Help to Buy Valuation

help to buy valuation


What is the Help to Buy Scheme?

Help to Buy was introduced in 2013 by the government to make it easier for first time buyers to get on the property ladder. The scheme offered through the Home and Communities Agency (HCA) is a shared equity scheme where first-time buyers can borrow up to 20% of the cost of a new build house (40% if you live in London). The equity loan must be repaid within 25 years or at the time of sale.

When you decide to repay the loan, you will need a RICS valuation report also known as a Help to Buy valuation report.

Do you have a shared ownership home under a Help to Buy scheme? Click here to view our shared ownership valuation page.

Help to Buy Valuation Requirements

  • You must hire a RICS regulated independent Chartered Valuer to carry out the valuation.
  • They must be registered with RICS and be independent to an estate agent.
  • The Valuer must undertake an internal inspection of the property.
  • They cannot be related to you.
  • The valuer must provide at least 3 comparable properties and sale prices.
  • Those properties must be like for like with regards to property type, size, and age.
  • Valuations carried out for bank or mortgage purposes won’t be accepted.
  • The report must be on headed paper, signed by a RICS surveyor, dated, and addressed to the appropriate association.

What is involved with a Help to Buy valuation?

The valuation report is similar to a mortgage valuation. We would visit and inspect your property and measure the floor area.  We will research the transactions of similar properties and use our knowledge of local markets to arrive at a valuation figure. The Chartered Surveyor undertaking the Valuation will provide you with a thorough and clear report and will include the Surveyor’s opinion of the Value.

Common Questions regarding the RICS Help to Buy Valuation

We believe Valuation costs should be transparent, fixed and never include any hidden extras. All of our Help to Buy Valuations are set at fixed a cost and include the inspection, report, discussion and recommendations once the report is complete and in the hands of our clients.

 Our Help to Buy Valuation costs start at £200.

When paying back your Help to Buy equity loan there are two options: Full Redemption, paying your equity loan back in full with or without selling your property or Partial Redemption also known as Staircasing, where you pay back part of your equity loan without selling your property. In either case a Help to Buy Valuation report is required by HCA.

The valuation is valid for 3 months from the date of inspection. The valuation may be extended by a further 3 months with a desktop valuation which we provide free of charge. After 6 months a further new valuation would be required and a further inspection should be undertaken to confirm the condition of the property.

We can typically fit in Help to Buy valuations within 48 hours and sometimes sooner dependent on your availability. The inspection itself will normally take no more than 45 minutes and we send out a completed valuation report within 2 working days.

Once you have successfully submitted a valid Help to Buy valuation report you will receive an estimated repayment quote. This will include details of any arrears and your daily interest payment rate to allow your solicitor to calculate an accurate final repayment sum.

Target, the company which administers the Help to Buy scheme on behalf of HCA have produced a handy guide which provides more information. Alternatively, you like to speak to Help to Buy or Target. If you’d like to speak with us or book in your own valuation, please get in touch today on 01892 652213.

REDEEM WHEN YOU SELL

If you sell the property against which your loan is secured, you will need to repay your loan in full. This is also known as loan redemption. The repayment amount you will be required to pay is calculated as a proportion of either the current market value or the agreed sale price of your home (whichever is higher).

REDEEM WITHOUT SELLING

In this scenario you would apply to repay (redeem) your loan in full without taking out another loan secured on your property. The repayment amount you will be required to pay is calculated as a proportion of the current market value. The accuracy of the Help to Buy valuation is crucial in this case.

STAIRCASING WITH ANOTHER LOAN

In this scenario you would repay your loan in part at the same time as taking another loan secured on your property with a mortgage lender.

STAIRCASING WITHOUT A LOAN

In this scenario you will be looking to repay (redeem) your loan in part without taking out another loan secured on your property.