chain-free properties aren’t linked to other properties. As a result, they aren’t affected by anyone other than the buyer and the seller. While it is still possible for the buyer or seller involved to pull out of the sale or for there to be delays, this isn’t as likely compared to property chains.
No chain properties are more straightforward than long property chains and conveyancers can work quickly. When it comes to completion day, the buyer and seller will only need to rely on each other. This significantly reduces the time it will take for the ownership to be passed on.
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Examples of No Onward Chains
While no onward chains are less common, there are many reasons why they may occur. This includes:
New Build Properties
If a seller is purchasing a new build home there will be no onward chain as they will be the first people to live in the property. While they are buying a chain-free home, delays with the property being built can occur.
Cash Buyers
Cash buyers can still be part of a chain if they sell a home and purchase another one. However, most cash buyers are chain-free. Even if they aren’t chain-free, as they aren’t relying on a mortgage lender, their conveyancing process is more straightforward. A cash buyer who is chain-free is one of the more favoured buyers.
Seller Already Has a New Home
In some instances, a seller will have already purchased a new home in which the sale has already been completed. This is quite common for those who are looking to move abroad. If a seller is moving into retirement accommodation they will be a chain-free buyer.
Selling a Second Home
A second home isn’t a permanent residence. If a person is selling this home then it will typically be chain free. They won’t necessarily need to purchase another home at the time of the property being sold.
Inherited Properties
Inherited properties are commonly homes with no onward chain. When inheriting a house from your parents during the probate process, it’s likely that they already have a home of their own. In many cases, a family home is sold for the inheritance to be distributed amongst family members.
Read more on what is probate
First Time Buyers
First-time buyers will always be chain-free as they aren’t selling another property and will start the property chain. Granted that the seller isn’t buying another property, the seller will avoid any chains.
Houses Sold at Auction
Almost houses sold at auction are chain-free. The process between the buyer and seller is a fairly straightforward one. You can buy a house at auction with a mortgage or without depending on your financial situation. Auction house purchases without a mortgage will typically complete quicker as there is less chance of delays.
Read more on Auction Conveyancing Solicitors
Repossessed Houses
A repossessed house is a house where the ownership has been taken back by the mortgage lender. This occurs when the property owner is unable to keep up with their mortgage repayments. In these instances the home will be sold by the lender, this often occurs at auction.
Properties Sold By a Company
If a property is sold by a company these properties won’t be part of a chain as there is no onward property that will be purchased. This would be a no-chain property if the buyer is not part of a property chain.
Rental Accommodation
Another common reason for no onward chains is if a seller isn’t purchasing another home and is moving into rented accommodation. A seller will have to align moving into the rental property with the sale of their house.
While this can potentially cause delays, this is less likely than another sale in the property chain falling through. A buyer can also be the start of the property chain if they are moving from a rented home into a purchased one.
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What are the Benefits of Having No Onward Chain?
There are many benefits of having a no onward chain. These include:
Fewer chances of delays with the conveyancing process and the completion date
The property sale is less likely to fall through
The process is quicker as there are fewer people involved
Less chance of price negotiations - the seller can afford to wait for the best offer instead of having to accept a lower offer
There is more flexibility in the sale and completion dates
Lower risk as there will be no chain-related issues
No risk of a property chain collapsing
How Quickly Can You Buy a House With No Chain?
On average, it can take just 4 weeks to buy a house with no chain. This is based on no issues occurring and the process is straightforward. The exact time scale will vary depending on the conveyancing process and whether there are any issues or delays.
In contrast to this, buying a property involved in a chain can take 6 months or more to complete. This is a significant difference. Even if there are some delays with the house-buying process of a no-chain home, it is still a faster sale.
The conveyancing process can be completed quickly. Buyers and sellers don’t have to rely on anyone else like with a property chain which significantly helps to cut down the selling time.
Read more on How Long to Sell a House with No Chain?
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Hiring a Conveyancer
If you’re looking to purchase a property, it’s important to enlist the help of a conveyancing solicitor. It’s recommended to use a conveyancer because they are experienced in handling the legal aspects of a house sale and purchase.
Here at Compare My Move, we can connect you with up to 6 local and trusted conveyancers. To save on your conveyancing fees and compare quotes simply fill out our online form.
All of our conveyancers are regulated by either SRA, CLC, LSS, LSNI or CILEx. As a result, you know they will provide you with the best possible service.
