Conveyancing costs which until now used to bother many people in the UK will be reduced to help homeowners and buyers according to the Tesco Law passed by the Lord Chancellor. This law will make it easy to obtain legal services at an affordable rate. Some of the reputed law firms based in the United Kingdom have already put the law into effect and are offering their conveyancing services at a fixed price of £750 which includes VAT irrespective of the price of the concerned property. This news has come like a relief to the home buyers.
This new law will break the market tradition and present market practise in which majority of the solicitors charge their fees for conveyancing as a percentage for checking buyers have proper title, making sure that Stamp Duty is paid and getting the name of the purchaser registered on the purchase price. The price of houses is diminishing in most part of the country and hence reducing the solicitors’ conveyancing fees is a natural outcome. According to a reputed law firm around 500,000 people shift their homes in a year and about 60% of them have grievances regarding the solicitors’ conveyancing price and services.
A website which deals with price calculation of the homes being shifted and conveyancing for the same has revealed that the average homeowner spends more than 60% of the expenses in Stamp Duty and paying the solicitor’s fees. The expenses borne by the purchasers used to be huge earlier. It almost equalled the price of the property to be bought. That means if a property is priced at £1 million, then the expenses for conveyance almost amount to the same figure. Moreover, the plague of hidden costs was taxing the purchasers badly. By fixing the fees for conveyance, buyers can relax a little. The conveyance market needed a shake up and this law will provide the perfect platform for that.
A normal process of conveyancing would take around three months of time to be completed. But sometime it may take longer depending on the different complications associated with the property dealings.
The new service takes in insurance that can repay mortgage, legal, survey and other expenses in the event of the sale falling through. Every 1 out of 4 deals meets such a fate and in that circumstance the new law will help in reimbursement. The facilities for clients have also improved in that the solicitors will have to remain accessible to their clients 24/7. It is also expected that these new changes will make the conveyance market much more stable.
Kirti S is a web enthusiast and a writer. Kirti has afforded his articles and write-ups autonomously and through various online forums.
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