Help to Buy Valuation in Mattishall

A Help to Buy valuation is a specific type of RICS Red Book valuation required by homeowners who received an equity loan under the Help to Buy scheme. The scheme, which ran from 2013 to 2023, allowed buyers to purchase a new build property with just a 5% deposit, with the government providing an equity loan of up to 20% (or 40% in London). When you come to repay this loan, remortgage, or sell your property, the HCA requires an independent valuation from a RICS registered valuer to determine the current market value and calculate the amount you need to repay.

The valuation process follows strict RICS guidelines and uses comparable evidence from local property sales to determine your property's market value. Our valuers will inspect your property, review recent sales of similar properties in Mattishall and surrounding villages, and produce a formal valuation report that satisfies both the HCA requirements and mortgage lender criteria if you are remortgaging. We measure each room, note the property's condition, and assess any improvements you have made since purchasing through Help to Buy.

The recent 14% decrease in Mattishall property prices compared to the previous year means that some homeowners may benefit from the floor mechanism. Properties that were purchased at the 2022 peak of £369,889 may now be worth significantly less, and our valuers will carefully assess whether the current market value triggers the floor protection. This can be a substantial saving for homeowners in Mattishall who purchased during the market peak. We have seen several cases where the floor mechanism has significantly reduced the repayment amount for local Help to Buy homeowners.

House prices in the NR20 3 postcode area, which covers Mattishall and nearby villages including Welborne, Barford, and Intwood, grew by 0.7% in the last year, though this represents a -3.1% change after accounting for inflation. Understanding these local market conditions is essential for an accurate valuation, and our valuers bring this local expertise to every assessment. We monitor local sales data weekly and maintain relationships with local estate agents to ensure our valuations reflect the most current market conditions in the Breckland area.

• Repayment of Help to Buy equity loan
• Remortgaging to a standard mortgage
• Selling your Help to Buy property
• Porting your mortgage to a new property

When repaying your Help to Buy equity loan, the amount you pay is calculated based on the current market value of your property multiplied by the percentage of equity loan you received. For example, if you received a 20% equity loan and your property is now worth £323,260 (the current Mattishall average), your repayment would be £64,652. However, if your property has decreased in value below the original purchase price plus the cost of any improvements, the "floor" mechanism may apply, potentially reducing your repayment amount. This protection was built into the Help to Buy scheme to prevent homeowners from being trapped in properties worth less than they paid.

The recent 14% decrease in Mattishall property prices compared to the previous year means that some homeowners may benefit from the floor mechanism. Properties that were purchased at the 2022 peak of £369,889 may now be worth significantly less, and our valuers will carefully assess whether the current market value triggers the floor protection. This can be a substantial saving for homeowners in Mattishall who purchased during the market peak. We have seen cases where the floor mechanism has saved homeowners tens of thousands of pounds compared to the original loan percentage calculation.

If you are remortgaging from Help to Buy to a standard mortgage, you will need enough equity in your property to meet the lender's loan-to-value requirements. With average prices at £323,260 and typical Help to Buy loans representing 20% of the property value, you would need to ensure your circumstances allow for a standard mortgage approval. Our valuation report can be used by multiple mortgage lenders, giving you flexibility when shopping around for the best mortgage rates. We recommend speaking to a mortgage broker who can assess your eligibility before proceeding with the valuation.

It is worth remembering that if you sell your Help to Buy property, the HCA will take a percentage of the sale proceeds equivalent to their equity share, regardless of whether the property has increased or decreased in value. However, the floor mechanism still applies, meaning you will never pay back more than you originally borrowed if the property has fallen in value. Our valuers can provide you with the official valuation figure you need to calculate exactly what you will receive from the sale after repaying your equity loan.