Advice note 14 and HelptoBuy redemption

Wongus

Hello all,


Just wondering that giving the impact of advice note 14 and potential zero valuation of properties, whether anyone has considered or has managed to repay a HelptoBuy loan based on a zero valuation?

Swiftly

Did you manage to find anything out about this? I'm in a similar position as you where I had a buyer lined up for my flat but the building not being able to demonstrate compliance with advice note 14 is making it look like my buyer won't be able to get a mortgage so I'm trying to figure out what to do with it.

If the flat does have a current value of 0 then redeeming the equity loan is the obvious thing to do. The issue is that RICS valuation is a complete scam and none of them tell you how they'll treat the cladding issue upfront. On top of that Help to Buy have added the following sentence onto their website so I'm really not sure what to do:

If your property is affected by novel issues in relation to its valuation e.g. its external cladding, we reserve the right, in accordance with the terms of the equity loan, to agree the RICS Valuer you intend to use, with you, before you instruct them.

I'm guessing that the valuer that they choose to use won't value it at 0 otherwise Help to Buy will stop sending business their way despite every major mortgage company giving it a 0 valuation. Complete scam.

daveyjp

RICS valuation isn't a scam, up until very recently there was absolutely no agreed approach on how this should be dealt with.

RICS valuers work to a industry standards to ensure consistency of approach, without agreed guidance they can't value as insurance companies won't cover the risk.

This matter was resolved just before Christmas and an approach has been agreed.

https://www.rics.org/uk/news-insight/latest-news/fire-safety/new-industry-wide-process-agreed-for-valuation-of-high-rise-buildings/

Swiftly

I don't see how that is going to help, it still needs a fire safety assessment to be carried out which is the current bottleneck.

They need to come up with guidance on how properties without a fire safety assessment are valued.

Chavy89

With regards to the fire risk assessment they are very easy to get now google it and loads of companies come up they cost about £200 and once they have done can fill out the ews 1

Swiftly

Really? That's useful to know! Anyone have any experience with getting one done?

Chavy89

Getting a FRA is easy the firm I work for does them (not promoting it hence why didn’t mention my company name) but yeh like I said google it it’s normally takes a couple of hrs funny thing is I’m in the same position the cladding On the flat I’m trying to buy has been changed did FRA hopefully they accept the EWS1 form the problem is the bank I’m using (Halifax) might not accept the EWS1 so I’m in the strangest limbo