Posted on 14th June, 2021
Help To Buy Valuations for Target HCA
Our RICS Help to Buy Valuation Reports fulfil the strict criteria required by Target HCA for the redemption of your Help to Buy loan. We have now carried out hundreds of RICS Help to Buy valuations and make sure that our reports meet the requirements. Once you have successfully submitted a valid Help to Buy valuation report Target will provide you with an estimated repayment amount.
What is involved with a Help to Buy valuation?
Once you have completed and signed our terms of engagement, we will book an appointment to inspect your property – we take measurements, relevant site notes and photographs. When we return to our offices, we will research the values of similar property and take into account relevant market conditions.
How long does it take?
We will arrange an inspection appointment as soon as possible. The inspection itself will probably take no more than about half an hour. We then aim to get the report out to you as a PDF attachment to an email within 3 working days. You can then forward this email to Target HCA.
How long is it valid for?
The initial valuation report is valid for a period of 3 months. At the end of 3 months, if an extension is required, Target will accept a simple letter from us, but it must be provided to them within 2 weeks of the end of the initial 3 month deadline. We provide the extension letter to you free of charge. If you miss this deadline then it is possible that Target will insist on an updated report which can be done on a desktop basis but there will be an extra charge. After 6 months, Target are likely to insist on a whole new report and we would have to reinspect the property at further cost to you.
Why You May Need a Help to Buy Valuation Report
When it comes to paying back your equity loan you have the option of Full Redemption (paying back 100% of the loan) or Partial Redemption (also known as Staircasing, where you pay back a percentage of the loan). Target HCA have published a Customer Information Pack which provides full details on the process and documentation needed for these two options.
Redeem when you sell – If you sell the property, Target will require you to repay your loan in full. The repayment amount you will have to pay is calculated as a proportion of either the current market value or the agreed sale price of your home; whichever is higher.
Staircasing or Full Redemption without selling – If you wish to keep the property then you can either repay your loan in full or in part. This is typically achieved by remortgaging the property but can also be done with cash if you have it. The repayment amount you will be required to pay is calculated as a proportion of the current market value.