What is Help to Buy?

The Help to Buy scheme was initiated with the goal of helping people get onto the housing ladder. It is an interest-free equity loan scheme, designed to help people buy a home and reduce the size of that daunting deposit.

If you have a 5% deposit and qualify to apply, you can apply for a mortgage to cover just 55% of the total price of the property and borrow the remaining 40% (or 20% outside London) from the government. The government’s loan is interest-free for the first five years.

When you sell your property, 40% of the profit will go to the government. If you buy a property for £400,000 and sell it for £500,000, the government will receive £200,000 and you will receive £300,000. You will need to pay off your mortgage with your share of the profit.

The scheme ended on 31^st March 2023, however.

Staircasing in Help to Buy

Purchasing extra shares of your shared ownership property is known as staircasing, it’s a vital part of the Help to Buy journey, as it allows homeowners to own a bigger part of their property. A correct Help to Buy valuation will be needed to determine the cost of the extra shares.

Help to Buy Surveyor

If you’re thinking about taking the Help to Buy Scheme and you want to safeguard your savings, it is highly recommended to get a valuer conduct a valuation. Our panel of valuers adhere to the following provisions:

the valuer should be formally qualified with the respected RICS qualification
valuers must work independently from estate agents.
the RICS-accredited surveyor must provide a formal report written on official letterhead, complete with his signature
the valuer should present at least three comparable properties, inclusive of their sale prices
the comparables given must match in terms of building type, foot print, age, within a two-mile radius from the subject
a thorough on site inspection of the property complemented by a valuation report that is suitably exhaustive.

Get in touch with our team today to find out the value of your London property by having an RICS-registered valuer conduct a valuation via Help to Buy.

Do You Need a Valuation for Help to Buy?

If you need to pay back or refinance your equity loan, you’ll need to get an accurate property RICS valuation. This is a valuation of the property’s market value, which then works out how much you should pay back. It must be accurate because the amount you owe is calculated by that property valuation.

What is Redemption in Help to Buy?

Redemption in Help to Buy (also known as Help to Buy repayment) means repaying the loan you borrowed from the government. The price you pay back depends on your property’s current market value. It must be done by an independent help to buy valuation. After that, you will need to send the valuation report to HCA (Homes and Communities Agency) who will administer the loan redemption procedure.

What is Equity in Help to Buy?

Equity is a measure of what portion of a property you truly own. When the value of your property goes up, the equity you hold in it rises also. The loan from the government, though, is related to a percentage. So, if the value of your property goes up or down, your repayment will change too.