Help to Buy Valuations Stockport

How does it work?

The first stage is to obtain a valuation of your property. To produce a redemption figure for redeeming your loan, you need to provide a valuation for your property that has been conducted by a RICS (Royal Institute of Chartered Surveyors) Certified Surveyor.

Once a RICS Valuation Report has been produced, it should be sent to Target.

It is important to note that this valuation will only be valid for 3 months. If your loan redemption is not completed within 3 months of this date, you will need to provide Target with a Desktop Valuation, re-confirming your property value. You must complete your transaction within a maximum of 6 months of the original valuation.

You will need to provide your surveyor with a copy of the full valuation requirement list. This can be found on the Target website.

Once you have successfully submitted your valid valuation report you will receive an estimated repayment quote. This will include details of any arrears and your daily interest payment rate allowing your solicitor to calculate an accurate final repayment sum.

NB. Where you are repaying the loan and remaining in the property the repayment figure is set using the determined market value. In addition, you must also clear any arrears on the account prior to obtaining approval to start the process. You will be required to pay any interest payments due from the last payment made to the agreed completion date.

In the case of a house sale the repayment sum is based on the market valuation or the sales price (whichever is the highest of the two). You must be able to clear any arrears on the account by the defined completion date or liaise with Target directly to make payment arrangements. You will be required to pay any interest payments due from the last payment made to the agreed completion date.

The next stage is to instruct a solicitor to undertake the required legal conveyancing. The following website may assist you in selecting a Solicitor: www.lawsociety.org.uk

Commence the Redemption Process. You need to complete a Loan Redemption Form and return it to Target together with payment of a £200 administration fee. NB. Target will provide a form for a redemption via house sale (Form A) or a redemption without house sale (Form B) House sale. Any outstanding interest payments prior to completion must be cleared and this is your responsibility. Completion will not be granted until this is done, or an interest payment shortfall agreement is in place. Staircasing – prior to beginning the process, all arrears must be cleared.

Redemption Letter Process. Upon receipt of your loan redemption form, fee and valuation Target will provide a redemption letter. This will be sent to both yourself and your solicitor. 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.

The redemption letter will include your estimated repayment figure based on the valuation. An explanation of how the redemption figure is reached for a sale and staircasing scenario is set out below.

If you are redeeming through the sale of your house the letter will also include any arrears to be cleared and an indication of your interest payment daily rate to enable your solicitor to calculate any interest due from your last payment to your expected completion date. Full details will be issued to your solicitor in the guidance pack; however, you must be aware of the requirement for a legal undertaking to be submitted to Target 15 business days prior to any set completion date.

Redemption without Selling Your Property. In this case, the market value used to calculate your Redemption Figure will be the figure provided in the RICS Valuation Report for your property.

Redemption with the Sale of Your Property. In this case, the market value used to calculate your Redemption Figure will be the figure provided in the RICS Valuation Report or the Sales Price (whichever is the higher of the two).

Ready to Complete – Undertaking. At least 15 working days prior to the expected completion date, your solicitor must provide a legal undertaking to Target by email. It is important to note that if the completion date stated on the legal undertaking does not take place and is delayed by more than one week a new solicitor undertaking is required and new redemption figure confirmed. Where there are not sufficient funds to settle the interest payment you must engage with Target directly and either agree a payment to cover the shortfall or enter into an interest payment shortfall agreement. Target will not grant authority to complete until all monies due to the agency have been settled or agreement reached on clearing the sum after completion.

ATC (Authority to Complete). Within 5 days of receipt of the undertaking (or on completion of confirming any additional payment arrangements) the Authority to Complete will be issued by Target. You can then complete your transaction.

Finally, the Completion. Your solicitor is responsible for sending through the correct redemption monies to Target. On receipt of cash the amount will be validated against the figures stated on the Authority to Complete, and if the amount received matches the ATC one of the following actions will take place:
1. In the case of stair-casing (redeeming without a house sale), a memorandum of stair-casing will be issued stating the remaining equity mortgage percentage.
2. In the case of repayment from a house sale, an e-DS1 will be issued to Land Registry to release the Homes and Communities Agency’s charge and confirmation of such will be issued by Target.