Help To Buy
Help to Buy is the name of a government programme in the United Kingdom that aims to help first time buyers, and those looking to move home, purchase residential property. It was announced in Chancellor of the Exchequer George Osborne’s 2013 budget speech, and was described as “the biggest government intervention in the housing market since the Right to Buy scheme” of the 1980s. It is an extension of a previous programme called First-Buy that was aimed solely at first-time buyers. Help to Buy has itself been expanded and extended.
So, if you wanted to buy a house in England for £200,000 with a 5% deposit and a 20% Help to Buy loan you would need: £10,000 deposit £150,000 mortgage £40,000 Help to Buy equity loan Using an equity loan rather than going it alone has two key benefits: you will only need a 5% deposit and, as you’re only borrowing 75%, instead of up to 95%, you will be able to access better mortgage rates.
Help to Buy equity loans are for a percentage of the property value, rather than a set cash amount. This means you could end up paying back more or less than you borrowed, depending on whether your home rises or falls in value which is when an RICS Qualified Surveyor/Valuer is required.
For example, if you take out a 20% equity loan to buy a property worth £200,000 – a loan of £40,000 – and when you come to sell, the property is worth £250,000, you’ll have to repay £50,000 – 20% of the new value of your home. The valuation by a professional is written into your contract with the Help to Buy Company and safeguards both parties by ensuring an accurate valuation forms the basis for calculations
If you therefore wish to :-
- buy more of a %
- or pay off your
Help to Buy loan
you will need a Chartered Surveyor who is a Registered Valuer to carry out a valuation.
This is not the same as an appraisal by an estate agent who will value the property with a view to getting your business if you wish to sell.
The Help to Buy Companies like Target or H.C.A. require a qualified valuer to carry out an inspection and provide a formal report and the valuation must be supported by comparable sales and the Help to Buy Company check the authenticity of the comparable evidence using online tools like Rightmove.
Fees for a valuation start at around £250+vat but may be higher depending upon size and location of the property.
Email us with the address and postcode of your property for a fee quote.
The current guidelines regarding Coronavirus will need to be considered with social distancing and we will where necessary wear protective gloves and mask unless the property is vacant and has been for over 7 days.