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How cost protection may benefit you

At Eden, we want to provide the best certainty and security for our clients. That’s why all our quotes come with the option of no excess cost protection.

At first glance ‘No sale, no fee’ sounds appealing. However, there are pitfalls that could end up costing you much more, which can be avoided by using a cost protection plan.

In this article, we’re going to break it all down, let’s get into it.

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What is cost protection?

Cost protection is a no excess cover that protects your finances in case your property sale or purchase falls through due to reasons outside your control. It covers the up-front costs associated with buying or selling a property, so whether you get an adverse search, gazumped, or the other party pulls out, you can rest easy knowing your finances are secure.

Cost protection covers more than just legal fees. It also covers surveys, valuations, and mortgage fees. When you know that you’re protected, you get peace of mind. Moving home can be stressful, so cost protection gives you less to worry about.

If you're nearing exchange of contracts on a property purchase and the seller unexpectedly pulls out for reasons beyond your control, there's often little recourse. However, cost protection would allow you to recover expenses already incurred like mortgage fees, survey costs, and conveyancing charges.

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What is ‘No sale, no fee’?

A ‘No sale, no fee’ offer promises that if your property transaction does not complete, then you will not have to pay your conveyancer any legal fees.

If your house sale or purchase were to fall through, you would usually be charged by your conveyancer for the work up to that point based on the work completed. So, a ‘No sale, no fee’ offer can be enticing and provide advantages for you as a client.

But it often sounds like you are saving more than you first think. If your sale or purchase fell through just before the exchange, you wouldn’t owe any legal fees, but you would still need to pay for search fees, any other disbursements, and third-party costs.

It’s key to remember that these promises only save you from paying legal fees, it doesn’t cover everything in the purchase or sale process.

How does cost protection compare to ‘No sale, no fee’?

‘No sale, no fee’ won’t cost you anything if the conveyancer offers it. Moving to cost protection works slightly differently. Cost protection comes at an additional cost but offers you a much stronger cover.

Purchasing or selling a house can be expensive and we understand that extra costs can be frustrating. And so, cost protection is optional on all our quotes. You don’t have to take out the cover if you don’t feel the financial security it provides is right for your sale or purchase.

To help, we’ve put together a table to compare ‘No sale, no fee’ and cost protection cover.

Why Eden provides cost protection cover

As a client, you are always at the forefront of our minds. We want to make conveyancing more simple, and less stressful. We offer cost protection as it is the best way to protect your finances if your sale or purchase falls through due to reasons outside your control.

The average cost of a property transaction collapsing is £2,500. Our goal is to make sure you lose as little of that as possible.

Cost protection adds certainty for things that are outside your control. It offers greater protection than ‘No sale, no fee’, letting you focus on the excitement of your move rather than worrying about the financial implications of a property transaction falling through.

Learn more about Eden's cost protection here.

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Cost protection FAQs

How do I take out cost protection?

Taking out cost protection is easy. It’s completely optional and you can purchase it from our third-party provider, Rhino. They offer protection for both home buyers and sellers. You can follow our simple steps when requesting a quote from us, or even after you’ve instructed us.

When can I take out cost protection?

If you would like to purchase Home Buyers Protection it needs to be bought prior to, or within 14 days of notifying your solicitor / mortgage lender of your purchase.

If you would like to purchase Home Sellers Protection it needs to be bought prior to, or within 7 days of written acceptance of the offer, going to the buyer.

What fees does cost protection cover?

Home buyers cost protection covers:

  • Conveyancing fees
  • Mortgage fees
  • Survey fees
  • Search cover
  • Gazumping

Home sellers cost protection covers:

  • Conveyancing fees
  • Search cover
  • Gazundering

How much is cost protection?

Home buyer protection starts from £74 for essential cover, or £144 for premium cover.

Home seller protection costs £69 for standard cover.

What’s the key difference between cost protection and no sale, no fee?

The main difference between cost protection and no sale, no fee is the type of fees they provide cover for. No sale, no fee would only cover legal fees. Cost protection, on the other hand, would cover legal fees as well as other fees involved in a property transaction, like mortgage & survey fees etc. Although no sale, no see may sound enticing, it may end up costing you more in the long run.

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Buying or selling a property?

Thinking about, or already in the process of buying or selling a property?

If you are, you’ll need to instruct a conveyancer. At Eden, we’re dedicated to helping you from start to finish, you will always be front of mind.

You’ll have your own dedicated property lawyer and access to our 24/7 online platform, where you can check progress whenever, wherever.

Get a quote