» Help to Buy Valuations

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Before looking at Help to Buy Valuations, and the role which RICS (Royal Institution of Chartered Surveyors) qualified chartered surveyors play in providing help to buy valuations, it’s probably worth explaining exactly what the Help to Buy scheme is and how it operates. In simple terms, the Help to Buy scheme is a government backed initiative which is designed to help first-time buyers in England purchase a new-build home and get onto the property ladder. The scheme takes the form of government-backed loans intended to provide finance for people who might otherwise struggle to fund a new-build home purchase.

Help to Buy Conditions

There are some conditions attached to the Help to Buy scheme and these include the following:

The property has to be your principle residence rather than a buy to let
You will have to be able to put up a deposit of 5% of the agreed sale or agreed purchase price of the property

The maximum amount available as a Help to Buy loan is capped at different amounts in different regions of the country, and the loan is under what is technically known as an equity loan scheme. This means that, unlike for bank or mortgage purposes, the mortgage lender doesn’t provide a set amount which then has to be paid back in full. Rather, the amount which you need to pay back when the equity loan is redeemed will depend upon the value of the property at that time. If the property has a higher value since the initial purchase, you will have to pay back more, while if it has decreased then the amount to be repaid will be less.

How Help to Buy works

The first thing to bear in mind when considering Help to Buy is that the builder you’re purchasing the new-build property from needs to be registered with the Help to Buy scheme. Other criteria include the following:

You need to be a first time buyer aged 18 years or more
The property has to be a new-build
The property must be the place where you will be living permanently following the purchase
You don’t currently own land or property anywhere and have never previously done so
You will not rent the property out

Funding levels

The maximum final purchase price of the property sale will vary depending upon what part of the country it is in, as will the amount of deposit required, with a minimum of 5%. The money will be loaned by either the government directly or a housing association and whoever lends the money will continue to own a percentage of the property until the Help to Buy loan has been repaid in full.

Help to Buy mortgage

As well as the deposit of 5% you will have to arrange a repayment mortgage of at least 25% of the property purchase price. You can then take out a Help to Buy Equity loan of between 5% and 20% of the purchase price – and this figure rises to 40%in London. It should be noted that these figures are given as examples and that the actual figures applying to a Right to Buy purchase and mortgage valuation may vary depending upon where it is located in the UK.

The Help to Buy Valuation

The Help to Buy Valuation is something which you’ll need to have carried out by RICS Qualified Chartered Surveyors if, at any point, you want to repay the loan or remortgage or sell the property. Help to buy valuations are vital because the repayment figure is dependent upon the original valuation of the property at the time rather than its original purchase price, and working with a fully qualified RICS surveyor – which is a recognised qualification – will guarantee that the Help to Buy new valuation you’re provided with is an accurate reflection of the current property value.

Legal requirement

The Help to Buy Equity loans are administered, on behalf of the government, by a private company called Target. It is a requirement of the company that anyone wishing to sell, repay or remortgage the property in question has to have it valued by an independent RICS certified surveyor. The same applies if you wish to part-pay the equity loan redemption, something which is referred to as staircasing. The reasons for this requirement are simple:

A Help to Buy Valuation carried out by a RICS Certified Surveyor will comply with RICS guidelines and codes and is therefore more likely to be accurate.
A RICS Certified Surveyor will also be covered by professional indemnity insurance in case mistakes are made or there is a claim of negligence.

The requirements of a Help to Buy valuation

A Help to Buy Valuation carried out by a RICS Certified Surveyor involves a more in-depth and detailed process than a standard market valuation carried out by a RICS certified surveyor. Once completed, a copy of any valuation reports will be supplied to you as the owner of the property and Target HCA as the company which is responsible for administering the Help to Buy loan and collecting any repayment amount.

Local expertise

The valuation needs to be completed by a local surveyor with in-depth knowledge of the local area and expertise in the field of Help to Buy valuations. The local knowledge is vitally important as, just with any standard valuation, the state of the local property market and the presence or otherwise of local amenities can have a huge impact on the final valuation of a property type.

Independent RICS Surveyor

The RICS Surveyor also has to be fully independent from any other parties involved with the transactions in question, including the lender, the estate agent, a financial adviser or conveyancing solicitor and any buyers and/or sellers. The Help to Buy Valuation inspection will cover the following areas:

A visual inspection of the interior and exterior of the house on the inspection date to identify any clear structural issues.
The size of the property will also be a factor. For survey and valuation purposes, the surveyor will use the RICS standard code of practice when noting the measurements for a property. Under this code the Gross Internal Area (GIA) measured is used for a flat, and the Gross External Area (GEA) measured is used for a house.
A like for like comparison with similar properties.
Research into the title of the property intended to discover any issues such as restrictions being put in place or conflicts of interest.
The overall condition of the property, whether it has been maintained and kept in good repair and the kind of repairs and renewals that might affect the overall value.
Details of things such as off-street parking and local amenities such as shops, schools and access to travel hubs.

Once the survey has gathered the information they need a report will be written and a copy sent to you as the owner of the property and to Target HCA (Homes and Communities Association).

What the Help to Buy Valuation Report will contain

General Information

On the first page of the RICS Valuation Report you will find general information pertaining to factors such as the location of the property, its overall size and the type of tenure – i.e. whether it is a freehold or leasehold property. This section of the RICS Valuation Report will also detail when the property is built and note whether it is of standard-construction or not, as well as listing any available data on the sales history of the property.

Properties nearby

In addition to this, the RICS Help to Buy Valuation Report may list the nearby properties to which your property was compared when reaching a valuation. Any comparison between the various properties in the RICS Help to Buy Valuation Report will be based on aspects such as the size of the properties, their condition, location and the fittings and features present. These are the Help to Buy Valuation Report details upon which the surveyor will decide whether the comparable properties would be expected to have a value which is higher, lower or similar to yours.

Market value

Finally, the Help to Buy valuation report will provide an assessment of the current state of the housing market in the local area and whether sale prices are static, rising or falling, before stating the estimated current market value they have arrived at, with any notes or evidence felt necessary to show how this current market value was determined.

Once it has been arrived at, a Help to Buy Valuation of this kind is valid for a period of 3 months.

Get in touch

If you’re in need of a Help to Buy Valuation for your property and are looking for RICS Surveyors near you, contact us today for a free quote. We specialise in building surveys and valuations and other RICS help and can carry out a professional inspection, so you can rest assured that the Help to Buy valuation we arrive at is a realistic reflection of the current value of your property.

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Frequently Asked Questions

Which areas do you offer services in?: We offer our surveying and valuation services across the whole of London.
What is the difference between a Level 2 Homebuyer Survey and a Level 3 Building Survey?: In simple terms, the Level 2 will be carried out on a traditionally constructed property in a good state of repair. The Level 3, on the other hand, is for older and larger properties which are in a state of disrepair, have been altered and extended and/or are in some way unusual in terms of construction. A Level 3 Building Survey will also be required if you are planning major work on the building.
What is covered by a Level 3 Building Survey?: A Level 3 involves a visual inspection of the property which is more in-depth then a Level 2 inspection. Where it is safe to do so, places such as lofts, basements and cellars will be visually inspected. Services to the property such as water and electricity will be noted as being present and, although they won’t be tested, they will be checked for normal operation, i.e. taps and switches turned on and off where safe and with the permission of the person living in the property. A report published following the survey will describe the condition of the property in objective terms, pointing out any defects and explaining how important they are. It will also describe the materials used when constructing various parts of the property, and it will detail the likely cause of any defects and the chance of there being defects hidden in areas which couldn’t be inspected.
Do you provide Level 1 Home Surveys?: Yes, we do provide a Level 1 Home Survey, which involves a physical inspection of the property and a report based on the inspection.

The surveyor will aim to describe the element in sufficient detail so that it can be properly identified. A clear and concise expression of the surveyor’s professional assessment of each element, describe the condition of the element that justifies the surveyor’s assessment, to help you gain an objective view of the property condition.
How long will it take to arrange a survey?: In most cases we’ll be able to arrange a survey to take place in the next few days.
Are your surveyors RICS qualified?: Everyone who carries out surveys for Crown Survey and Valuation is a fully qualified member of the Royal Institution of Chartered Surveyors (RICS).
What qualification will my surveyor have?: As a fully qualified RICS surveyor, the surveyor who comes to your home will have at least one of the following accreditations – AssocRICS, MRICS, or FRICS. If you like, you can check the qualifications of your surveyor on the official RICS website.
Do you send out trainee surveyors?: None of the surveyors we send out are trainees. They are all fully qualified and have the experience needed to carry out their work. Anyone coming to Crown Survey and Valuation can be certain that the inspection of their property and any report produced is delivered by a fully qualified RICS surveyor.
Does a Level 2 Homebuyer and Level 3 Building Survey automatically include a valuation?: We don’t include a valuation in these surveys as this would mean customers having to pay for a service which they don’t necessarily want. If a customer wants to have a valuation included as part of their survey we can discuss this when the survey is being arranged as an additional service.
Can you provide a sample of a report?: We’d be happy to provide any prospective customer with a sample copy of a report, so that they can see the high standard of the work we do. If you’d like a sample please contact us.
Do I need to contact the vendor or estate agent in order to arrange the survey?: When you come to Crown Survey and Valuation, we’ll handle all of the details such as booking the survey on your behalf and arranging the inspection.
When will I have to pay for the survey?: Payment can be taken at the time the booking is made, or when the reservation is provisionally confirmed. In all cases payment will need to be made prior to an appointment being officially confirmed.
Can I be with the surveyor as they carry out the survey?: In order for the surveyor to fully concentrate on the inspection without being distracted, we recommend our surveyors are left alone in order to ensure that they concentrate on the job at hand without ay distractions.
Do your surveyors carry identification?: Yes, our surveyors will be carrying a Crown Survey and Valuation ID card, which they will show to you when arriving at the property.
If I can find a cheaper quote, will Crown Survey and Valuation match that quote?: We like to feel that we offer the best possible value for money, and that a cheaper quote may come from a company that doesn’t provide a service of the same high standard. Although we’ll look at any other quotes we can’t guarantee to match them.
Can I reschedule or cancel an appointment?: We’re always happy to listen to requests for an appointment to be rearranged, and will reschedule to a different date free of charge before any actual inspection takes place. If you decide you no longer need an appointment and wish to cancel we will be happy to do so free of charge, provided we receive at least 24 hours’ notice prior to the original appointment date.
Will the surveyor be in touch after carrying out a survey?: In most cases, after carrying out a Level 2 Homebuyer or Level 3 Building Survey the surveyor will get in touch to discuss the main findings of the survey. This may not be immediately after the inspection itself, as the surveyor may have other commitments in their diary, but it will be as soon as reasonably possible.
How long will it take for me to receive a report after a survey has been carried out?: Most of our reports are with customers within 5 working days, and in some cases even faster.
How can I be sure that you will provide a good service?: Our years of experience and the expertise we bring to the task means that a good service is guaranteed.
How will I receive the report?: You will be sent a copy of the report electronically, via email.
What if I have a question about the report?: We’re happy to deal with any queries following the delivery of a report. Just get in touch with us via telephone on 020 4522 8366 or hello@crownsurveyors.co.uk
What if I need to complain?: We want our clients to be completely satisfied so we take any complaints very seriously. If you feel something isn’t right please email hello@crownsurveyors.co.uk with the details and we’ll look into it and do our best to put things right.