Help to Buy Redemption

dont_use_vistaprint

If you decide to sell before the 5 years, who is responsible for the valuation ? Isn't it about time everyone that had an equity loan is entitled to some compensation for mis-selling and over valuation or is it a bit early still ?

Pickles99

Hi, I'm looking to pay back my HTB scheme in a few months, I was wondering if someone could explain what is the process following the receipt of the redemption letter, TCA says "Your solicitor will also receive a guidance pack and a copy of the required form of legal undertaking to be submitted at
least 15 business days prior to completion" can someone explain what happens next, is it pretty straight forward or is there more paperwork required?

kingstreet

dont_use_vistaprint wrote: »

If you decide to sell before the 5 years, who is responsible for the valuation ? Isn't it about time everyone that had an equity loan is entitled to some compensation for mis-selling and over valuation or is it a bit early still ?

Same as after the five years. The borrower obtains a valuation report by RICS chartered surveyor.

Here, you can read for yourself;-

https://www.myfirsthome.org.uk/iwantto/redeem/

foxsocks

I'm looking to sell my house and redeem the loan in full.
At what point do I get the ball rolling in obtaining a RICS valuation? e.g.

• Before putting the house on the market
• When I accept an offer for the property

What order did you follow from wanting to sell through to completion?

richmus

foxsocks said:

I'm looking to sell my house and redeem the loan in full.
At what point do I get the ball rolling in obtaining a RICS valuation? e.g.

• Before putting the house on the market
• When I accept an offer for the property

What order did you follow from wanting to sell through to completion?

If you get a valuation (ensure it's independent of Target/HTA) from a RICS valuer make sure they know that you'd prefer a lower market offer, you're the customer and there is no reason why you shouldn't be able request this (they don't have to honour this of course). They need to know it's to redeem your HTB loan, most people aren't going to want to side with the government on this are my thoughts. My RICS valuation came in at £50,000 less than the estate agent! I was very pleased. 

If I'd waited for sale and it sells for the estate agents quote I'll lose out. If I go with the valuation from RICS and pay off before sale I'll save £10,000. My advice therefore is get rid of load ASAP and then sell. 

I will say that I am still in the process. I've sent off my RICS, paid ADMIN fee and provided docs. Followed this up with a call and I should receive info in post early next week (or so I am told)...

bucksbloke

Did you call up to pay the admin charge after you sent off the form. My experience with Target HCA was that they were very fast after that. 

StephanieW

richmus said:

If I'd waited for sale and it sells for the estate agents quote I'll lose out. If I go with the valuation from RICS and pay off before sale I'll save £10,000. My advice therefore is get rid of load ASAP and then sell. 

I was under the impression you paid a % of the market value or the sale price, whichever is higher?

We have just instructed estate agent to put on the market and I am dreading this process! I figured it was best to wait until ball is rolling a little with interest on the property and then get independent surveyor value to begin the Target HCA faff (I'm concerned the independent valuation will expire and need doing again if I do all of this straight away) 

PJBRFC

StephanieW said:

richmus said:

If I'd waited for sale and it sells for the estate agents quote I'll lose out. If I go with the valuation from RICS and pay off before sale I'll save £10,000. My advice therefore is get rid of load ASAP and then sell. 

I was under the impression you paid a % of the market value or the sale price, whichever is higher?

We have just instructed estate agent to put on the market and I am dreading this process! I figured it was best to wait until ball is rolling a little with interest on the property and then get independent surveyor value to begin the Target HCA faff (I'm concerned the independent valuation will expire and need doing again if I do all of this straight away) 

In case this is useful, we have just gone through this process. We accepted an offer on 6th December and the conveyancing took  a while. I had the surveyor come and value the property on 23rd December, but he held off writing the report until the week before last. I then sent it to Help to Buy on Saturday as advised by my solicitor, along with the redemption fee and form. I then called them yesterday and they actioned it over the phone right away and said I will have the redemption statement within 7 business days. As soon as we receive this my solicitor will file her undertaking, and then we can exchange.

The agent at Target HCA advised that if we need any stage of the process to be done quickly, we should just call and they will do it whilst on the phone. This seems to have worked so far. 

I would hold off getting your valuation report until you are quite far through the process, maybe ask your solicitor to advise you when to get it. 

kingstreet

StephanieW said:

richmus said:

If I'd waited for sale and it sells for the estate agents quote I'll lose out. If I go with the valuation from RICS and pay off before sale I'll save £10,000. My advice therefore is get rid of load ASAP and then sell. 

I was under the impression you paid a % of the market value or the sale price, whichever is higher?

We have just instructed estate agent to put on the market and I am dreading this process! I figured it was best to wait until ball is rolling a little with interest on the property and then get independent surveyor value to begin the Target HCA faff (I'm concerned the independent valuation will expire and need doing again if I do all of this straight away) 

It's the higher of the two on a sale. On a remortgage, it's surveyor's valuation only.

naqwi

Dear Expert,
I'm currently trying to redeem my help to Buy loan in partial by remortgaging. Target HCA own our loan.

We've had the new mortgage approved, and I have sent all the paperwork to Target with our independent RICS approved valuation. Last 5 months we are waiting for the signed Deed of Postponement from Target HCA, is this normal?
Has anyone been through this process? How long did it all take?

Thanks 
Best Regards
Naqwi