Help to Buy
Buying a new home with Help to Buy gives the government an ownership interest in the property that purchasers meet certain criteria for. A valuation will be required if you want to sell your home or repay the government loan if you purchased it through this scheme.
It's not a set amount of money that you are loaned, but rather a proportion of the property's value. It is determined by the value of the property at the time that needs to be repaid.
Supporting your future
Help to Buy Redemption
Full redemption:
All Help to Buy loans must be repaid if you sell your property. A RICS Help to Buy valuation determines the amount that must be repaid at that point in time, or the agreed sale price (whichever is higher).
Staircasing:
A Help to Buy valuation is also required if you want to staircase. The process of staircasing allows you to partially repay your loan without selling the property, so that your share of the property increases.
Property value increases mean you owe more. The outstanding loan amount falls if the value falls.
Therefore, you should get an independent valuation whenever you change your loan, to ensure that the settlement is fair and accurate for you and the loan provider (in this case, the government).
The Importance of Insurance Valuations
The government manages Help to Buy loans through a company called Target. Our surveyors satisfy all the criteria for the Help to Buy valuations:
– Our Help to Buy Surveyors and Valuers are RICS certified
– The valuations are completed in accordance with the RICS Valuation Standards (Red Book)
– We are completely independent of any estate agency
– The report will be on headed paper and signed by a member of the RICS.
– Three comparable sales (matching the type, size, and age of the property and within a 2-mile radius) will be provided.
– Upon inspection, we make sure there are no conflicts of interest
– An inspection of the interior and exterior of the building will be conducted and a report will be provided
What does a Help to Buy valuation include?
– An inspection of the property by a local surveyor
– Description, construction, location, and accommodation of the property
– A description of the property's general condition, along with photographs
– A list of three recent sales of comparable properties nearby
– Property valuation, including evidence and assumptions described in detail