What is Help to Buy?
Help to Buy loans were introduced by the government in 2013 as a way of helping people get onto the property ladder. It is a shared equity scheme where first time buyers can borrow up to 20% of the cost of a new build house outside London, and 40% in London. It is important to note it is only available on new build properties.
If you bought a home using the Help to Buy scheme, then the loan is interest free for the first 5 years. After which interest is payable. The full loan must be repaid after 25 years. You can choose to repay the loan whenever it suits you either by remortgaging or when you sell the property.
When will I need a Help to Buy Valuation?
When you decide to sell, or if at any time you wish to redeem the loan. The amount you repay will be calculated on the basis of a current market valuation not the original price paid. So, if the value of your property has decreased then the amount you must repay will be less than originally borrowed. However, if the value has increased then so will the amount you must repay.
Once you have your RICS Valuation then you send it to Target who will calculate how much you need to redeem the loan.
It’s important to note that all valuations carried out for this purpose are only valid for 3 months (this does not give homeowners very long to complete the necessary paperwork). However, after the 3 month expiry, the valuation can be renewed as a desktop valuation.
At Donald Leslie & Co we have 25 years’ experience of the property markets in the Buckinghamshire and Hertfordshire areas. We can cover any Help to Buy bought property within a 25-mile radius of our Amersham office, including Hemel Hempstead, Aylesbury, High Wycombe, Watford, Maidenhead, Windsor, Slough, and St Albans. We can also survey properties in Gerrards Cross, Beaconsfield, Rickmansworth, Chorleywood, Princes Risborough, Thame, Chesham, Berkhamsted, Tring, Harrow, Pinner, and Uxbridge plus all the villages in between. And we frequently also travel to parts of North, West and Central London.
We have carried out many hundreds of valuations all of which have been accepted by Target. Please contact us and we’ll be happy to chat through the process with you.