Help to Buy Scheme Explained
Help to Buy valuations are essential for determining the current market value of your property. This is particularly important when you plan to repay your equity loan, sell the property, or remortgage. The valuation ensures that the repayment amount accurately reflects the current property value, protecting both the homeowner and the government's investment.
Valuations must be conducted by an independent, RICS-registered surveyor. These professionals possess the necessary qualifications and expertise to provide accurate and unbiased property assessments.
Valuations are generally required when repaying the equity loan, selling the property, or remortgaging. To ensure accuracy, it’s important to have an up-to-date valuation, as the property market can fluctuate. Typically, valuations are valid for three months.
Help to Buy Scheme Explained
Overview of the Help to Buy Scheme
The Help to Buy scheme is a government initiative aimed at making home ownership more accessible. It allows first-time buyers and existing homeowners to purchase a new-build home with as little as a 5% deposit. The scheme offers equity loans that can cover up to 20% (or 40% in London) of the property value, simplifying the process of securing a mortgage for the remaining amount.
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Eligibility Criteria
To qualify for the Help to Buy scheme, you must be a first-time buyer or a homeowner looking to move. The property must be a new-build home and the purchase price must not exceed the regional price cap. Additionally, you must not own any other property at the time of purchase.
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Types of Properties Covered
The scheme covers new-build properties from registered homebuilders, including various types such as apartments, houses, and townhouses. It is designed to support the purchase of primary residences and does not apply to buy-to-let or second homes.
What our Help to Buy Valuations Include
Key Elements Assessed
During a Help to Buy valuation, the surveyor evaluates various elements including the property's location, condition, size, and features. They also consider comparable properties in the area to ensure the valuation aligns with current market trends.
Methodology Used
Surveyors use a combination of on-site inspections and market analysis to determine the property's value. This includes inspecting the exterior and interior, noting any improvements or defects, and comparing similar properties that have recently sold in the vicinity.
Factors Influencing the Valuation
Several factors can influence the valuation, such as the property’s condition, age, location, market demand, recent sales of comparable properties, and unique features or upgrades.
Understanding your Valuation Report
Interpreting the Valuation Figures
The valuation report provides a detailed breakdown of the property’s assessed value. Understanding these figures is crucial as they determine the repayment amount on your equity loan. The report also explains how the valuation was calculated.
Common Terms and Metrics
Familiarising yourself with terms like "market value," "comparable sales," and "condition rating" can help you better understand the report and the factors influencing the valuation.
Addressing Discrepancies
If you believe there are discrepancies in the valuation report, discussing them with the surveyor can help. Providing additional information or evidence can resolve differences and ensure an accurate valuation.
Repaying your Equity Loan
How Repayment Amount is Calculated
The repayment amount is calculated based on the current market value of the property. If the value has increased since the purchase, the repayment amount will reflect this increase proportionately to the equity loan percentage.
Options for Repayment
There are several options for repaying the equity loan. You can sell the property and use the proceeds to repay the loan, remortgage to release funds, or use savings or other financial resources to pay off the loan.
Timeline and Process
The repayment process involves a few key steps. First, obtain an independent RICS valuation. Then, submit the valuation report to the Help to Buy agent to receive the repayment amount calculation. Finally, arrange for repayment through sale, remortgage, or savings.
Arrange a Help to Buy Valuations in the Midlands
MCS can provide Help to Buy Valuations all across The Midlands, including the areas of:
Birmingham, Coventry, Worcester, Cheltenham, Gloucester, Oxford, Stoke On Trent, Warwick, Stafford, Redditch, Bromsgrove, Evesham and The Cotswolds
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