Cash buyers are becoming increasingly popular in the UK.
However, the time a chain-free cash buyer takes to complete can vary.
So, if you want clarification on the exact timeframe you can expect, keep reading.
What is a chain-free buyer?
A chain-free buyer is a potential property buyer who is not dependent on selling a current property to purchase a new one.
This means they have the financial means to purchase a property without needing to rely on the proceeds from a property sale.
As a result, their purchase is less likely to be affected by factors like a delayed sale or a buyer pulling out of a chain.
Are all cash buyers chain-free?
Most – but not all – cash buyers are chain-free.
If a buyer is truly chain-free, they are not dependent on selling one property to complete on another. But in some cases, they are dependent on this. You should clarify this detail with any cash buyer you work with.
A big factor is whether the cash buyer is a company or an individual. A genuine cash buying company is almost always chain-free. And most solo cash buyers will also clarify whether they are.
How long does a chain-free cash buyer take to complete?
The fastest cash buyers can complete within seven days.
Remember that not all cash buyers can complete this quickly. Unfortunately, many of those who make this claim are untrustworthy.
The average cash buyer can complete the transaction within a few weeks.
This speed of sale is one of their main advantages. This is the reason sellers to choose them over higher bidders on the market.
Cash buyers will still want to complete a property survey and searches.
Why can chain-free buyers complete faster?
A main cause of delays in house transactions is dealing with the mortgage lender.
You can get a ‘Mortgage in Principle‘ and then get your property valued by the lender. This ensures that they agree with the price. However, it can both a long time.
By contrast, a cash buyer’s process does not involve applying for a mortgage to complete the sale. So, there’s no need to spend weeks jumping through hoops for the lender.
How can I find chain-free buyers UK?
There are several ways to find chain-free buyers in the UK.
Firstly, your estate agent can advertise the property as for ‘Chain-Free Buyers Only’.
You can specify this in your listings on Rightmove and Zoopla. And you can mention it in any marketing material published in local magazines.
Many cash buyers are chain-free. So, contacting property companies or solo investors is an excellent idea.
You can find details of property investing businesses on Companies House. And you can also speak to the attendees at Auction Houses who are likely to be cash buyers.
First-time buyers are another common example of chain-free buyers. They are typically moving out of their parents’ house. This means they aren’t reliant on any other sales.
Asking your estate agent to market it to them is worth considering.
Should I sell to a chain-free cash buyer?
Chain-free house transactions are smoother and quicker. There are fewer ‘moving parts’ that could fall apart. This will translate into a less stressful experience for you.
Sometimes, chain-free buyers are aware of their advantageous position. They then use this as a bargaining tool to get your price down.
Only you can decide whether any price compromises are worthy of a hassle-free experience.
That said, you cannot always afford to be so picky…
In a slow market, there will be fewer buyers in the area with more negotiating power. This means that you can only sometimes be selective if you want the deal to complete quickly.
Are some chains longer than others?
Yes, some property chains are longer than others. Some chains involve only two or three people, but others may involve ten or more people.
Generally, the longer the chain is, the more likely it is to break down or cause delays.
What does no onward chain mean?
If a property has ‘no onward chain’, the seller does not rely on funds from the sale to buy a new house.
The seller already has somewhere else to live without the funds from you buying their property.
‘No onward chain’ vs ‘chain-free buyer’
No onward chain refers to a seller who is not reliant on any other transaction for their sale to go through.
Meanwhile, a chain-free buyer is someone on the other end of the transaction (i.e. a buyer). They already have the money to buy a property without relying on lenders, chains, etc.
First-time buyers are one of the most common examples of a ‘chain-free buyer’.
Similarly, chain-free properties are properties owned by people or organisations that are not reliant on funds from other sales.
Common examples where there is ‘no onward chain’
There are many reasons why a property may need an onward chain.
Inherited property
Inherited property often comes with no onward chain. This is because the person who inherited the house does not live there.
Usually, they will sell their house to release equity. The proceeds won’t go towards buying another house.
Property investment
Property investors often have no onward chain. This is because they usually have money in circulation, because of past investments. So, they are not dependent on the sale of their existing house to buy a new one.
Timing is essential for professional property investors. So, they will rarely rush into buying a new house straight away.
Repossessed property
Repossessed property sales almost always come with no onward chain.
Lenders usually spend the cash these sales to clear loan debt and other liabilities.
The mortgage lender that has possessed it must sell it on the open market. So repossessed property sales are an excellent way of guaranteeing no onward chain.
Seller who is moving abroad
Some sellers have no onward chain because they are relocating for work abroad.
Their employer may have already organised accommodation for them or they may plan to find it themselves later.
Either way, this puts them outside of a property chain.
How can I become a chain-free seller?
It is difficult to become a chain-free seller, but not impossible. You will need to find another place to live for a short period while the house sale is going on.
You might have to ask a friend or family member to stay with you for a while. Or you could temporarily move into rented accommodation.
How can I become a chain-free buyer?
If you will be living with family or friends for the foreseeable future, you are typically a chain-free buyer.
You could also put an offer on a house whilst renting and without handing in your notice .
However, this will require funds to continue renting for the overlap period.
Is completion the same as having an offer accepted?
No. Verbal acceptance from a seller is not legally binding. Sellers can still pull out at this point (this often happens when ‘gazumping’ offers are involved).
Completion requires the ‘Exchange of Contracts’. After this, pulling out of a house sale will have consequences for the seller.
Sell your house fast with We Buy Any Home
We Buy Any Home are genuine chain-free cash house buyers. We can purchase your property up-front and quickly, without hassle or stress.
Fill in our enquiry form below if you want a cash offer for your house.
