Help to Buy Valuation in CA19

A Help to Buy valuation is a specific type of property assessment required when you want to repay your equity loan, remortgage, or sell your property that was purchased under the Help to Buy Equity Loan scheme. Unlike a standard mortgage valuation, this must be carried out by a RICS qualified surveyor and follows the strict guidelines set out in the RICS Red Book (RICS Valuation - Global Standards). The scheme operated from 2013 until closing to new applicants on October 31, 2022, meaning many homeowners in CA19 are now reaching their five-year milestone and need this valuation to proceed with redemption.

The valuation involves a physical inspection of the property's interior and exterior, where our surveyor will assess the condition, size, and layout of your home. We will also research comparable properties that have sold in your local area to determine an accurate market value. For properties in CA19, our local knowledge of the Cumbrian market helps us find appropriate comparable sales, particularly important in a rural area where transaction volumes may be lower and where different sub-postcode areas have shown varying performance - some showing 48% growth since 2010 while others have seen 65% declines from their 2023 peaks.

The final report is addressed to Homes England and includes at least three comparable properties with their sale prices. This report is typically valid for three months, so it is important to coordinate the valuation timing with your planned repayment or remortgage date. If your transaction is delayed beyond this period, a new valuation may be required. We strongly recommend timing your valuation carefully to avoid additional costs, particularly given the current market conditions in CA19 where property values have been subject to significant adjustment.

• Physical property inspection
• Market value assessment
• RICS Red Book compliance
• Report addressed to Homes England
• Minimum three comparable properties

When you purchased your property using the Help to Buy Equity Loan scheme, you borrowed up to 20% of the property's value (or up to 40% in London) from Homes England. The amount you repay is calculated as the same percentage of the property's current market value, not the original purchase price. This means if your property has increased in value, your repayment amount will be higher, but if it has decreased, you may repay less than the original loan amount - though decreases may affect your ability to remortgage.

For properties in CA19, where average prices have experienced significant changes in recent years, getting an accurate current market valuation is essential. Our RICS surveyors will provide you with a comprehensive assessment that reflects the true current value of your property. This is particularly important given the variation in property prices across different parts of the CA19 postcode, from coastal properties to those in the more remote valley locations. The current market conditions, with prices 41% down from the 2023 peak, mean that many homeowners may find their repayment amount is lower than they initially anticipated.

The valuation report we provide can also be useful information to have even if you are not immediately looking to repay your loan. Understanding your property's current market value helps you plan for future repayment and potentially benefit from any increase in your property's worth. Many homeowners in CA19 are approaching their five-year milestone since purchasing under Help to Buy, making now the ideal time to understand your options and prepare for either repayment or continued renting.

The Help to Buy Equity Loan scheme was launched in 2013 and ran until October 2022, helping thousands of buyers get onto the property ladder with a government loan covering part of the purchase price. Under the scheme, eligible buyers could purchase new-build properties with a government equity loan of up to 20% of the property value (or up to 40% in London), with buyers needing only a 5% deposit. The loan was interest-free for the first five years, after which fees applied.

Once the five-year minimum rental period ends, homeowners can choose to repay the equity loan, typically by remortgaging onto a standard mortgage product. The repayment amount is based on the property's market value at the time of redemption, calculated as the same percentage originally borrowed. For example, if you borrowed 20% and your property is now worth £200,000, you would repay £40,000 regardless of your original purchase price.

If your property has decreased in value since purchase, the repayment amount would reflect the lower current market value. However, a significant decrease in value may affect your ability to remortgage, as lenders typically have minimum loan-to-value ratios. Our surveyors in CA19 can provide you with an accurate current valuation to help you understand your position and options before proceeding with redemption.