Whether you’re selling your home, remortgaging, or repaying your Help to Buy loan, e.surv can provide a market valuation from a RICS registered surveyor. Ask for a quick quote today.
Help to Buy was introduced by the Government in 2013 with many people taking advantage of the scheme to get a foot on the first step of the property ladder.
It’s a shared equity scheme where first-time buyers can borrow up to 20% of the cost of a new build house (40% if you live in London).
If you bought a home using the Help to Buy scheme, your loan is interest free for 5 years. The full loan must be repaid after 25 years.
Alternatively, you can choose to repay the loan sooner, remortgage or pay it off when you sell your property.
When the time comes to sell, the amount you must pay back will be calculated based on the current market value of your home. Not the original purchase price.
To find out your property’s current market value, you are required to get an independent Help to Buy valuation from a RICS registered valuer. This valuation will be used to determine the amount you must repay.
If the value of your property has decreased, then the amount you must repay will be less than you originally borrowed. However, if the value of your house has increased, so will the amount you must repay.
When you have obtained a Help to Buy valuation from a RICS registered valuer, you must send it to Target who will tell you how much you need to repay.
It is important to note that your Help to Buy valuation will only be valid for 3 months. Therefore, it is vital that you plan your timings carefully as, if you get your valuation report too soon, it may not be valid by the time the sale on your property is completed.
This is also important to bear in mind if you are remortgaging as this process can take some time.
A RICS Help to Buy valuation is necessary when repaying or remortgaging your Help to Buy loan. It provides an independent market value assessment of your property, ensuring you repay the correct amount based on its current value.
A Help to Buy valuation is valid for three months. It’s important to plan carefully to ensure your valuation is current at the time of sale or remortgage to avoid needing a new assessment.
If your property’s market value has increased, you will repay more than the original loan amount. If the value has decreased, the repayment amount will be less. The valuation reflects the current market conditions and affects how much you owe.