Help to Buy and Shared Ownership Valuations
Specialist RICS Valuations for Government-Backed SchemesWhat are Help to Buy and Shared Ownership Valuations?
Help to buy and Shared Ownership require unique types of Valuations as they have a number of legal and regulatory requirements associated with them over and above the requirements of typical Valuations.
Our practising RICS Registered Valuers have provided Market Valuations on thousands of properties in London and the South East and have unrivalled experience of local property markets.
These requirements can be complex. Farrow & Gould surveyors have significant experience within both the Shared Ownership and Help to Buy marketplace and provide you with the expertise to ensure the Valuation you receive meets all the necessary requirements.
We will ensure that your Help to Buy or Shared Ownership property is valued in accordance with RICS Regulations and is Target HCA Compliant where necessary.
We undertake Help to Buy and Shared Ownership Valuations throughout Greater London and Surrey (our postcode coverage is displayed on the 'About us' page).
Help to Buy Explained
Help to Buy was a government backed scheme which was aimed at helping first time buyers enter the property market by providing an Equity Loan.
Help to Buy provided eligible buyers with an Equity Loan (also known as shared equity) of up to 20% of the value of a new build home (40% in London) so the buyer only needed to raise a 5% deposit, with a mortgage then making up the rest.
Our Valuations and Reports Meet All Requirements
The Valuer that will visit your property must be a RICS Registered Valuer and a RICS surveyor and have the local knowledge and expertise to provide an accurate Valuation and report that is Target HCA compliant.
In providing your Help to Buy Valuation there are a number of key requirements which our valuers need to meet:
- Our RICS valuer must not be known by or related to you
- We are independent to any Estate Agents
- We must provide a copy of the Help to Buy Valuation Report to you and to Target HCA
- The Help to Buy Valuation Report we produce must be on letter-headed paper addressed and posted to Target HCA and will be signed by the RICS surveyor with their credentials
- We provide 3 comparable properties with their sale prices and dates sold. These will be the same property type, size, and age as your property and within a 2 mile radius to meet requirements
Why Pay Back the Loan?
As the value of your home increases, so does the amount you will need to pay back. This means if the property market is following an upward trend, the amount you have to pay back will continue to increase.
The Help to Buy loan is only interest free for five years. After this period, an annual fee of 1.75% is payable on the outstanding loan and this fee will continue to increase each year with inflation.
How Does Increasing the Equity of Your Help to Buy Loan ('Staircasing') Work?
In London, the Help to Buy upper limit for the equity loan was 40%. This means most Help to Buy property owners can buy part or all of this 40%. Outside of London, the limit was 20%.
How Do I Start the Process?
You will need to contact Target HCA, the government assigned company in charge of administrative functions for Help to Buy which you can do via the Target HCA Customer Service Team on 0345 848 0235 or via email at: target.hca@targetgroup.com
If you are unsure if you need a Help to Buy Valuation Report you can speak to the Target HCA Customer Service Team.
Shared Ownership Explained
If you can't quite afford the mortgage for a home, Shared Ownership offers you an alternative route onto the property ladder by giving eligible purchasers the opportunity to buy a share in a new build or resale home.
Also referred to as part-buy part-rent, Shared Ownership allows buyers to purchase a share of a leasehold property; they will pay a mortgage on the share they own, and a below-market-value rent on the remainder. As the purchaser only needs a mortgage for the share they own, the amount of money required for a deposit is much lower compared to purchasing outright.
When you buy a home through shared ownership, you buy a share between 10% and 75% of the home's full market value, pay rent to the landlord for the share they own, and usually pay monthly ground rent and service charges.
Shared Ownership Eligibility
- You must be at least 18 years old
- Your maximum household income must not exceed £90,000 per annum in London or £80,000 in the rest of England
- You must be unable to purchase a suitable home to meet your housing needs on the open market
- You do not already own a home, or you will have sold your current home before you purchase through the Shared Ownership scheme
- You should have a deposit equalling to the amount required for the share that you are purchasing
- You must show that you are not in mortgage or rent arrears
- You must be able to demonstrate that you have a good credit history and can afford the regular payments involved with buying a home
Shared Ownership Valuations
Do you want to increase the Shared Ownership shares in your property? We undertake Shared Ownership Valuations throughout Greater London and Surrey (postcode coverage available on 'About us' page). We provide accurate and timely RICS Valuation Reports which are RICS, Target HCA and Housing Association compliant.
How Does 'Staircasing' Work?
Initially, a buyer would purchase a share of a property. Typically, this is between 25% and 75%.
If you want to increase your owned shares ('staircasing'), your monthly mortgage payments will increase and your rent paid to the provider will decrease. Once you've paid 100% of the shares back, you will no longer have rent payments.
Why Staircase?
As the value of your home increases, so does the amount you will need to pay back when you staircase. This means if the property market is following an upward trend, the amount you have to pay back will continue to increase.
Data on how prices have generally followed an upward trend within London can be viewed on the Government website.
Our Valuations and Reports Meet All Requirements
The Valuer that will visit your property must be a RICS Registered Valuer and a RICS surveyor and have the local knowledge and expertise to provide an accurate Valuation and report.
- Our RICS valuer must not be known by or related to you. We are independent to any Estate Agents, which is a key requirement
- We must provide a copy of the Shared Ownership Valuation Report to you and to the provider you pay rent to
- The Shared Ownership Valuation Report we produce must be on letter-headed paper addressed to the provider you pay rent to and will be signed by the RICS surveyor with their credentials
- A key requirement is that we must provide 3 comparable properties with their sale prices and dates sold. These will be the same property type, size, and age as your property and within a 2 mile radius
How Do I Start the Process?
You will need to contact your Housing Association who will provide advice on their specific processes and requirements.
Do You Need Independent Legal or Financial Advice?
If you are refinancing the increased share with a mortgage, you will need to obtain legal and financial advice. We are partnered with independent Solicitors and Mortgage Brokers who can help you with all your needs. If you would like to be referred to one of our partners, make an enquiry.