If you bought a house through the Help to Buy equity loan scheme, you’ll need a Help to Buy valuation somewhere down the line. In this Help to Buy valuations guide, we take a look at why it is needed, how to find a qualified surveyor, and what to expect after your valuation.
Ready to sell? Contact your local Whitegates branch today.
What is the Help to Buy scheme?
The Help to Buy scheme is a government initiative designed to help first-time buyers buy a new-build home. The scheme allows you to borrow 5-20% of the property’s value from the government, allowing you to buy a home with a deposit of just 5%.
The loan is interest-free for the first five years, making it an attractive option for those struggling to save for a larger deposit.
Related: Help for first-time buyers
Why is a valuation required for Help to Buy?
The amount of equity loan you need to repay is dependent upon the property’s value at the time of repayment, not the price you paid for it. Over time, the value of your property may increase or decrease due to market fluctuations.
Therefore, a valuation is needed to accurately assess its current value when you sell the property, buy a larger share (staircase), or repay the equity loan.
Related: Your guide to selling with a mortgage
Finding a qualified surveyor
Finding a surveyor who is a member of the Royal Institute of Chartered Surveyors (RICS) is crucial because it will guarantee that they will conduct an accurate valuation that the equity loan administrator will accept.
When selecting a surveyor, be sure to consider the fee they will charge you and what availability they have.
What does a RICS valuation include?
During your RICS Help to Buy valuation, the surveyor will assess the condition, location, and size of the home. They will also consider the local market’s current conditions to determine the property’s value.
Additionally, they will take into account whether it is a leasehold or freehold property and the materials that were used when the property was built.
What to expect after your Help to Buy valuation
After your Help to Buy valuation is completed, you can expect to receive a detailed valuation report from the surveyor. This report will outline the current market value of your property, which is crucial in determining the amount you will need to repay on your equity loan.
The report is typically valid for three months, giving you a specific window to act on the valuation.
Related: Pros and cons of remortgaging: Should you consider it?
What to do if your valuation is lower than expected
If the valuation meets your expectations, you can proceed with your plans. However, if the valuation is lower than anticipated, it may impact the amount you need to repay.
In such cases, you have the option to challenge the valuation by commissioning another survey, though this will incur additional costs.
An experienced mortgage advisor can offer guidance on how the valuation impacts your mortgage options, especially if you are looking to remortgage or pay off your Help to Buy equity loan.
They can explain the implications of the outcome on your financial situation and advise on the best course of action.
How we can help
At Whitegates, we can provide you with an accurate overview of market values in your area, which can help you understand what to expect before the official valuation.
We can also recommend reputable, RICS-certified surveyors who specialise in Help to Buy valuations, ensuring that the process is handled by experienced professionals.
Contact your local Whitegates branch for expert advice and guidance.
