Selling or staircasing Help to Buy properties
We have recently received several instructions from clients who purchased a Help to Buy property, writes Clive Scrivener, Founding Partner at Scrivener Tibbatts the Wimbledon based chartered surveyors.
Help to Buy which was first introduced in 2013 enabled first time buyers who perhaps did not have the means to mortgage a property outright to get on to the housing ladder.
Many of those first time buyers are now ready to move on, and buy another property, or to stay put and switch their mortgage agreement so they can own a larger proportion of their property, known as staircasing.
Whether you’re a buyer or a seller you will need a surveyor recognised by the government’s Help to Buy scheme to value your property for mortgage purchases. Scrivener Tibbatts is one such recognised firm.
If you sell the property against which your loan is secured, you will need to repay your loan in full. This is known as loan redemption.
The repayment amount you will be required to pay is calculated as a proportion (percentage) of either the current market value or the agreed sale price of your home (whichever is higher).
If you are staircasing in this scenario you will be looking to repay (redeem) your loan in part by taking out another loan secured on your property with another lender.
The reason it’s important to chose a Help to Buy authorised valuer is that, as those affected will be aware, some properties with issue related to cladding require a specialist valuer’s expertise to provide a report that will satisfy your mortgage company that an accurate valuation has been reached.
If you would like to discuss something related to a property valuation please contact Clive Scrivener, Partner, direct via email at firstname.lastname@example.org or call 020 8971 2983.