If you are selling a property purchased under the Help to Buy Equity Loan scheme, staircasing, or repaying your equity loan, obtaining an accurate and compliant market valuation is a critical requirement.
For homeowners, solicitors and lenders, a professionally prepared Help to Buy valuation carried out by experienced residential Valuers and chartered surveyors ensures the process proceeds smoothly and in full compliance with scheme guidance.
What Is the Help to Buy Equity Loan Scheme?
The Help to Buy Equity Loan scheme allowed buyers to purchase a new-build property with:
– A minimum 5% deposit
– A government equity loan (up to 20% outside London, 40% in London)
– A standard mortgage for the remainder
Although the scheme has now closed to new applicants, many homeowners remain within the scheme and must comply with its requirements when selling, remortgaging, or repaying the loan.
A key requirement is obtaining an independent market valuation.
When Is a Help to Buy Valuation Required?
A formal Help to Buy valuation is required in the following circumstances:
1. Repaying the Equity Loan (Full or Partial Staircasing)
If you wish to repay all or part of your equity loan, the amount owed is calculated as a percentage of the current market valuation, not the original purchase price.
2. Selling Your Property
When selling a Help to Buy property, the equity loan redemption figure is based on the property’s current market valuation.
3. Remortgaging
In certain remortgage situations, particularly where borrowing increases, a formal market valuation may be required.
What Are the Valuation Requirements?
Help to Buy scheme administrators set strict requirements for a compliant Help to Buy valuation. These typically include:
– The report must be prepared by an independent chartered surveyor
– The surveyor must be a member of the Royal Institution of Chartered Surveyors (RICS)
– The valuation must be a formal market valuation
– It must be valid for a limited period (usually 3 months)
– It must not be provided by an estate agent
– The valuer must not have a conflict of interest
Using experienced residential Valuers and chartered surveyors ensures these requirements are met.
What Is Market Valuation?
Under RICS standards, market value is defined as:
“The estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion.”
For Help to Buy valuations, this definition is critical, as the repayment figure is calculated directly from this value.
Why Estate Agent Appraisals Are Not Acceptable
Many homeowners assume that an estate agent’s appraisal is sufficient. However:
– Estate agent valuations are marketing opinions
– They are not independent Red Book valuations
– They are not prepared by regulated chartered surveyors
– They do not meet Help to Buy compliance requirements
A formal Help to Buy valuation must be prepared by qualified residential Valuers to ensure acceptance by the scheme administrator.
How Residential Valuers Assess Market Value
Experienced residential Valuers and chartered surveyors will assess:
– Recent comparable sales evidence
– Property condition and specification
– Location and local market trends
– Size and accommodation
– Tenure (freehold or leasehold)
– External factors impacting value
The valuation is evidence-based and professionally reasoned, providing a defensible market valuation figure.
What Happens If the Valuation Is Disputed?
If the Help to Buy administrator considers the market valuation to be inconsistent with market evidence, they may request further clarification or challenge the figure.
Using experienced residential Valuers and chartered surveyors reduces the likelihood of delay or rejection, as the report will be supported by appropriate comparable evidence and clear methodology.
Validity Period of a Help to Buy Valuation
Help to Buy valuations are usually valid for 3 months from the date of inspection. If your transaction does not complete within that period, an updated market valuation may be required.
Timely instruction of a chartered surveyor is therefore essential to avoid delays.
Why Choose Chartered Surveyors for Help to Buy Valuations?
Appointing experienced chartered surveyors provides:
– RICS-compliant reporting
– Professional indemnity protection
– Independent and objective advice
– Compliance with Help to Buy scheme rules
– Clear, defensible market valuation methodology
A properly prepared Help to Buy valuation protects you from disputes and ensures the equity loan redemption figure is correctly calculated.
Our Help to Buy Valuation Service
We provide:
– Independent market valuation reports
– RICS-compliant Help to Buy valuations
– Fast turnaround times
– Clear and transparent fee structures
– Professional advice throughout the process
All reports are prepared by qualified residential Valuers and chartered surveyors, ensuring full compliance with Help to Buy requirements.
Contact Our Residential Valuers Today If you require a compliant Help to Buy valuation or an accurate market valuation, our experienced team of residential Valuers and chartered surveyors are here to assist.
Get in touch today to ensure your valuation meets scheme requirements and keeps your transaction on track.
https://www.res-prop.com/project/residential-valuation/
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