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What is a Help to Buy Valuation?

If you have purchased your property using the Help to Buy equity loan scheme then you will likely need a Help to Buy Valuation at some point. The Help to Buy scheme lends purchasers up to 20% of the cost of a newly built property with a 5% cash deposit and a mortgage to make up the remaining sum.

Following a property purchase, there are two scenarios where you may need a Help to Buy Valuation:

1) If you make voluntary part repayments (‘staircasing’ or a full repayment) of the Help to Buy equity loan. 

2) If you sell your property, and therefore pay off the full equity loan. 

The equity loan provider is entitled to a share of the change of market value at these points in time. The Help to Buy Valuation Report provides an opinion on the market value and is required by the equity loan provider. 

help to buy valuation model house and coins with calculator

What are the usual requirements for a

Help to Buy Valuation?

Different equity loan providers, such as Target HCA, Sovereign and Aspire, generally have similar requirements for a Help to Buy Valuation, e.g.: 

  • be completed by a Chartered Surveyor (MRICS) who should be a Registered Valuer with the Royal Institution of Chartered Surveyors (RICS).

  • the Valuer must be independent to an estate agent. 

  • the report must be on headed paper, signed by the RICS surveyor and addressed to the equity loan provider. 

  • the valuation report should provide at least 3 comparable properties and sale prices.  The comparables provided must be like for like in terms of property type, size, and age and within a given radius to the property that is being inspected. 

  • The Valuer must not be related or known to you.  

  • The Valuer must inspect the interior of the property and provide a full valuation report. 

  • Valuations carried out for bank or mortgage purposes are not acceptable. 

  • A copy of the valuation report must be supplied to the equity loan provider.

Leney Building Surveying Ltd meets these requirements and has carried out many Help to Buy Valuations across Cornwall and Devon ensuring that the valuation reports meet the requirements of the equity loan providers.

How long does a Help to Buy Valuation remain valid?

There is generally a three month period by which the valuation report should be used and a transaction completed.

After this time, equity loan providers generally allow a further desk top valuation (no further inspection required) to review comparables and the valuation and within six months of the original valuation.  Leney Building Surveying Ltd can provide desk top valuations for an additional fee should this occur. 

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