RICS Help to Buy – Wales Valuations

Registered RICS Valuers play a crucial role in the Help to Buy process.  Our Valuers at Jones Battye have a wealth of knowledge of the scheme in Wales and are here to help when you need a valuation for your Help to Buy home.

The Help to Buy – Wales scheme was originally introduced in 2013 to help more people onto the property ladder.  Originally intended to close for new applications in 2023, the scheme has been extended until March 2025. This blog outlines the key points of the Help to Buy scheme and explains more about the need for an independent RICS Registered Valuer when you come to sell your property, repay your government loan or need a valuation for probate or matrimonial dispute.

How It Works

The Help to Buy scheme supports the purchase of new homes from registered builders using a shared equity loan from the government and allows first time buyers and existing homeowners to move into a new build house with only a small 5% deposit. The rest is made up of a 20% shared equity loan from the government and a 75% mortgage.  Under the scheme extension rules, houses sold through the scheme after 1^st April 2023 must have a minimum EPC rating of B and a price cap of £300,000.

The shared equity loan is interest-free for the first 5 years, meaning that you are only making payments on the mortgage, but from the 6th year onwards you will be charged interest. The whole loan needs to be repaid within 25 years, or before if you sell the property but you are free to pay it off at any point during that period, either in its entirety or as a proportion. This buying back of the government share of the property is known as ‘staircasing’ the loan.

The Need for an RICS Registered Valuer

Under the terms of the scheme, if there are any changes to the ownership of the property or to your existing financial arrangements, such as ‘staircasing’ for example, you must instruct an independent RICS Registered Valuer to carry out a valuation and provide a current Market Value of the property. This independent valuation can then be used to calculate the current value of the shared equity. It is worth noting that you may end up paying more than you originally borrowed if the value of the property increases. This is because the amount of the shared equity loan as a percentage of the value of the property fluctuates and the government will receive their fair share of the property value increase. This also prevents people from participating in the scheme simply to make money from government support.

Our professional and independent valuers have a wealth of local knowledge and experience, and regularly supply valuation reports for the Help to Buy – Wales scheme. So, if and when the time comes for you to sell, repay your loan or re-finance your existing arrangements we are here to provide an accurate market valuation report which follows all the requirements of the scheme. That way the government will get an accurate return on their investment and as the homeowner you will know exactly what your property is worth – crucial if you are thinking of selling or if you are coming to the end of your 5-year interest-free period.

For further information on this and other valuation services that we provide, please see our website at www.jonesbattye.com or contact us for friendly advice on 01685 378894 (Aberdare) or 02920 625433 (Cardiff).