Understanding Onward Chains in Property Transactions

If you’ve been searching for a property, you’ve probably come across listings that highlight “no onward chain.” But what exactly does this mean, and why might it be beneficial to buy a property without one?

What is an Onward Chain?

An onward chain occurs when a seller needs to sell their current property to finance the purchase of their next home.

Many sellers find themselves in this situation, leading to a sequence of dependent transactions. Essentially, one sale must be completed before the next purchase can go through.

For example:

• Person A needs to sell Property A to buy Property B.
• Person B must sell Property B to afford Property C.
• This pattern continues, creating a property chain.

If everything progresses smoothly, the impact on buyers is minimal. However, purchasing a property with no onward chain does come with distinct advantages.

Why is a No Onward Chain Property Preferable?

The primary downside of buying a property with an onward chain is the potential for delays and complications. The longer the chain, the greater the risk of setbacks.

Any issue within the chain—such as paperwork delays, mortgage rejections, or a sale falling through—can disrupt multiple transactions. In worst-case scenarios, a broken chain means all dependent sales may collapse, forcing buyers and sellers to start over.

Can You Avoid a Property Chain Breaking?

Unfortunately, you have little control over whether a chain breaks, as it depends on other parties. That said, most property chains proceed without major issues, with around two-thirds completing successfully.

To minimize risks, ensure you are proactive and organized with your sale and purchase, keeping everything on track from your side.

First-time buyers are in a strong position, as they don’t need to sell a property before purchasing. If you want to avoid chain-related uncertainties, prioritize homes listed as “no onward chain.”

If you have any questions about property chains, reach out to your local branch to speak with an expert.

Planning to Sell Before Buying?

If you need to sell your current property before purchasing your next home, start with a free property valuation. Get expert advice with no obligation to sell.