Help to Buy Valuations Stockport
£200 + VAT (Fixed Fee)
Guaranteed Compliant Help to Buy Valuations
Independent RICS Registered Valuers
Fee (Fixed) £200 + VAT
A Help to Buy redemption valuation has many specific appraisal requirements, some of which include:
Help to Buy valuations carried out for bank or mortgage purposes are not acceptable. Torus Surveyors are able to provide valuations that are fully compliant for Help to Buy purposes. We use the latest tablet technology on-site to ensure all our reports are produced to the highest quality, 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
The Valuer must be registered with the recognised qualification of RICS (Royal Institution of Chartered Surveyors)
The Valuer must be independent to an Estate Agent
The Valuer must inspect the interior of the property and provide a full Help to Buy valuation report
The Valuer must provide at least three comparable properties and sale prices. The three comparables provided must be like for like in terms of size, property type, as well as age and within a 2-mile radius to the property that is being inspected
What is a Help to Buy Loan and am I eligible?
Many new homes have been bought over the years with the aid of a Help to Buy equity loan from the UK Government. It is highly likely that you will require a valuation undertaken by an RICS Registered Valuer if you wish to repay all of your equity loan or repay part of it. Torus Chartered Surveyors can produce Target HCA compliant valuations and market leading fees.
In order to apply for a Help to Buy equity loan from the government you must be 18 or over; a first-time buyer and be able to afford the fees and interest payments. The property must be sold by a Help to Buy registered homebuilder; be a new-build and the only home you own and live in. There is also a maximum property purchase price limit for the home you buy depending on which region it’s in. You can buy a home up to and including the maximum property purchase price limit. The maximum property purchase price for Stockport is £224,400.
However, if you have previously owned residential land or a home in the UK or abroad or had any form of sharia mortgage finance you would not be eligible for an equity loan.
How does it work?
The first stage is to obtain a valuation of your property. To produce a redemption figure for redeeming your loan, you need to provide a valuation for your property that has been conducted by a RICS (Royal Institute of Chartered Surveyors) Certified Surveyor.
Once a RICS Valuation Report has been produced, it should be sent to Target.
It is important to note that this valuation will only be valid for 3 months. If your loan redemption is not completed within 3 months of this date, you will need to provide Target with a Desktop Valuation, re-confirming your property value. You must complete your transaction within a maximum of 6 months of the original valuation.
You will need to provide your surveyor with a copy of the full valuation requirement list. This can be found on the Target website.
Once you have successfully submitted your valid valuation report you will receive an estimated repayment quote. This will include details of any arrears and your daily interest payment rate allowing your solicitor to calculate an accurate final repayment sum.
NB. Where you are repaying the loan and remaining in the property the repayment figure is set using the determined market value. In addition, you must also clear any arrears on the account prior to obtaining approval to start the process. You will be required to pay any interest payments due from the last payment made to the agreed completion date.
In the case of a house sale the repayment sum is based on the market valuation or the sales price (whichever is the highest of the two). You must be able to clear any arrears on the account by the defined completion date or liaise with Target directly to make payment arrangements. You will be required to pay any interest payments due from the last payment made to the agreed completion date.
The next stage is to instruct a solicitor to undertake the required legal conveyancing. The following website may assist you in selecting a Solicitor: www.lawsociety.org.uk
Commence the Redemption Process. You need to complete a Loan Redemption Form and return it to Target together with payment of a £200 administration fee. NB. Target will provide a form for a redemption via house sale (Form A) or a redemption without house sale (Form B) House sale. Any outstanding interest payments prior to completion must be cleared and this is your responsibility. Completion will not be granted until this is done, or an interest payment shortfall agreement is in place. Staircasing – prior to beginning the process, all arrears must be cleared.
Redemption Letter Process. Upon receipt of your loan redemption form, fee and valuation Target will provide a redemption letter. This will be sent to both yourself and your solicitor. Your solicitor will also receive a guidance pack and a copy of the required form of legal undertaking to be submitted at least 15 business days prior to completion.
The redemption letter will include your estimated repayment figure based on the valuation. An explanation of how the redemption figure is reached for a sale and staircasing scenario is set out below.
If you are redeeming through the sale of your house the letter will also include any arrears to be cleared and an indication of your interest payment daily rate to enable your solicitor to calculate any interest due from your last payment to your expected completion date. Full details will be issued to your solicitor in the guidance pack; however, you must be aware of the requirement for a legal undertaking to be submitted to Target 15 business days prior to any set completion date.
Redemption without Selling Your Property. In this case, the market value used to calculate your Redemption Figure will be the figure provided in the RICS Valuation Report for your property.
Redemption with the Sale of Your Property. In this case, the market value used to calculate your Redemption Figure will be the figure provided in the RICS Valuation Report or the Sales Price (whichever is the higher of the two).
Ready to Complete – Undertaking. At least 15 working days prior to the expected completion date, your solicitor must provide a legal undertaking to Target by email. It is important to note that if the completion date stated on the legal undertaking does not take place and is delayed by more than one week a new solicitor undertaking is required and new redemption figure confirmed. Where there are not sufficient funds to settle the interest payment you must engage with Target directly and either agree a payment to cover the shortfall or enter into an interest payment shortfall agreement. Target will not grant authority to complete until all monies due to the agency have been settled or agreement reached on clearing the sum after completion.
ATC (Authority to Complete). Within 5 days of receipt of the undertaking (or on completion of confirming any additional payment arrangements) the Authority to Complete will be issued by Target. You can then complete your transaction.
Finally, the Completion. Your solicitor is responsible for sending through the correct redemption monies to Target. On receipt of cash the amount will be validated against the figures stated on the Authority to Complete, and if the amount received matches the ATC one of the following actions will take place:
1. In the case of stair-casing (redeeming without a house sale), a memorandum of stair-casing will be issued stating the remaining equity mortgage percentage.
2. In the case of repayment from a house sale, an e-DS1 will be issued to Land Registry to release the Homes and Communities Agency’s charge and confirmation of such will be issued by Target.
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.