Fixed fee £200

Many new homes have been bought with the aid of a Help to Buy equity loan from the UK government in recent years. If you wish to repay part or all of this equity loan, it is likely that you will require a valuation undertaken by an RICS Registered Valuer. As residential chartered surveyors in Manchester, we can produce Target HCA compliant valuations and market-leading fees.
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What is a Help to Buy Loan?

Many new homes have been bought with the aid of a Help to Buy equity loan from the UK government in recent years. If you wish to repay part, or all of this equity loan, it is likely that you will require a valuation undertaken by an RICS Registered Valuer. We can produce Target HCA compliant valuations and market leading fees.

Why pay off your Help to Buy Loan?

Normally the first five years of your equity loan are interest free. After those five years have expired, interest on the loan often becomes payable. You may decide that it is cheaper to pay off.

Whilst you have the Help to Buy loan on house you will benefit or suffer from only a percentage change in value. For example is 100% of your house appreciates £10,000 but you have a 20% equity loan, when you come to sell your house you would only be entitled to only £8,000 of that appreciation.

Paying off your Help To Buy Equity Loan

You normally have two options when paying off your loan.

1) Help to Buy Staircasing or partial repayment; this is when you decide to pay off part of your equity loan. This would increase your equity in the property and you could potentially benefit from a larger percentage of any future increase in value.

2) Help to Buy Redemption or full repayment; this is when you pay off all of the equity loan in your property.

It is important that you take specialist financial advice before paying off your Help to Buy Loan as there are pitfalls. if you are funding the repayment with additional borrowing this could be more expensive than the original Help to Buy Loan. Additionally the value of your home could go down as well as up, this could end up costing you money in the long run.

Requirements for a Help to Buy valuation

Torus Surveyors undertake many help to buy valuations every year and are fully conversant with the requirements, some of which include;

 

  • The Valuer must be registered with the recognised qualification of RICS
  • The Valuer must be independent to an estate agent
  • The Valuer MUST provide at least 3 comparable properties and sale prices. The comparables provided must be like for like in terms of property type, size, and age and within a 2 mile radius to the property that is being inspected
  • The Valuer must inspect the interior of the property and provide a full valuation report
  • Valuations carried out for bank or mortgage purposes are not acceptable.

How long does my RICS Help to Buy Valuation Last?

The RICS valuation will only be valid for 3 months.

If you do not pay off your equity loan within this period, Target usually accept a further Desktop Valuation from the surveyor who originally inspected your property. It must be conducted and sent to Target within 2 weeks of the original valuation expiring and will only be valid for a further 3 months.

There are some further criteria that govern this desktop valuation:

  • The Valuer must refer back to the original report and confirm the updated report is a Desktop Valuation.
  • The Valuer must be the original surveyor from the first inspection. They do not need to reinspect the property, but they must make reference to this original report.
  • The Valuer must provide at least 6 comparable properties and sale prices within the last year if the property has increased or decreased in value.
  • The report must have a new date on it and be signed by the Valuer.

Desktop valuations will be allowed after the original valuation has expired for up to a further three months. If the desktop report expires and a total of six month has been reached and you are yet to complete the transaction you will need to re-inspect your property and a new RICS valuation report provided.

Torus Surveyors are able to provide valuations which are fully compliant for Help to Buy purposes. We use the latest tablet technology on site to ensure all of our reports are produced to the highest quality, are Help to Buy compliant and produced as fast as possible. We aim to return the completed report to you within 24 hours of our inspection.

Torus Surveyors are able to provide valuations which are fully compliant for Help to Buy purposes. We use the latest tablet technology on site to ensure all of our reports are produced to the highest quality, are Help to Buy compliant and produced as fast as possible. We aim to return the completed report to you within 24 hours of our inspection.

If you require an RICS Help to Buy valuation in Greater Manchester and surrounding areas, then Please contact us on 0161 929 7892 or info@house-survey.co.uk