Help to Buy Valuation

A Help to Buy Valuation is used for assessing the value of a property bought with the help-to-buy scheme. With an independent RICS registered valuer, the valuation is needed when you are looking to repay the Government backed loan, remortgage or sell the property. The valuation provides an independent valuation of the property, as required by the government appointed administrator. From this valuation, the administrator of the loan can calculate what needs to be settled to pay back the loan.

The help to buy scheme is a government-led initiative aimed at helping property hunters – particularly first-time buyers – purchase a home without the huge financial burden.

Provided you have a 5% deposit and meet the criteria to apply, you’ll apply for a mortgage to cover as little as 55% of the property’s total price and borrow the remaining 40% (20% maximum outside of London) from the government. The government’s loan is interest-free for the first five years.

When you sell your home, the government will receive 40% of the equity. So, if you buy a property for £400,000 and sell it for £500,000, the government will receive £200,000 and you will get £300,000. You will need to pay off your mortgage with your share of the profits.

Thanks to Help to Buy, people aspiring to move to or relocate in London can purchase a new-build home with just a 5% deposit, and the government will loan up to 40% of the total purchase price. The scheme is helping thousands of new homebuyers purchase their first property without risking all their savings – could it be what you need to make your home ownership dreams a reality?

It’s worth noting that while the Help to Buy scheme has many benefits, it’s not the government’s responsibility to ensure the property you purchase is defect-free. Even new-builds are often rife with costly defects, so if you want to know you’re investing wisely, it’s best to obtain a snagging list from a Chartered Surveyor before making an offer.

Homeowners looking to relocate and first-time buyers can apply for a Help to Buy equity loan for a new-build London property worth up to £600,000. You can’t own any property when applying for a Help to Buy loan, nor can you sublet the property you purchase under the scheme.

Help to Buy is only available in England, and separate loan rules and criteria apply to regions outside of London. There are similar schemes in Scotland, Wales and Northern Ireland administered by the devolved governments.

How to Apply for Help to Buy

The Government-appointed Help to Buy London agent can guide you the process of applying for a Help to Buy equity loan, from handling your application to providing general property advice. Find more information by visiting helptobuylondon.co.uk or calling 0300 5000996.