Help To Buy Valuation
Help To Buy scheme was introduced on 1st April 2013 with an aim to help first-time buyers get on a housing ladder with only 5% deposit and with rest being funded by the Government loan and traditional mortgage loan. The Government provides an interest-free equity loan of 20% (40% within Greater London), mortgage lender provides 75% and the remaining 5% is provided by the first-time buyer.
Help To Buy scheme is administered by Target which was appointed by the Housing and Communities Agency (HCA) to handle Help to Buy redemptions.
If you have purchased the property with the Government’s Help to Buy Scheme and looking to sell or pay back equity loan you will need to obtain Help To Buy Valuation which conforms with RICS Red Book Valuation Standards and is prepared by RICS Registered Valuer.
Help To Buy Valuation report is needed by Target HCA to calculate your Help To Buy redemption loan which is directly proportionate to the market value of the property.
We are a highly experienced Chartered Surveyors firm with exceptional market knowledge of Help To Buy transactions. We are time-efficient and have one of the quickest Help to Buy valuation report turnarounds in the industry. After inspection, the majority of Help to Buy valuation reports are sent back within 3 working days.
We have come across instances where people have submitted estate agents valuations, mortgage valuations and poorly drafted valuation reports that do not conform to the criteria set by Target HCA. Help to Buy valuation reports provided by us carries zero risks of being rejected by Target HCA for being non-compliant.
When you instruct us to carry out Help to Buy valuation you can rest assured that our valuation report conforms with all standards and will be accepted by Target HCA allowing you to further proceed with Help to Buy redemption process.
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Help To Buy Redemption Valuation Report
Our valuation report complies with Target HCA set requirements which are as follows:
- Must be prepared by a member of RICS who is also registered valuer
- The valuer must be independent to an estate agent
- The report must be signed and produced on a company headed paper and addressed to Target HCA
- The valuer must provide at least 3 comparable properties that sold
- The comparables must be within 2 miles radius from subject postcode and be of similar design, size and type
- The valuer needs to physically inspect the property and show the inspection date on the report
Help To Buy Valuation Experts
Frequently Asked Questions
Can I Use Lenders Valuation?
Please note that valuations carried by bank surveyor for lending or remortgage are not accepted by Target HCA. Target HCA requires that you instruct valuer specifically for a purpose of providing loan redemption valuation for Help to Buy.
How Does Help to Buy Valuation Work?
Initially, when you buy the property via Help to Buy you receive equity loan interest-free for 5 years. After which if you don’t repay you will have to pay an interest rate on the original equity loan. In total, you have a maximum of 25 years to repay the equity loan. The amount you pay back to the Government will be calculated on the value of the property as at the date of valuation and not the original purchase price.
If you’re planning remortgage to pay back the equity loan in part or in full then timing Help to Buy Valuation when the market is at the downturn can be beneficial. Because equity loan will be less than when you purchased originally. However, if the property has increased in value then equity loan has also increased in value meaning you’ll have to repay more than you initially borrowed.
How Long Valuation Report Is Valid For?
You should note that Help to Buy RICS Valuation is only valid for 3 months. If the transaction of the property does not materialise then you will be required to obtain a valuation extension. Valuation extension is completed in the form of the desktop report where the surveyor will analyse market conditions remotely and update the report without re-inspecting the property.
You should obtain Desktop Valuation report 2 weeks prior to the original valuation expiration. The desktop valuation again will be valid for 3 months.