Nobody wants to be part of a property chain collapse. You’ve found the house of your dreams, packed all your boxes and booked a removal van — then someone in the chain drops out. It is stressful, it can feel frustrating and it seems like overnight your plans have been shattered. So what happens really, and how do you stop it?
Why Do Chains Collapse?
There are many reasons why property chains break down. This potential (or probable) stress and worst-case scenario can happen: the buyer’s mortgage could fall through, a survey might reveal problematic issues or someone just gets cold feet. Occasionally, a seller’s purchase onward will fail and the chain unravels. The longer the chain, and thus more complex, it is more susceptible to failure. For advice from Conveyancing Solicitors Gloucester, contact https://deeandgriffin.co.uk/personal-legal-services/conveyancing/gloucester/
Immediate Consequences
If a chain goes down, all transactions in that chain are suspended or reversed. If you are in the middle of such a chain, then it is possible that both your purchase and your sale will be lost. Those exchanged before the collapse are legally binding, but most chains fall pre-exchange (because of no one being committed yet).
Financial Impact
If contracts haven’t been exchanged, you cannot lose your deposit but are certainly going to be out of pocket. If the sale is now called off, you could be out thousands of pounds in survey fees, mortgage arrangement fees and solicitor costs, as well as search expenses – none of which are refundable. Also, if you’ve given notice on a rental property or booked movers – those are costs you have wasted as well.
What Are Your Options?
Remember, the first thing is to keep calm and speak with your solicitor / estate agent at the earliest opportunity. Sometimes chains can be salvaged.
Another option is to find a brand-new property and begin all the way from scratch – but again, more time that goes by equals more stress and extra costs too. This allows buyers that are currently renting to remain in their rental temporarily, giving them more breathing room and reducing stress.
How to Protect Yourself
One way or the other, there is little that can be done. Deal with solicitors who know what they are doing and estate agents that respond well to communications. Buyers – look at chain-free sellers / smaller chains.
Finally, being a cash buyer or selling to one massively reduces risk and so too does avoiding long complex chains when you can help it.
Having a property chain fall through is so frustrating, but it’s not the end of everything. And you can move on and find your way forward with some space from the setback, a little help to lighten things up and make it clear again.
