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Selling/buying chain free vs in a chain
freeman3030
Posts: 211 Forumite
Hi all,
I'm just after some points of view with regards to selling/buying chain free vs being part of a chain.
For some background:
Currently own house and will be 3yrs 6mths into our 5 year fixed mortgage deal when we sell next year. Our year 3 mortgage statement said that the ERC would be just over £2k.
The main aim is to move closer to work (Brighton) as we currently live in Eastbourne. I'm really reluctant to buy/sell at the same time as last time as last time we really felt the pressure to find our current home as our buyer really wanted to get into our house. I really want to minimise the stress as much as possible, so I thought that offering the house chain free would be one less large hurdle as we won't be looking to buy and trying to sell and get everything to sync. My parents are happy for us to move back temporarily and we can store our belongings in my nans spare bedrooms as she said doesn't need the space and is happy to help (I'm so fortunate to have a helpful family) as well as selling some bits we no longer need/want.
I'm just wondering what the pitfalls would be other than having to pay the early repayment charge?
The only area of concern (and I'm not sure if it is something to worry about or not) would be that we would need to change all of our addresses on our accounts and when we apply for a new mortgage we may have only been living with my parents for a month or two and whether banks will have an issue with this?
I'm just after some points of view with regards to selling/buying chain free vs being part of a chain.
For some background:
Currently own house and will be 3yrs 6mths into our 5 year fixed mortgage deal when we sell next year. Our year 3 mortgage statement said that the ERC would be just over £2k.
The main aim is to move closer to work (Brighton) as we currently live in Eastbourne. I'm really reluctant to buy/sell at the same time as last time as last time we really felt the pressure to find our current home as our buyer really wanted to get into our house. I really want to minimise the stress as much as possible, so I thought that offering the house chain free would be one less large hurdle as we won't be looking to buy and trying to sell and get everything to sync. My parents are happy for us to move back temporarily and we can store our belongings in my nans spare bedrooms as she said doesn't need the space and is happy to help (I'm so fortunate to have a helpful family) as well as selling some bits we no longer need/want.
I'm just wondering what the pitfalls would be other than having to pay the early repayment charge?
The only area of concern (and I'm not sure if it is something to worry about or not) would be that we would need to change all of our addresses on our accounts and when we apply for a new mortgage we may have only been living with my parents for a month or two and whether banks will have an issue with this?
0
Comments
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I think you are overly optimistic about how long you'll be with your parents "only a month or two". In this climate it could be much longer.
However, as long as thats not an issue then I think this is a very good idea, more so than usual. Don't though overestimate how much this will simplify the process, odds are high you'll be in a chain anyway, just a shorter one, but it will give you a potentially big advantage with some sellers, you might be able to get a better price, and you might get lucky and find a probate sale or someone else moving into rented and no chain. You'll also be less susceptible to pressure to reduce the price of your house when you sell as you won't be jeopardising your purchase. That alone could save you the ERC equivalent.
I'd definitely do it in your case, as long as being with parents for a considerable time isn't an issue.0
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