Help to buy valuation

Hickmanyada

I bought a house with help to buy 2 years ago. I am looking to sell it and buy a new property. Speaking with an estate agent today, they said that in their experience, when selling, it will not be able to sell for over the valuation price.

I understand that after I have an offer I need to get the house valued independently. This then goes to htb. I thought htb would then take 20% of whichever is greater. The estate agent today suggested that htb would instead instruct the sale to complete at the valuation figure.

Has anyone done this before that can help. And are there other things I should be putting in place to help smooth the sale?

da_rule

It can sell for over the valuation price (you would just pay back 20% of the higher amount). The issue only comes if you needed a 'quick sale' and were minded to accept a below market value offer.

Hickmanyada

I assumed it could sell over the valuation price, and this is what it states on the help to buy website. Also makes sense for htb to take 20% of the bigger value. Only thing would be the buyer may need to cover the difference. But this is true of any property.

Just the estate agent said in their experience that wasn't the case. They had deals fall through due to it.

Maybe they were just trying to sell me their expertise.

kingstreet

When redeeming an HTB loan by remortgaging, the HTB Agent always takes the RICS valuation figure you obtain and it does not see the valuation done by your new lender's surveyor.

When redeeming by sale, it sees your RICS valuation and the sale price and calculates the redemption based on the higher of the two figures.

Contact Target and ask them yourself, if you have a mind;-

http://www.myfirsthome.org.uk/

1. Redeem: Repaying your loan when selling your property

If you sell the property against which your loan is secured, you will need to repay your loan in full. This is also 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).

For example, if your loan at outset was 30% of the purchase price, with no part redemptions (staircasing) having taken place, the amount you will have to pay back will be 30% of either the current market value or the agreed sale price of your property (whichever is higher).

Crashy_Time

HTB wasn`t put in place to help you get a high price for your house, it was put in place to get your money/debt into a collapsing market, and help the banks/developers.

melissa1709

We are currently in the same situation.

Bought through 'First Buy' which I believe is the old help to buy scheme, 5 years ago. Had an offer on our property which is at market value (unfortunately our house hasn't gone up in price since we purchased so we're not making a great deal but atleast were not losing money).

You need to get a RICS surveyor out to value the property and send the report off to help to buy. They don't really care what you sell for and can't determine it - they just want 20% of whatever you have sold for.

Our issue is the mortgage valuation which has been instructed by our lenders bank. We are concerned they may under value the property - which can determine what you sell for. If they down value, they don't lend your buyer the funds. So only option is to drop price which if your in the same situation as us, really isn't an option due to most of the equity being paid back to help to buy!

Hopefully all will go ok as we have an offer at what the estate agents valued, however a house a couple doors down which is identical sold for 20k less (repossession though, hoping they take this into consideration). It's probably worth having a look what properties in your area are selling for and determining the value that way.

But with regards to help to buy, you have no worries aslong as you can afford to pay 20% of whatever you sell for back to them.

Good luck!