The Help to Buy scheme is a Government backed initiative that offers an equity loan where the government lends first-time buyers in England money to buy a newly built home. This must be used to buy your main residence and can’t be used to buy a second home or a buy-to-let property. You will need a deposit of at least 5% of the purchase price. You can borrow 20% of the purchase price of the property and this amount is interest-free for five years. Throughout the UK there are different caps on the value of the property that the Help to Buy loan can be used with, in the North East region this value is £186,100.
How do we reach our valuation?
To reach a figure which reflects the true value of your home or property, we must inspect the property to find out the details that mainly affect the value. This means taking measurements, photographs, and site notes so that we can accurately find comparable properties in the local and surrounding area which have sold in the last 6 months or so. We use Rightmove SCT to find these comparable properties and this allows us to adjust based on any value increasing or decreasing characteristics. After this is complete, we will then formulate your report with all the necessary information from our inspection and show in detail how we reached our final valuation figure. This figure will always be within the adjusted range of the comparable properties which we believe are most suitable for comparison to your property.
Potential issues we may encounter.
Whilst carrying out the valuation, we may encounter issues which could affect the valuation figure. These issues range from structural defects to a lack of good comparable evidence to find a value which reflects the current market price of the property. In the case of lack of evidence, we would look further away from the subject property area to find a good comparable or possibly look further into the past to find similar property sales. If this is the case, we will adjust the valuation to reflect the new evidence. In the case of structural problems, this has the potential to significantly affect the value of the property. If severe structural problems are detected the property may need to undergo corrections before a lender is willing to offer a mortgage against it.