What is a Chain-Free Property?

The term ‘chain-free’ is frequently used in the property industry.

But what is a chain-free property? And are there advantages to buying and selling them?

Read on to learn more.

What is a chain-free property?

A chain-free property is a property owned by an individual or organisation that does not need the funds from a property sale to move.

Sales involving chain-free properties have a relatively low chance of collapsing.

This is primarily because the owner is not dependent on other people or circumstances. Fewer things can go wrong.

Chain-free properties are rare and sought-after

Most properties sold are not chain-free. They are part of property chains where buyers and sellers rely on other sales to complete their own.

These property sales often collapse.

So, finding a chain-free seller is valuable. Some buyers even search for chain-free houses (we have provided more information below).

What conditions create chain-free property?

Chain-free property owners have large funds at their disposal.

How they came to have these funds at their disposal varies. Below are a few examples.

Seller moved into rented accommodation

This is a common way for someone to become a chain-free seller.

It could be a temporary measure taken whilst they search for a new property with the funds from their sale.

Seller is living with family or friends

Sellers can be chain-free by living with family members.

They might do this to avoid or reduce their rent significantly in preparation for their next property purchase.

Or perhaps personal circumstances, such as break-ups or divorce, led them to it.

Seller inherited property via probate

Someone might have a chain-free property because they have inherited it via probate.

This means the property is empty, and the seller is ready to sell it whenever needed.

Seller lives abroad

Sellers living or due to move abroad are often chain-free. Unlike sellers residing in the UK, they don’t live in the property they sell.

Seller lives in a second home

The same applies to sellers moving into second homes.

Seller is selling a landlord

Sellers of buy-to-let properties usually live elsewhere.

They might be selling their property to leave the buy-to-let industry or to buy a separate property elsewhere.

How common are chain-free properties?

Figures from a recent calendar year show that one in five (21%) available properties on Rightmove are now chain-free.

Some experts argue that this shows the rise in corporate ownership of properties.

A common reason a property is chain-free is because a bank repossesses it. A company will then sell it on their behalf with no onward chain.

Second homes tend to be chain-free. The owner might sell it because maintaining a second house is no longer worth the hassle.

New build houses are often chain-free as well. Developers fund the construction of these properties up-front.

You may find chain-free properties when the owner is moving into care.

In this instance, the owner’s family may assist with the sale. If none of them want to live there, the house becomes chain-free.

Advantages of chain-free property

Less pressure

Chain-free properties are less stressful to buy and sell than ones in property chains.

Sellers have no (or less) external pressures to sell quickly. This means they feel less pressure to sell quickly.

This, in turn, gives buyers more time to organise their own property sales and finances.

Higher sale price

Chain-free properties often sell for more.

Sellers are less likely to accept lower offers.

And deals are also less likely to collapse. Many buyers will pay a premium for this.

Faster sales

Chain-free house sales tend to comple quicker.

You are not waiting for other people in the chain to sort themselves out. And there are fewer potential components that can go wrong.

Simpler sales

The deal is more straightforward, and it is easier to monitor everything that’s happening.

Disadvantages of a chain-free property

There are no significant disadvantages to selling a house with no onward chain.

However, there are drawbacks for buyers to consider. These are dependent on the circumstances around the sale.

For example, with fewer chain-free houses on the market, sellers have more negotiating power. This results in buyers sometimes being overcharged.

How to find a chain-free property

You can find a chain-free house through several different methods.

Search online

Firstly, many properties are listed on Rightmove and Zoopla as ‘no onward chain’.

This means that the house is chain-free. Users can use a search function to show only these properties.

Ask your estate agent

You can ask your estate agent to direct you towards chain-free houses. They should have a list of properties in the area that meet this criteria.

If you are interested in a new build property, then this is a great way to find a chain-free house. These deals can often be completed quickly.

Contact property developers

Major developments in your area might be well-publicised. Contact their salespeople and visit the housing estate in person to see if you’d like to live there.

Look for retirement homes

Retirement homes are often sold without a chain. If the previous owner has been moved into care, or has passed away, family members might be selling it without time constraints.