Help to Buy Valuations

A Help to Buy valuation is a professional assessment of your property’s current market value, performed by a RICS accredited surveyor. This valuation is required when you plan to sell, remortgage, or repay your Help to Buy equity loan, as it helps to determine the repayment amount based on the property’s present worth.

A Help to Buy valuation is essential because your equity loan is a percentage of the property’s value. The valuation helps calculate the amount you need to repay on your equity loan, based on the current market value of your property, allowing for a fair and accurate repayment calculation.

To find a RICS accredited valuer, you can visit the RICS website and use their “Find a Surveyor” tool. This feature allows you to search for local RICS registered valuers, making it easy to locate a qualified professional to perform the valuation services you need. Additionally, you can ask for personal recommendations from friends or family members who have recently had their properties valued.

The cost of a Help to Buy valuation can vary depending on factors such as the surveyor’s fees, location, and the size and complexity of your property. Generally, fees for a Help to Buy valuation range from £150 to £500. It’s essential to request quotes from multiple surveyors and compare their fees and services to find the best option for your needs.

A Help to Buy valuation is valid for 3 months from the date of issue. You must submit the valuation report to your Help to Buy agent within this time frame to ensure the accuracy of the repayment calculation and to avoid potential delays or the need for re-valuation.

RICS valuers take into account various factors when determining your property’s current market value. These include the property’s location, size, overall condition, any recent improvements or renovations, and local market trends, such as comparable property sales in the area. By considering these factors, the valuer can provide a comprehensive and accurate assessment of your property’s worth.

If you believe the valuation is inaccurate, you can request a second opinion from another RICS accredited valuer. You’ll need to provide evidence supporting your claim, such as recent comparable sales or information about any improvements that may have been overlooked in the initial valuation. Keep in mind that obtaining a second valuation may involve additional costs.

Your equity loan repayment is calculated based on the current market value of your property, not the original purchase price. For example, if your property’s value has increased since you first obtained the equity loan, you will be required to repay the same percentage of the new, higher value. This ensures that the repayment amount is fair and accurately reflects the property’s current worth.

Staircasing is the process of making partial repayments towards your equity loan, allowing you to gradually reduce the loan amount and increase your ownership stake in the property. Each repayment must be a minimum of 10% of your property’s current market value, which is determined through a Help to Buy valuation. This ensures that the staircasing repayment amount accurately reflects the property’s present value.

If your property’s value decreases, your equity loan repayment will be based on the lower value. You’ll still be required to repay the same percentage of the property’s value as per your original equity loan agreement. This ensures that the repayment amount remains fair and accurately reflects the property’s current market value.

No, Help to Buy valuations must be carried out by a RICS accredited surveyor, as they provide a more accurate and reliable assessment of your property’s value. Online valuation tools may not consider all relevant factors and cannot replace the expertise of a qualified professional.

Yes, if you’re remortgaging and have an outstanding Help to Buy equity loan, you’ll need a valuation to determine the amount you need to repay or the new mortgage amount. The valuation will ensure that your new mortgage terms accurately reflect your property’s current value and the remaining equity loan balance.

No, you must repay the equity loan when selling your property. The Help to Buy valuation will determine the repayment amount based on the property’s current market value. This ensures that both you and the government receive a fair share of the property’s value, in line with the original equity loan agreement.

To ensure the most accurate valuation, it’s essential to present your property in the best possible light. This includes cleaning and decluttering your home, completing any necessary repairs, and documenting any significant improvements that could increase its value, such as extensions or high-quality fittings. By preparing your property, you’ll provide the valuer with a clear understanding of its current condition and features, contributing to a more accurate assessment.

Once you have the Help to Buy valuation report, submit it to your Help to Buy agent within the 3-month validity period. They will review the report, approve the valuation, and confirm the equity loan repayment amount. If you’re selling your property, you can proceed with the sale process, while if you’re remortgaging, you can use the valuation to negotiate new mortgage terms. If you’re staircasing, you can use the valuation to calculate the repayment amount and start the partial repayment process. In all cases, it’s essential to maintain open communication with your Help to Buy agent to ensure a smooth and successful outcome.