A help-to-buy valuation is an independent valuation from a RICS registered valuer for a property bought with the help-to-buy scheme, introduced by the government to support first time home buyers get a foot onto the property ladder. The need for the ‘Red Book’ or RICS registered valuer valuation comes into play when the homeowner is looking to repay the loan, remortgage the house or sell the property. The valuation provides an independent assessment of the market value of the property, as required by the government appointed administrator or housing association. From this valuation, the administrator of the loan can work out what needs to be paid back to settle the debt.

Target (HCA)

Target is an organisation which has been appointed by the government to process the loan administration services on behalf of the Home & Communities Agency. Target require a specific RICs valuation to be sent to them referencing a detailed valuation of the help-to-buy administered property.

Timing is vital to ensure that the valuation is used within its qualifying period of 3 months.

Qualifying Criteria

There are a number of standard requirements of an RICS valuer to be entitled to provide a help-to-buy valuation as well as some set criteria for the report itself. These are:

• The Valuer must be registered with the recognised qualification of RICS
• The Valuer must be independent to an estate agent
• The report must be on headed paper, signed by the RICS surveyor and addressed to Target HCA
• The Valuer MUST provide at least 3 comparable properties and sale prices
• The Valuer must not be related or known to you
• The Valuer must inspect the interior of the property and provide a full valuation report
• Valuations carried out for bank or mortgage purposes are not acceptable
• A copy of the valuation report must be supplied to Target; the inspection date must be shown on the report

Help-to-buy Valuation Charges

Charges for valuations of this type for properties throughout the Midlands are as follows, dependent upon the number of bedrooms within the property;

• 2 bed or smaller, £250 plus VAT
• 3 bed, £300 plus VAT
• 4 bed, £325 plus VAT
• 5 bed, £350 plus VAT

The RICS valuation will only be valid for 3 months. If the loan redemption or sale is not completed within 3 months of this date, an extension will need to be provided. An additional charge of £100 will be levied should an extension be required.

If you require a help-to-buy valuation, in the first instance, please contact one of our RICS registered valuers who will discuss the specific timing and potentially liaise directly with your estate agent or mortgage advisor to ensure that you receive the valuation in a timely fashion so as to avoid any unnecessary additional charges for an extension to the valuation. It is important to bear in mind that a remortgage application can take quite some time.

Contact

For Northamptonshire, Warwickshire or Leicestershire, please contact Josh Peat at the Howkins & Harrison Rugby office on 01788 564687 / Joshua.peat@howkinsandharrison.co.uk

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