If you bought your home using the Help to Buy: Equity Loan scheme, you’ll need a formal RICS valuation when you come to pay back the equity loan — whether you’re selling, remortgaging or buying out the Government’s share. Here’s everything you need to know.
What Is a Help to Buy Valuation?
A Help to Buy valuation is a formal RICS Red Book assessment of your property’s current market value. Homes England uses this figure to calculate how much you owe on your equity loan — which represents the same percentage of the current value as it did when you purchased (typically 20% outside London, 40% in London).
When Do You Need One?
You need a formal RICS valuation when: selling your property and repaying the equity loan as part of the sale; remortgaging and wishing to pay off the equity loan at the same time; or “staircasing” — buying additional shares of your property to reduce the equity loan.
What Are the Rules?
Homes England requires the valuation to be carried out by a RICS Registered Valuer and to be no more than three months old at the point of redemption. The valuation must be of the open market value of the property in its current condition.
Can You Challenge the Valuation?
Yes. If you believe the valuation is too high, you can commission a second RICS valuation from a different Registered Valuer within the three-month window. Homes England will accept the average of the two valuations if they differ by more than 5%.
How Much Does a Help to Buy Valuation Cost?
Help to Buy valuations typically cost £200–£350 for a standard property. Always use a RICS Registered Valuer — not just any RICS member — and confirm they are familiar with the Help to Buy scheme’s requirements.