What does no onward chain mean?
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Explaining what no onward chain means, whether it's a good thing, and what to do if your no onward chain sale collapses…
When selling a house, the fewer people involved in the process, the less room for things to go wrong and the faster a purchase can move along. In an ideal world, you want the shortest property chain possible.
So, does this mean no onward chain is an ideal position to be in? Will it mean you can get a faster property sale? What does no onward chain actually mean?
We’re going to answer these questions for you, as well as examples of a no onward chain property, whether or not these sales collapse and how to get a fast sale for your no onward chain property.
What does no onward chain mean?
No onward chain, also known as no forward chain or no upward chain, is a property that is ready to be sold instantly, and the vendor doesn’t require the funds to move into their new house, they’re happy to move into rented accommodation, or they’re not looking to purchase another property straight away.
With most sales, the sellers are relying on each other for their sale to complete, but with a no onward chain property, the seller of that property is no longer relying on the sale of their house to be able to move on.
For example, a new build house would be considered a no onward chain property, as there are no occupants to move out and it’s the builder who’s selling the property.
As a seller, it will be of an advantage to you selling your house to a buyer who’s got no onward chain, as they’re readily available to buy your house ASAP, without the need to sell theirs. Ideally, you’re looking for a cash buyer.
Is no onward chain a good thing?
Whether no onward chain is good or not may be a lot down to opinion, but as a general statement, it can be seen as a good thing. No onward chain will mean the moving/selling house process is simplified, which should make the process run a lot smoother.
If you find yourself a buyer with no onward chain, or in other words a cash buyer/someone who doesn’t need to sell to buy your house, this will be beneficial for you, especially in getting you a fast sale.
Selling to someone with no onward chain also reduces the chance that the sale will fall through, which is also another huge positive.
Examples of no onward chain property
Now that you understand what “no onward chain” means — essentially a property being sold without the seller needing to buy another home simultaneously — let’s explore some examples of situations where this applies and the types of properties that fall into this category:
Tenanted property
Selling a property with tenants does have its difficulties, but most sellers tend to be looking to get their value out of the house and aren’t generally looking to buy another property, meaning there’s no onward chain.
New build property
New build properties won’t have any occupants and are bought off the developer, meaning there’s no onward chain, as the builder is looking to get money from the property and isn’t looking to use it for another sale.
Inherited property
Property that has been inherited, whether it’s going through probate or not, tends to be a property that people are looking to sell on, with no intention of living in it. This will mean an inherited property has no onward chain, as the money from the sale isn’t going towards another purchase.
Repossessed property
Once a mortgage lender has taken back possession of the property, then they will be obliged to sell the property. As a result of selling, the money made will go towards paying off the debt, rather than towards buying another property.
Property investor’s property
Property investors will generally have a big portfolio and so when they’re looking to sell one property, they’re not often looking to buy another new property straight away, meaning there’s no onward chain.
Those with a ‘Plan B’
Some sellers are happy to sell their house and move into rented accommodation before looking for a new property and eventually using the funds. This will mean there’s no onward chain, as they’re not looking to instantly buy a new property.
Can no onward chain sales collapse?
While no onward chain sales are generally less likely to collapse compared to chain linked sales, they’re not completely immune to problems. A chain break can still happen for a variety of reasons. Let’s jump into some of the common reasons why a no onward chain sale might fall through:
Financial issues
If the buyer’s mortgage application is rejected by the mortgage lender, they may be unable to proceed with the purchase.
The buyer might fail to provide the deposit funds on time, causing delays or the sale to collapse.
Communication and process delays
When the buyer or seller delays responding to queries from the estate agent or conveyancer, it can frustrate the other party and jeopardise the sale.
Solicitors taking longer than expected to process documents can cause lengthy delays, testing the patience of everyone involved.
Legal and search issues
If property searches uncover issues — like planning restrictions or structural problems — the buyer may decide not to proceed.
Details in the Memorandum of sale could reveal that one or more conditions of the sale can’t be fulfilled, stopping the transaction.
Buyer or seller decisions
Either the buyer or seller could simply change their mind and decide to back out of the deal.
The seller may get gazumped, where they get a competing offer at a higher price, prompting them to pull out of the sale.
The buyer could gazunder the seller, dropping their offer at the last minute, causing the seller to withdraw from the sale.
Does no onward chain property sell quicker?
No onward chain sales are often seen as smoother and less complicated than property chain sales. However, selling a no onward chain property doesn’t automatically guarantee a faster sale, especially if they’re relying on the open market.
That said, while a speedy sale on the open market isn’t a sure thing, there are alternative methods that can help you sell your no onward chain property more quickly:
Selling at auction
Selling at auction is a popular option for a quick sale. Auctions attract serious buyers who are ready to commit by putting down a deposit and exchanging contracts the moment the hammer falls. Usually, buyers are given 20 to 28 days to complete the purchase making it one of the fastest routes to sell your home.
Here are some of the downsides to consider:
Although uncommon, buyers can still pull out, leaving you back at square one.
Auction sales come with very high expenses, including legal fees, marketing costs, room hire fees, and the auctioneer’s commission, which eats into your profits.
You may need to hold multiple open days to attract bidders, adding to the time and effort involved.
Part exchange
A part exchange scheme allows you to trade your current home as part payment for a new build home. This eliminates the need for a buyer, making it a quick and convenient option if you’re buying a new property.
However, part exchange isn’t suitable for everyone:
Limited to new builds: This option only works if you’re looking to buy a new build home.
Not ideal for non-movers: If you’re not planning to buy a new property right away, part exchange won’t be the right solution.
Selling to a cash buyer
Selling to a cash buyer is often the fastest and simplest way to sell a no onward chain property. Cash buyers are chain-free, which means the process is much smoother and quicker. Why is selling to a cash buyer so fast?
Cash buyers don’t need to arrange a mortgage, eliminating lengthy approval processes.
The absence of a chain and mortgage reduces the amount of paperwork involved, allowing exchange and completion to happen on your schedule.
Why choose The Property Buying Company?
We specialise in fast, hassle-free property sales. As cash buyers, we buy any property in any condition or location, making us the perfect option for no onward chain properties. We can complete your house sale on a timescale that works for you.
We cover all costs, including legal fees, so you keep our cash offer in full. No chains, no delays – just a straightforward house sale. Want to know how much you could get for your property? Fill in our online form or give us a call for a no-obligation cash offer and make your onward chain property sale fast and stress free.
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