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Help To Buy Valuation
If you have purchased a home using the help to buy scheme, you will need to get an independent RICS valuation when you come to sell the house or repay the government loan. Unlike mortgages from banks, the help to buy scheme loans you a proportion of the property’s value, rather than a set amount of money. The amount that needs to be repaid depends on the market value of the property at that moment in time.
Importantly, the amount that you must pay back will be calculated on the value of the property at the time of repayment, not the original purchase price.
As such, choosing when to pay back your loan on your own terms can be advantageous if the market value of your property has decreased since the initial purchase. Alternatively, if the value of the property has increased, you will end up paying more than you initially borrowed.
Once you have your Help to Buy Valuation you must send it to Homes England, who will in turn calculate the value of your loan and provide you with the repayment figure.
What does a Help to Buy valuation include?
What does a Help to Buy valuation include:
- Inspection of the property by a surveyor local to the area.
- Overview of the property, its construction, locations and accommodation.
- Overview of the property’s general condition, with photographs.
- Details of three comparable properties nearby that have been sold in the past 12 months.
- Valuation of the property, with a detailed description of the evidence and assumptions used.
- In accordance with Homes England requirements, valuations are valid for 3 months. If it is less than 2 weeks since the expiration date, we can carry out desktop research valuation to extend the valuation for a further 3 months, for a small additional fee.