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RICS Help To Buy Valuation
In what circumstances will I need a Help To Buy valuation?
If you purchased your property using the government’s Help To Buy scheme then, when you come to sell, remortgage or want to repay your Help To Buy loan, you will need to obtain a valuation report in the correct form from a RICS Registered Valuer.
When should I get my Help To Buy valuation?
Because a Help To Buy valuation only lasts for three months, you should try to time the valuation so that the valuation date is no more than three months before the point you expect to complete your sale or remortgage. In the event that the valuation expires, you can obtain an updated ‘desktop valuation’ for a small additional fee.
What are the requirements for a Help To Buy valuation?
The requirements for a Help To Buy valuation are set out by Homes England. The key requirements are:
- The Valuer must be appropriately qualified and RICS registered
- The Valuer must be independent, not known to you, and not connected to an estate agent
- The Valuer must consider at least 3 appropriate comparable properties and sale prices.
- The Valuer must assess the interior of the property and provide a full valuation report.
- The valuation report must include certain information, be on company headed paper, be signed by the RICS surveyor and be addressed to Homes England.
What does redeeming my loan mean?
Redeeming your loan means that you will be paying it off, either by selling your property and paying it back from the proceeds of that sale, or buying the percentage of the property you do not currently own. In this situation, a Help To Buy valuation is required so that the amount you have to repay can be calculated.
What is staircasing?
Staircasing means that you are choosing to pay off a percentage of your Help to Buy equity loan so that you own more of your property than you did before. Even though you are not selling your property in this situation, a Help To Buy valuation is required so that the amount you have to repay can be calculated.
How much will the Help to Buy valuation cost?
The cost of a Help To Buy valuation depends on the size and features of the property but is typically between £289 and £349 (no VAT to pay). Please Contact Me to receive a fast, free, no-obligation quotation.
How long does a Help To Buy valuation inspection take?
The inspection entails an examination of the exterior and interior of the property and typically takes around 1 hour.
When will I receive my Help To Buy valuation report?
Obtaining the most up to date information on comparable properties can take time, and sometimes involves discussions with estate agents. As such, valuation reports are guaranteed to be delivered within 3 working days of the inspection. However, where comparable information is more readily available, reports can be delivered more quickly.
How long is a Help To Buy valuation valid for?
A Help To Buy valuation is valid for three months. That being the case, you should try to time the valuation so that the valuation date is no more than three months before the point you expect to complete your sale or remortgage. In the event that the valuation expires, you can obtain an updated ‘desktop valuation’ for a small additional fee.
What happens if my Help To Buy valuation expires?
If this happens then you can obtain a ‘desktop valuation’, but you must obtain this and send it to Target within two weeks of the first valuation expiring. A desktop valuation is an update to the original valuation which will either confirm the valuation has not changed or, where it has, will provide new comparables to evidence a new valuation. The desktop valuation is valid for a further three months. As the desktop valuation does not require a further visit to the property, it can be provided for a lower fee. My charge for a desktop valuation is 50% of the initial valuation fee.
Shared Ownership Valuation
In what circumstances will I need a Shared Ownership valuation?
A Shared Ownership Valuation is required if you bought a home using a shared ownership scheme and now wish to EITHER sell your share in the property OR purchase more shares in it (called ‘staircasing’).
When equity in a house is split, ownership is usually shared with a housing association. Different housing associations have slightly different rules when it comes to selling or buying a bigger share (‘staircasing’). However, most housing associations will require an independent valuation from a RICS Registered Valuer to ascertain the market value of the property. The market value is then used to set the sale price for the property (and the value of the respective shares) or, in the case of staircasing, the market valuation establishes the cost of purchasing more shares in the property.
How much will the Shared Ownership valuation cost?
The cost of a Shared Ownership valuation depends on the size and condition of the property but is typically between £299 and £399 (no VAT to pay). Please Contact Me to receive a fast, free, no-obligation quotation.
How long does a Shared Ownership valuation take?
The inspection entails an examination of the exterior and interior of the property and typically takes around 1 hour. Where a property is larger or in poor condition, the inspection may take longer.
When will I receive my Shared Ownership valuation report?
Obtaining the most up to date information on comparable properties can take time, and sometimes involves discussions with estate agents. As such, valuation reports are guaranteed to be delivered within 3 working days of the inspection. However, where comparable information is more readily available, reports can be delivered more quickly.
Right To Buy Valuation
In what circumstances will I need a Right To Buy valuation?
Council and housing association tenants who meet certain criteria are eligble for the Right To Buy scheme and have the option to buy their home and to get a discount on the purchase price. When you apply to your landlord under Right to Buy, they will send you an offer letter containing their valuation of the property. The letter will usually also include an overview of the property condition and any structural defects.
A Right to Buy valuation from an independent RICS Registered Valuer allows you to check if the landlord’s valuation is fair and accurate. The report can be used to challenge your landlord’s offer if the property has been over-valued. A Right to Buy valuation also contains a brief overview of any major property defects which enables you to check that the landlord’s valuation has been based on a correct understanding of the condition of the property.
However, it is important to remember that a Right to Buy Valuation only includes a brief overview of property condition. If you want more detail on the condition and structure of the property, including more detail on the maintenance and repairs that you will be responsible for after purchase, you may wish to consider commissioning a RICS Level 2 or Level 3 condition survey along with the valuation.
How much will a Right To Buy valuation cost?
The cost of a Right To Buy valuation depends on the type, size and condition of the property but is typically between £289 and £399 (no VAT to pay).
How long does a Right To Buy valuation inspection take?
The inspection entails an examination of the exterior and interior of the property and typically takes around 1 hour. Where a property is larger or in poor condition, the inspection may take longer.
When will I receive my Right To Buy valuation report?
Obtaining the most up to date information on comparable properties can take time, and sometimes involves discussions with estate agents. As such, valuation reports are guaranteed to be delivered within 3 working days of the inspection. However, where comparable information is more readily available, reports can be delivered more quickly.
Red Book Valuation
What is a Red Book valuation?
A Red Book valuation is a formal, evidence-based valuation. It can only be carried out by a RICS Registered Valuer. The valuation is created by carrying out desktop research, undertaking an inspection of the property and then producing a valuation report, with a valuation figure based on a hierarchy of evidence. At the top of that hierarchy of evidence is completed sales of similar properties in the same area, but other factors are also taken into account.
How is a Red Book valuation different to an estate agent’s valuation?
An estate agent’s valuation or ‘market appraisal’ is usually an aspirational valuation and is not as evidence-based as a Red Book valuation. That is why mortgage lenders require Red Book valuations in support of secured lending. Similarly, an estate agent’s valuation often cannot be used in support of legal proceedings or for tax calculations.
When do I need a Red Book valuation?
You will need a Red Book valuation if your purchase includes a mortgage. However, in this situation, your lender will arrange the valuation on your behalf using one of their approved firms. (Please note that, in these circumstances, it is still advisable to commission your own independent condition survey – see Survey FAQs above)
If you are not purchasing with a mortgage, you may still wish to commission a Red Book market valuation alongside your pre-purchase survey. This is a useful way of confirming that you are paying the correct price for your property, rather than simply the ‘asking price’.
A Red Book valuation is also helpful if you are selling a property to family or friends and want a reliable, evidence-based valuation on which to base the purchase price.
Red Book valuations are also required/advised for various other legal and administrative purposes. These include:
- Help To Buy (see FAQs above)
- Shared Ownership (see FAQs above)
- Right To Buy (see FAQs above)
- Probate and Inheritance Tax calculations
- Capital Gains Tax calculations
- New Land Registry title registrations
I am able to provide Red Book valuations for each of these situations.
What does a Red Book valuation cost?
Pricing is dependent on the age, size, condition and complexity of the property but costs typically range between £289 and £899 (no VAT to pay) for a standalone valuation report. Costs can be higher for exceptionally complex or unusual properties.
Does a Red Book valuation include a reinstatement cost?
A reinstatement cost calculation will provide you with the appropriate figure for bulding insurance purposes. The reinstatement cost of a property can be materially higher or lower than a market valuation.
The provision of a reinstatement cost is an optional add-on and can be included with a Red Book valuation for an additional fee.
How long does it take from booking a Red Book valuation to receiving the report?
Ordinarily, the inspection can be booked in within 1-2 weeks of your instruction. However, during busy periods, lead times can be longer.
Valuation reports are typically delivered within 3 working days of the inspection. However, on some occasions, reports may take longer if there is a need for any specialist post-inspection enquiries. Where this is the case, you will be kept fully informed.
Billing and Cancellation
Do you require payment in advance?
Yes, I request payment in advance. This is for two reasons. The first is that the work for a property inspection starts long before the actual inspection (contacting the vendor/agent, booking in the inspection, undertaking desktop research etc.). The second is that, as a small firm, it is costly to run a credit control system and chase up payments after completing work. By taking payment up front I can eradicate those costs and pass those savings onto my clients. Please note that, although I ask for payment in advance, I also offer a very straightforward cancellation / refund policy – see below.
What methods of payment do you accept?
I request that all invoices are paid by bank transfer. You will find the firm’s bank details on your invoice.
Can I cancel a survey or valuation after I have booked and paid for it, but before the inspection has taken place?
This situation can sometimes arise if a sale falls through or a chain collapses after a survey has been booked. In these circumstances, yes, you can cancel.
If no significant work has yet been undertaken preparing for the inspection then I will provide a 100% refund.
If the cancellation occurs very close to the inspection date and work has already been undertaken then I will provide a refund equivalent to 80% of the survey fee.
Can I cancel a survey or valuation after the inspection, but before I have been sent the report?
This can occasionally arise if a sale falls through or a chain collapses in the short time between my inspection and issuing the report.
Or, sometimes, a situation arises where I find something so significant on the inspection that, based on a post-inspection de-brief, you decide to pull out of your purchase and feel there is no point in receiving the full report.
In circumstances where a report has not yet been written, I will provide a refund of 30% of the survey fee.
Unfortunately, if a report has already been written at the point that you cancel then, with all work having been completed, I do not have any ability to offer a refund in that situation.
General
Which areas do you work in?
I undertake work across the whole of Norfolk. However, being based in the northern part of the county, a greater proportion of my assignments are in the council areas of Norwich, Broadland and North Norfolk .
Do you wear a suit?
Very rarely! Property inspections involve getting into lofts, basements and other areas than can be a bit grubby. For that reason, a suit is not very practical if you are going to undertake a proper, thorough inspection. For that reason, be a bit suspicious of any surveyor who turns up looking too smart!
Who are the RICS?
The Royal Institution of Chartered Surveyors (RICS) is the global professional body promoting and enforcing the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure. Only members of the RICS are permitting to deliver RICS survey products and only RICS Registered Valuers can provide Red Book valuations.
Are you a RICS regulated firm?
Yes, Stephen Michael Surveying Limited is regulated by the RICS. This means that the firm has made a commitment to work to RICS standards and I allow the RICS to verify that commitment through auditing and monitoring.
What is the RPSA?
The Residential Property Surveyors Association (RPSA) is a not-for-profit representative body for independent residential surveyors.
Are you insured?
Yes. Stephen Michael Surveying Limited maintains appropriate insurance cover for all work.
Do you operate a complaints procedure?
Yes, Stephen Michael Surveying Limited has a formal Complaints Handling Procedure (CHP). A copy of the CHP is available on request.
