[HPFGU-OTChatter] Re: England Real Estate - Just for Fun

[Kathryn Cawte]

drpam asked about chains and Eloise explained :

In England and Wales (not Scotland) a firm contract to buy/sell isn't
made immediately. Sales are made 'subject to contract' and what often
happens is that chains build up: I put in an offer to buy your house,
but that depends on my ability to sell my house, which depends on my
prospective buyer selling his house, etc.

Same the other way. I'm ready to move into the house you're selling
me, having a buyer ready to move into my property, but the house
*you* are wanting to buy isn't available as perhaps your vendor or
someone further forward in the chain hasn't found a property to move
into yet.



K

drpam also asked about the effects on housing sales of chains - well that
depends. If everything goes to plan it has no effect at all but if someone
at some stage in the chain has trouble swinging a mortgage (not surprising
when house prices are rising to the extent that many first time buyers need
a 100% mortgage) or worse someone gets gazumped (i.e. some other rotter
offers the person you were planning on buying your house from a little more
money and you suddenly find yourself with nowhere to move into) then things
can get very very fraught and if you're really unlucky the sales can
collapse along the whole chain and everyone finds themselves back at square
one.


K