NOW REPLACED BY THE HELP TO BUY EQUITY LOAN REPAYMENT APPLICATION FORM. Target are the administrators charge by HMGov to deal with your redemption or pay back of your Help to Buy loan. The full process of each specific pay back process is now provided directly by HM GOV –
Moving forward with Help to Buy …..
“We have now updated our advice moving forward under the new administrators Homes England for your Help to Buy – please see here”
The form which you will be required to complete and send with your Help to Buy valuation is now the – Help to Buy Equity Loan Repayment Application Form – as below.
The form itself is self explanatory but there is some confusion in relation to the choices – if you are paying back your Help to Buy loan with your own funds or re-mortgage, you do need to provide a sale price figure in the box following. This is only provided if you have sold your property. If you have sold you must send a copy of your memorandum of sale with the application form and your Help to Buy valuation.
We as a firm of regulated surveyors specialise in providing the acceptable RICS Help to Buy valuation report for Target and The H.C.A and we have completed numerous valuations for both Target and previously HOPS. Over 8,000 in total.
The Home and Communities Agency (HCA) will liaise directly with your Solicitors regarding the redemption figures and your Solicitor will need to follow a process of repayment as and when your funds become available, either by sale, re-mortgage or repayment. If your original scheme involved a contribution from the housebuilder such as First Buy or HomeBuy, then the administrator will liaise with the builder regarding the valuation.
Our website provides detail of the processes which we recommend based upon the experience we have gained in specialising in Help to Buy valuation redemptions, but in brief we would recommend the following procedures.
- When selling a property do not have the valuation completed until such time as you have agreed an offer. This allows you to maximise the three month validity of the valuation itself.
- When considering a re-mortgage our suggestion would be that you make preliminary enquiries through your Independent Financial Adviser to confirm the options on offer and to consider the implications of any future valuation.
In many cases Financial Advisers and Lenders request that you carry out the valuation report at an early stage of the re-mortgage process. Our recommendation would be that your progress the re-mortgage principals as far as possible before commissioning your redemption valuation.
The valuation criteria from the HCA is quite specific and must be met for them to consider your redemption.
It is not possible to provide an Estate Agents valuation, a copy of a Lenders valuation and the valuation itself must show a detailed analysis of the comparables being considered to support the valuation. The HCA and the Developer, where applicable, will consider the higher of the value for the redemption figure. For example, if you have sold your property for £250,000 and the RICS valuation for redemption considers the value to be £260,000 then the HCA will accept the latter figure. If the RICS valuation for redemption is £240,000 then the HCA will consider the agreed sale price at £250,000.
We have undertaken numerous redemption valuations on a National basis and we have worked closely with the HCA to specifically devise a valuation report which is fully compliant. Our reports were considered “as excellent” by the previous Administrators of the scheme.
We have provided a number of scenarios which can be found on our website along with a selection of FAQ’s which will provide a helpful guide in deciding your timings and the specifics required for each individual scheme. Further information can be found at www.rjharmer.co.uk or you are welcome to discuss any matters raised within this article with us directly.
RJHarmer Ltd is a RICS Regulated Firm