It aims to offer greater financial certainty for clients
Gen H Legal, the conveyancing arm of fintech lender Gen H, has introduced a fixed fee guarantee for clients whose property transactions fall through.
Launched last month, the new option allows clients to pay an additional £175 plus VAT at the start of their transaction. If the deal fails to complete, they will not be charged any further legal fees under this guarantee. However, clients will still be responsible for any disbursement costs incurred.
Without the guarantee, clients are required to pay a cancellation fee, which is calculated as a percentage of the total legal fee based on how far the transaction has progressed.
According to Gen H, such guarantees are uncommon in the conveyancing market, where buyers and sellers are often exposed to significant financial losses if transactions fail. A recent survey has revealed a significant increase in property transactions falling through in the UK.
Gen H Legal said it introduced the option in response to customer feedback seeking greater cost certainty in the homebuying process. Gen H and Gen H Legal also offer clients bundled services, allowing homebuyers who use both the mortgage and conveyancing services to access discounted mortgage rates.
“Conveyancing is a necessary part of any property transaction, but it can be costly and feel opaque for clients; the sheer investment required can leave people on edge,” said Rebecca de Andrade, head of legal practice at Gen H Legal. “The failed transaction fixed fee guarantee is designed to ease some of these worries. We’ll always do everything we can to help our clients complete as quickly as possible – but in the event that something goes sideways, this guarantee could help.”
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