RICS Valuation
To pay off the government’s Help to Buy equity loan, an RICS qualified and registered valuer will need to value your home.
Survey Hut have RICS qualified and registered valuers who can undertake help to buy valuations across Greater Manchester, Cheshire and Lancashire.
Find out the process for paying off your Help to Buy equity loan here.
How to Pay Off a Help to Buy Loan
Help to Buy is a government scheme first introduced in 2013 to help first time buyers get on the property ladder by putting in an equity stake of up to 40% of the purchase price. This meant buyers could put in as little as 5% and borrow the remainder through a mortgage.
Need more information? Visit the government’s Help to Buy website or click here for a Help to Buy Customer Information pack.
Frequently Asked Questions
After five years, interest is payable on the government’s Help to Buy equity stake, in addition to your normal mortgage payment.
The equity stake you pay back is based on the value of the property at the time of the repayment, not what the government initially put in. This means that if the property increases in value, you will not receive all of the worth – the government shares it with you.
The administrator of the government’s equity stake is Target HCA.
They can be emailed at [email protected]
Or, written to at: Target HCA, PO Box 911, Newport, NP20 9PA
There are three ways to pay off the Help to Buy equity loan:
- Using your own money
- When remortgaging the property
- When selling your home
You should start the process when you receive an offer for your property, or are close to confirming the sale.
Instruct a surveyor who is both RICS qualified and a registered valuer to value your property.
The valuation report should be compliant with Target HCA’s requirements – an experienced surveyor will know what is required.
The valuation will last for three months to allow the process to conclude. If it takes over three months, the surveying firm can extend it by up to 4 months by issuing a letter and undertaking a desktop valuation report.
You will need a conveyancing solicitor to help you with the process.
To find a solicitor, look at the Law Society website.
An administration fee of £200 is payable to Target HCA.
An application form will need to be completed.
You can find the application form here.
You will need to send the administrator the:
- RICS valuation report
- Completed application form
- Administration fee
- Copy of the memorandum of sale from the estate agent, if you are selling your home.
Once the above are received by the administrator, a redemption letter will be issued, confirming the percentage of equity loan you took out and how much the repayments will be.
There are a number of legal actions your solicitor and the administrator will need to perform to complete the process.
These include a Legal Undertaking Agreement being drafted by your solicitor, an Authority to Complete form being issued by the administrator to allow the sale or repayment process to complete, and payment of the outstanding funds. If you fully repay the equity loan, the administrator will apply to the Land Registry to remove the charge on your property.
Let Us Know What You Need!
We find a lot of customers like to speak on the phone to discuss their survey or valuation requirements, so an accurate quote can be given and an appropriate report can be undertaken.
