Free Legals v Paid: Which is best for your client?

With increasing numbers of clients looking at remortgage or refinance in line with ever-changing interest rates and economic uncertainty, many lenders are offering free legal packages to save clients money on legal fees that are usually paid.

A remortgage still involves a solicitor as the property is being transferred from one lender to another, so the new lender needs to know they have no issues with their charge on the property. They need to make sure that the previous lender is paid back, that the right amount is asked for and they will need to do their own checks on the title of the property and their own charge must be registered by the Land Registry.

However, as the old saying goes; ‘you get what you pay for’ - and where clients are paying nothing, we’re hearing of increasing numbers of issues, mistakes, and delays.

So, what are the benefits of referring your client to a specialist conveyancing team like Holden Smith, instead of them using free legals?

James Smith and David Bancroft, Directors at Holden Smith

1)      You can cut the churn and deliver client satisfaction

 Many lenders have drastically reduced the fees they pay to legal providers, which means the free legal business model must operate on a huge scale to be profitable. This means that if the client opts for free legals, they becomes just another number, working with inexperienced staff, who may lack attention to detail.

This can lead to a frustrating process for your client, cause delays, and leave them feeling very dissatisfied.

2)      You access a dedicated fee earner who is contactable

 You, and your client, will have access to a dedicated fee earner with a direct phone line and email address, who is contactable if and when needed. This is particularly useful if you or your client needs to push something through that is urgent, rather than waiting around on hold for hours on end, to no avail.

Also, if any complexities do arise with the transaction, you won’t need to send the client to another solicitor, as our qualified team can deal with unforeseen legal problems in house.*

Where speed and/or anything slightly complex is concerned, referring your client to a specialist conveyancing team is always best. They will move much quicker, speak to you and the client, and also be able to help with any associated requirements, such as changing the ownership of the property, extending a lease or helping with a Will.

A good solicitor is just as valuable as a good mortgage broker and in those instances – meaning most remortgage deals move smoothly and quickly without a missed deadline in sight.

3)      You receive your processing fee quicker

 As a referrer, you will receive your Proc Fee quicker than if your client works with a free legals provider, because a specialist conveyancer will work faster and take less time to complete the transaction.

On the topic of fees, the client can use the cash back on legal fees deal being offered by many of the lenders to put towards instructing a specialist conveyancer – meaning they – and you – are safe in the knowledge that they will be dealt with by a real person whose interest it is to get their transaction over the line.

*Additional fees may apply.

The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article, please contact Holden Smith.