If you're part of the Help to Buy scheme and considering selling your home or repaying your equity loan, one of the essential steps you'll need to take is obtaining a Help To Buy survey conducted by a RICS-registered surveyor.
This survey is crucial in determining the current market value of your property, which in turn affects how much you will repay on your equity loan. Here’s everything you need to know about Help To Buy surveys:
What is a Help To Buy Survey?
A Help To Buy survey is a RICS valuation; a detailed report that assesses the current market value of a property under the Help To Buy scheme. This survey must be carried out by a surveyor who is registered with the Royal Institution of Chartered Surveyors (RICS). The valuation is used to calculate the repayment of the equity loan when a homeowner decides to sell the property or pay off the equity loan without a sale.
When Do You Need a Help To Buy Survey?
You will need a Help To Buy survey in the following situations:
Selling Your Home: If you are selling your home purchased through the Help To Buy scheme, a survey is required to determine the value of the property. The sale price, along with the survey, will determine how much of the equity loan you will need to repay.
Repaying the Equity Loan: If you choose to repay your equity loan without selling your home, perhaps because of a remortgage or using savings, you still need to establish the current market value of the property with a Help To Buy survey. This ensures that the repayment amount is fair and based on the latest property value.
How is a Help To Buy Survey Conducted?
The survey process involves a RICS-registered surveyor visiting your property and performing a comprehensive assessment. Here are the key components typically examined during the survey:
Physical Inspection: The surveyor physically inspects the property, assessing its condition, size, location, and any improvements or damages since the purchase.
Market Analysis: The surveyor evaluates the current market conditions in the area, comparing similar properties to establish an accurate valuation.
Report Preparation: The surveyor compiles their findings into a detailed valuation report. This report is then used by the homeowner and the Help to Buy agent to determine the repayment amount for the equity loan.
Why is a Help To Buy Survey Important?
Obtaining a Help To Buy survey is not only a requirement for those looking to sell or repay their equity loan, it's also a critical step in ensuring financial fairness. The survey provides a transparent, market-based value of your property, which is essential in calculating the equity loan repayment. It protects both the homeowner and the lender by basing the loan repayment on accurate, up-to-date information.
Finding a RICS-Registered Surveyor
It’s important to choose a qualified and experienced RICS-registered surveyor for your Help To Buy survey. Look for surveying services that specialize in Help To Buy schemes and have a good track record in providing accurate and timely valuation reports.
A Help To Buy survey is a vital component of managing your Help To Buy equity loan, whether you are planning to sell your home or repay the loan while staying put. Understanding the process and importance of these surveys can help you navigate your obligations under the Help To Buy scheme more confidently and effectively.
To book your Help to Buy valuation with us, or to see what other survey types might be right for you, visit out Home Surveys page, or get in touch!
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