Buying a house

[xstitcher]

I've tried this in the topic home and garden and seem to be getting nowhere.

My question is that I don't understand WHY you have to have these house chains that seem to give so many problems. Is it an old tradition or a smart way for estate agents to make money? Please enlighten me.

[bednobs]

how rude! I answered you and so did factor!

[NOX]

Listen- I assume you're American so I'll go very simply with this-
1. You have difficulties financing two properties at once here unless you get a bridging loan which is expensive.
2. People appreciate being able to live somewhere.
3. If the chain breaks down it means that everyone in that chain can get ' stuck ' until a replacement is found for them.
4. Thank the two people who already said all of the above.

[bednobs]

ps the estate agents make no money at all if the chain breaks down. Where are you from? How do people who (for example) want to move to a bigger house do it where you are?

[xstitcher]

Sorry I certainly didn't mean to be rude at all. I was just taking my time to see if I could rephrase my question and I am not an American. It's just that I see all through Europe the other system being used with out causing problems and seeing my friend so unhappy yesterday made me wonder why this system is used in the UK. I am not critizing the system just asking why and that is why I asked if it were a tradition. It might also have something to do with statics and the size of the population and things like that ...... I just don't know.
Anyhow thanks to all for trying to get it through my thick head.

[xstitcher]

Here in Denmark you borrow money from a credit bank for a down payment and then get a morgage (spelling?) I have never heard of it not working out. Of course some people are living beyond their means can't keep up the payments but I expect that is a universal problem.

[VHG]

Person A is a first time buyer. They want to buy person Bs house.

Person B wants to buy Persons Cs house, and person C wants to buy person Ds house.

Person B cant buy Cs house until they have sold theirs (and got the money off person A)

Person C cant buy Ds house till they have sold theirs and got the money off person B.

This can only happen all on the same day, and hence is a chain.

A way to avoid this is get a bridging loan so you can buy a house before you sell yours, but these a VERY expensive so people try to avoid getting them.

[factor-fiction]

^"Here in Denmark you borrow money from a credit bank for a down payment and then get a morgage (spelling?) I have never heard of it not working out. "
Yes it works that way too here if you are a first time buyer and you buy a house from someone who has died or can move out immediately. But that covers onlya fraction of house transactions. In Denmark how does it work if you already have a house and want to buy from someone else who also needs to find somewhere else to live before they can move out?

[xstitcher]

Aha.......now I think I am beginning to get the picture. You can do it without the chain but the cheapest way which of course most will use is the change.

Thank you all for taking your time and patience with me....some more than others I might add.

Now I can explain it to my lunch guest for once and for all.

[jackthehat]

Using a 'bridging loan' is often prohibitively expensive and is a risky strategy as there is *no* guarantee of either your purchase, or sale, proceeding to completion......few people view using one as any sort of sensible option when it comes to house purchases.

[xstitcher]

Sorry factor I haven't had time to answer your question. What happens here is you sell your house first, but usually you have about 3 to 6 months before you move. That is something between you and the buyer. After your house is sold you find and buy your new house. My house is sold and the papers are signed sealed etc. but I don't start to pay for my new house before the day I move in.

[boxtops]

Here's the other thread http://www.theanswerb.../Question1045461.html

[jno]

you're right, it shouldn't be thi scomplicated and stressful; my sister, who doesn't live in the UK, has just sold her house and bought another with very little trouble. As for the half-hearted offer-and-acceptance system, which encourages gazumping, I believe even Scotland doesn't do that, but England does.

There are better ways, as you suggest.

[xstitcher]

Bless you juo for understanding what I was asking and not telling me I was rude or other things. All I wanted to know was way. I don't know if our ways are better.
I really like the AB and will keep on using it for things that I don't understand. Now good night to all and thanks for a good day here.