When purchasing a new home, unless you are a first-time buyer, being in a chain is very common. However, despite the worry many potential purchasers may have of the chain collapsing, if you are looking at buying a new build home, there are different ways homebuilders can help to make sure your move happens.
What is a chainbreaker?
Firstly, let’s start with the basics. A chain is a series of linked house purchases which are mutually dependent for a successful outcome. Your chain consists of the person you’re selling a home to, and the person you’re buying from. Often, chains can be stressful if issues occur at the last minute, which will affect your own sale.
A chainbreaker is where a homebuilder can offer to buy a home when there is a broken link in the chain for a mutually agreeable price. This is subject to a total of three valuations.
Some developers offer this at the very beginning of the housebuying process if the buyer is part of a long chain and wants to avoid the risk of the chain collapsing.
If a chain collapses, it means there is a possibility that your sale may fall through, which is the last thing a buyer wants at this stage of the homebuying journey.
What criteria needs to be met?
A chainbreaker can be similar to Part Exchange, especially in terms of the criteria that has to be met. The purchaser at the top of the chain has to be buying a new build home and the chain break property has to be valued at less than the new property, as the housebuilder will be looking to sell this property on.
How does it work?
The process is simple; the chainbreak property should be valued by three independent agents. Usually there is one nominated by the homebuilder, one by the property owner, and an agreed third party. Ideally, this value will allow the home to be sold within 6 to 12 weeks - the optimum time for buyers to move into a new build home.
What are the advantages?
There are many advantages for sellers. Similarly to our Part Exchange service, we’ll cover agent fees, Home Report fees, and survey costs. This saves you time, as no chain means less of a delay. Legal completion dates should also be the same, so there is no need for bridging loans or accommodation.
You also have no obligation - you can simply request a free valuation to see if the chainbreaker will work for you. This option gives you more control of the process, rather than being stuck in an unreliable chain which could potentially collapse.
Felicity Barnett, Lending Operations Manager, Mortgage Advice Bureau:
"When it comes to keeping your homebuying chain moving, there are so many factors that lie outside of your control. Even the most organised individuals can only do so much to maintain momentum, so it’s important to explore all the options available to you.
“A chain breaker is ideal for those in a particularly long, complex chain, as it can provide you with peace of mind that your sale won’t fall through. However, do bear in mind that you need to meet certain criteria to be eligible for this scheme. “Whatever stage of the homebuying journey you’re at, using the expertise of a mortgage broker is invaluable in helping you to navigate its varying complexities. They can assess your financial situation, explain the ins and outs of moving schemes, and find the most suitable deal tailored to your individual needs.”
What other options are available?
If this isn’t the solution for you, we have other options which might work better to make your dream move a reality.
Our Part Exchange Service is popular with upsizers. It means we can buy your current home, removing the stress and hassle of selling without frustrating chains or agent fees.
If you’re interested in a Cala home but your own home isn’t under offer, or even on the market yet, then our Assisted Move Service can help. It’s where you don’t need to wait for an offer before reserving your dream home.
Meanwhile, Cala’s Guaranteed Buyer Service gives you the opportunity to achieve an open market price on your existing property, with a backup offer from us just in case you need it.
Simply reach out to our sales consultants at your desired Cala development for more information. You can also find out more on each of our handy purchase schemes here.
