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Chain Break Case Study

Chain Break for Family Home

How the Patels saved their dream home when their buyer pulled out

Sevenoaks, Kent
Detached Family Home
£425,000
Loan Amount
68%
LTV
0.55%
Monthly Rate
3 mo
Term

The Challenge

The Patel family had found their dream family home and had a buyer for their current property. Two weeks before exchange, their buyer pulled out, putting the entire chain at risk.

The Solution

A chain break bridging loan secured against their existing home allowed them to proceed with the purchase. They had 12 months to sell their original property at the right price.

Timeline

Day 1
Buyer withdrew from purchase of existing home
Day 2
Applied for chain break bridging finance
Day 7
Bridging offer issued
Day 14
Legal work completed on bridging
Day 21
Completed on new home purchase
Day 75
Original home sold at full asking price
Day 90
Bridging loan repaid in full

Cost Breakdown

Interest (0.55% x 3 months) £7,013
Arrangement Fee (2%) £8,500
Valuation Fee £950
Legal Fees £3,200
Total Finance Costs £19,663

The Outcome

The Patels moved into their new home and sold their original property 10 weeks later for £635,000 - £10,000 above asking. They avoided losing their dream home and the costs of a failed chain.

"We thought we'd lost everything when our buyer pulled out. The bridging loan gave us breathing room to sell properly, not panic."
— Raj Patel, Homeowner
Important: This is an illustrative case study based on typical scenarios. Names, locations and some details have been changed. Actual rates, fees and outcomes depend on individual circumstances and lender criteria. This is not a guarantee of similar results.

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