Help to Buy Valuations
£200 + VAT (Fixed Fee)
Guaranteed Compliant Help to Buy Valuations
Independent RICS Registered Valuers
Fixed Cost £200 + VAT
A Help to Buy redemption valuation has many specific appraisal requirements, some of which include:
The Valuer must be independent to an Estate Agent
The Valuer must be registered with the recognised qualification of RICS (Royal Institution of Chartered Surveyors)
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
The Valuer must inspect the interior of the property and provide a full Help to Buy valuation report
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
What is a Help to Buy Loan and am I eligible?
To apply for a Help to Buy equity loan you must be 18 or over; a first-time buyer and be able to afford the fees and interest payments. The property must be a new build; sold by a Help to Buy registered homebuilder 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 Warrington is £224,400.
However, if you have previously owned a home or residential land 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?
You will need to pay a minimum deposit of 5% of the property purchase price and arrange a repayment mortgage of at least 25% of the property purchase price. You can then borrow an equity loan to cover from 5% and up to 20% of the property purchase price of your newly built home. The equity loan percentage you borrow is used to calculate your interest and loan repayments. You do not have to pay interest for the first five years. Interest rates will commence in the sixth year. You can pay back part or all of your equity loan at any time. This is when you are required to get a market valuation report from a chartered surveyor when you make a repayment.
More information can be found on the Help to Buy Equity Loan Government Website.
Why pay off your Help to Buy Loan?
As mentioned above, the first five years of your equity loan is normally 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 your house you will benefit or suffer from only a percentage change in value. For example, if 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
When paying off your loan, you normally have two options:
A) Help to Buy Staircasing or partial repayment
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 higher percentage of any future increase in value.
B) Help to Buy Redemption or full repayment
When you pay off all the equity loan in your property.
It is important to note that you should 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, in the long run this could end up costing you money.
How long does my RICS Help to Buy Valuation Last?
Your RICS Valuation Report is valid for 3 months only.
If you do not pay off your equity loan within this period, Target usually accept a further Desktop Valuation. This must be provided from the same 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.
Further criteria that govern this Desktop Valuation:
The Valuer must make reference to the original report and confirm the updated report is a Desktop Valuation
The Valuer must be the same surveyor from the first inspection. They do not need to reinspect the property, but they must refer to this original report
The Valuer must provide at least six 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
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.