What Are RICS Valuations? Learn About Help To Buy, Shared Ownership & More

Are you looking to get the real worth of your house for a Help to Buy scheme, shared ownership, or just curious? RICS valuations are key in figuring out what your property is really worth.

Our article breaks down everything from how these assessments work to their impact on your next big property decision.

What are RICS Valuations?

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RICS Valuations come from experts called chartered surveyors. They figure out how much a property is worth.

What is a RICS Valuation?

RICS valuations play a crucial role in transactional activities related to properties. They provide an accurate market value that banks, building societies, and even homeowners can rely on for mortgage considerations.

By contrast, estate agents may set prices higher for more commission or to hasten the sale, whereas RICS surveyors adhere to strict guidelines. They need to present convincing evidence for their pricing, ensuring every valuation is just and extremely precise.

Utilising RICS valuations is greatly beneficial for schemes like Help to Buy or shared ownership deals. In such situations, determining the precise value of a property guarantees that buyers don't overpay and lenders understand the actual amount they're lending against.

It revolves around transparency in numbers - affirming that everyone receives a fair deal, be it your initial London flat purchase or an affordable housing venture. RICS valuations promote fairness and precision in property pricing.

Use of RICS Help to Buy Valuation and Shared Ownership

For Help to Buy or shared ownership homes, RICS valuations are key. They tell you the real market price of a home. This is vital for people wanting to sell their Help to Buy property, pay back their loan, or use Right to Buy.

An independent chartered surveyor checks out the home's true worth. If your valuation comes in high, you might owe more to the government or housing association.

These valuations help make remortgaging easier too. The government now lets mortgages stretch up to 35 years. This makes owning a home more affordable for many people. Next, we'll look into how these valuations are done.

RICS Valuation Process

Learning how RICS experts check a house is quite interesting. They look at the building, its size, where it is, and what condition it's in. Then, they compare it to other similar houses.

Assessment of property construction, size, location, and condition

The valuer takes a close look at how the house is built, its size, where it is, and what shape it's in. They check everything about the building to make sure their estimate makes sense.

This step matters a lot because it influences the final numbers in RICS house valuations. Look at things like how old the property is or if there are any big problems that could change its worth.

For every property they assess, chartered surveyors need to show clear proof for their decisions. They compare your home with others similar to yours—maybe in your area or similar places. This helps ensure you get a fair price whether you're thinking of help to buy schemes in Wales or shared ownership properties in London.

If there's something wrong that doesn't lower the value, they won't include it. But they'll tell you all this so you can see how they came up with their figure.

Comparison to similar properties

Valuers look at houses or flats similar to yours that have sold recently in the same area. This step is crucial for figuring out the true value of a place. It makes sure buyers and sellers can agree on a fair price.

Think of it like comparing different items before you buy – you want the best deal. Valuers use this method to set your property's price fairly.

This process uses information from places like Land Registry and estate agencies, which track house sales. Valuers then match your property against these records. They consider things like size, location, and how nice each place is.

So, if you're using Help to Buy or shared ownership schemes in cities like Manchester, Birmingham, Bristol or London, this comparison helps set the value of your home accurately.

Adherence to RICS valuation guidelines

RICS valuers follow strict rules from a guide called the 'Red Book'. This book makes sure their work shows what a property's real market value is. By using this guide, RICS valuations give confidence to buyers, sellers, and lenders that the price matches the true worth of a home or investment.

The guidelines help in making fair deals across the board. RICS valuations are about fairness and accuracy in the property world. Keeping to these guidelines means every valuation is backed by solid evidence like recent sale prices of similar properties. This approach prevents guesses or unfair pricing. It benefits everyone involved - whether you're buying your first home with help to buy London or sharing ownership in Bristol.

Validity Period & Renewal of RICS Valuations

Most RICS valuations last for 3 months from the report's date, after which period you'll need to get it done again to keep things up to date. This is key if you're dealing with properties, like help to buy homes in London or shared ownership flats. For those thinking of repaying help to buy or looking into options, timing matters.

How to get an RICS valuation renewed?

Your valuation tells lenders how much your place is worth now. If your time's almost up but you need more, there’s a fix. Get in touch within 2 weeks before your 3 months end. The valuer can add another 3 months after a quick desktop research check. This way, whether it’s help to buy Manchester or Bristol, you keep things moving without starting over.

Renewal process for expired valuations

Expired RICS valuations need updating if you're still pursuing your property objectives. The great news is that there's a method to do it without the necessity for another thorough survey. Here's the procedure:

Initially, contact the surveyor who conducted the original valuation. Accomplish this within 2 weeks of your valuation's expiration.
The surveyor can then perform desktop research. This implies they examine recent data without revisiting your house.
If all the information is in order, they can prolong your valuation's validity by an additional 3 months.
This refreshed valuation aids in keeping your Help to Buy or shared ownership schemes on course without the need to begin from the outset.

This approach is immensely helpful for meeting deadlines and managing budgets. Continuing, let's examine how RICS valuations affect you financially.

Impact of RICS Valuations

If your house gets a high RICS valuation, you might smile all the way to the bank, but if it's low, fixing issues or arguing over prices could be your next steps.

Financial implications of higher or lower valuations

A higher RICS valuation means you might owe more money to the government or a housing association. This is key for schemes like Help to Buy. If your house's value goes up, so does the amount you have to pay back. The property price ties directly to what you make on those help-to-buy loans or shared ownership deals.

On the flip side, a lower valuation can cause trouble with getting a mortgage. Lenders look closely at these numbers before saying yes to your loan application. And now, with mortgages stretching up extensive periods—up to 35 years—it's more important than ever that your valuation matches expectations. Your home's value today shapes your financial decisions tomorrow.

Consideration of defects and structural condition

In a RICS valuation, experts take into account the building's general condition but do not perform an in-depth investigation. For this, you will need a HomeBuyer report or a Full Building Survey of the property. These reports give you a good idea of what state the house is in and often include how much it might be worth.

This way of looking at things helps people make smart choices when buying homes under schemes like Help to Buy or shared ownership. Knowing if there are major faults before you buy can save money and avoid surprises later on.

Plus, with accurate info on hand, both buyers and sellers can agree on fair prices based on real facts about the property’s health—not just guesses.

Conclusion

RICS valuations discover out what a property is really worth. They help with things like getting a loan for buying a house or deciding the price when selling one. These reports are very useful, especially if you're looking into schemes like Help to Buy or shared ownership.

Valuers follow strict rules to make sure everyone gets a fair deal, whether it's buying your first home or selling one you've lived in for years. So, getting this type of survey done means knowing the true value of your place, making big money decisions easier and clearer for everyone involved.

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