What Are Help to Buy Valuations?
Many people have used the Help to Buy scheme to purchase their homes. If you are now ready to take the step of remortgaging your home and paying down your debt, there are a few things you will need to do first.
The biggest thing is that you will need to get a valuation that is RICS regulated. These valuations are for the purpose of selling, paying off, or obtaining more equity in homes that have been purchased through the Help to Buy scheme.
What is Help To Buy?
The Help to Buy scheme is a program where you can borrow up to 20 per cent of the cost of a newly built house if you are a first-time buyer. The program offers up to 40 per cent for buyers who live in London to accommodate for higher costs of living.
The loan is interest-free for the first five years. You can opt to put down 20 per cent of the home's purchase price and then pay rent on the rest of it until you are able to afford the whole thing. Provided by the government, this program is intended to help young citizens buy their first homes and get out of the cycle of renting.
There are some circumstances where this program is available to existing homeowners as well. Through Shared Ownership, you can find a newly built home or look at resale programmes provided by local housing associations. Once you get to the point where you can pay off your Help to Buy loan, want to take out more equity on the property, or want to sell the property, you will need to get an RICS valuation.
Finding a Surveyor?
Luckily, it is easy to find a surveyor in your area. There are many companies that provide professional surveying services for an accurate report. When finding a surveyor for your home, you will need to ensure that they are professional and will adhere to the standards of the RICS.
For the surveyor to meet the requirements of the RICS, they must be registered with the RICS. They cannot work with an estate agent, they must work independently. They also cannot be related to you, and the valuation cannot be completed for bank or mortgage purposes.
When completing the valuation, the surveyor must provide three comparable properties and their sale prices. These properties must be within a two-mile radius of your property, and they must be comparable in size, type, and age. It must be a complete valuation report with an inspection of the property interior. Finally, the report must be completed on headed paper and signed by the surveyor, dated, and addressed to the appropriate parties.
If you are considering selling, paying off, or extending equity on your RICS property, be sure to get the proper valuation you need. Look for professional surveyors in your area to ensure you get the correct documentation before proceeding forward with this big step. With a valuation in hand, you can move forward knowing that you have everything you need to get started with the next phase of your life.