Buying in a chain

MayBea

Can anyone give advice on a entering a house buying chain?

Being a first time buyers, we have no previous experience of the legality and steps to purchasing a house in a chain. The owners are looking to upsize the existing property and plan to sell it first (which is understandable). But the EA said they are not vacating the house until they find a suitable (bigger) property in the area - all this sounds somewhat daunting.

Would that be something to avoid?

Zzippy

I'd avoid it. Picture the scenario where you sign contracts, but they insert a clause that closing date is at their discretion (when they find a suitable property). That could take months or longer. In the meantime you're still paying rent somewhere, you're down your deposit, and your mortgage offer may well run out and you have to reapply. They have the security of knowing they have a buyer so no rush on them to move. They have your deposit - if you walk away or your bank doesn't extend the loan offer, they keep the 10% deposit. There's no urgent reason for them to find a place and you're left in limbo...

MayBea

Many thanks for the detailed advice, I didn't realise they can keep the deposit if we are to pull out.. I cancelled the second viewing as we won't be buying this house.

MarkAnthony

Your status as an FTB and no chain is a great bargaining chip. Don't squander it when making offers. You might not be the highest bidder but the fact that you're not in a chain in very attractive.

MarkAnthony

MayBea wrote: »

Many thanks for the detailed advice, I didn't realise they can keep the deposit if we are to pull out.. I cancelled the second viewing as we won't be buying this house.

You would, of course, contract around that with your solicitor. No sign of movement from the current owners = avoid though IMHO.

Buona Fortuna

Hi OP,

I recognise the "daunting prospect" from when we did it many moons ago.

MarkAnthony makes a very valid point - so much so that I felt it worth repeating;).

Also do bear in mind that 9 times out of 10 you are going to be in some sort of chain. The people you are buying from will be buying somewhere else to live, unless you're buying new from a developer, or a former investment property. I wouldn't rule it out just go in with your eyes open.

Good Luck.

MayBea

MarkAnthony wrote: »

You would, of course, contract around that with your solicitor. No sign of movement from the current owners = avoid though IMHO.

Thanks. I think we can just end up wasting time (and money) if we are to pursue this house (even though I quite like it ..)

MayBea

Buona Fortuna wrote: »

Hi OP,

I recognise the "daunting prospect" from when we did it many moons ago.

MarkAnthony makes a very valid point - so much so that I felt it worth repeating;).

Also do bear in mind that 9 times out of 10 you are going to be in some sort of chain. The people you are buying from will be buying somewhere else to live, unless you're buying new from a developer, or a former investment property. I wouldn't rule it out just go in with your eyes open.

Good Luck.

Thanks Buona Fortuna! I don't mind the chain, but my understanding of this situation was that owners move to rented accommodation once the deal is closed. I wasn't aware of the scenario where owners continue living the property even after the sale...

Buona Fortuna

MayBea wrote: »

Thanks Buona Fortuna! I don't mind the chain, but my understanding of this situation was that owners move to rented accommodation once the deal is closed. I wasn't aware of the scenario where owners continue living the property even after the sale...

Agree that's very unusual

Best of luck - its a stressful time.