BLOG: Selling with ‘Help to Buy’? Don’t forget your RICS Valuation!
It’s been 5 years since the Government launched the ‘Help to Buy’ scheme, which aims to assist first time buyers and those struggling to raise a deposit.
Eligible buyers can apply for an equity loan towards the deposit, whilst only having to raise 5% of the property purchase price themselves. Plenty of buyers took the government up on the offer and the scheme has proved popular. Five years down the line, many buyers are now looking to pay off their equity loans but are often not well informed on how the repayment process works.
Those in receipt of an equity loan will either repay it when they come to sell their property, or can opt to repay the loan sooner. In either case, the homeowner will need to instruct for an RICS Valuation to be carried out on the property. This valuation is then used to calculate the final settlement.
Naturally, homeowners and indeed conveyancers are not yet familiar with the repayment procedure and this has left many homeowners desperately trying to arrange the repayment at the last minute before they can complete on their sales.
The Lea Hough Valuation team have been busy undertaking an increasing amount of these Help to Buy Valuations over the last few weeks.
One homeowner rang us in tears when she discovered last minute that she needed an RICS Valuation before exchange of contracts on Friday! Fortunately we were able to accommodate her and turn the report around within 48 hours of her phone call.
‘Help to Buy’ Homeowners looking to sell their property should be mindful of the repayment procedure and arrange their RICS Valuation in good time if they are looking to sell.
Perhaps even more importantly, conveyancers should look to inform and guide their clients on the repayment process and need for a valuation. These clients have usually never sold a property before, and rely heavily on their advisors for guidance. Proactively assisting clients through this process is an excellent way for conveyancers and solicitors to add value.
If you require a ‘Help to Buy’ RICS Valuation within the Lancashire area for yourself or for a client, contact the Lea Hough Valuation team today.
Blog by James Leech, AssocRICSBACK TO NEWS