Whilst not confined to just London, numerous developments have been sold over the past decade offering owners either the option to own a percentage of the property or to take out an equity loan against part of it. In either case, when the property is sold, the percentage which the leaseholder does not own or has a loan against will need to be valued in accordance with the RICS Red Book.
Help to Buy
The Government’s Help to Buy Loan Scheme has been running since April 2013 and is open to first-time buyers and home movers of new-build homes in England up to a purchase price of £600,000. The purchaser is lent up to 20% of the cost of the home leaving just a 5% deposit and a lender willing to offer a 75% mortgage.
This not only means that it is easier to raise the funds for a 5% deposit but lenders should also be able to offer more competitive rates than they otherwise would have. In good news for those inside the M25, 2015’s Autumn Statement increased the equity loan it gives new buyers within Greater London from 20% to 40%.
No interest is paid on the 20% (or 40%) loan for the first five years. In the sixth year a fee of 1.75% of the loan’s value is charged. After this, the fee will increase every year using the Retail Prices Index plus 1%.
The loan must be repaid to the Government after 25 years or when the home is sold. The amount that is paid back is determined by the valuation of the property at the time and the owner will require a Chartered Surveyor who is also an RICS Registered Valuer to produce an impartial report. Please email email@example.com or call 020 7183 2578.
One of the most well known and widely used surveying standards are technically named “Red Book” Valuations or RICS valuations. You may be asked to arrange for a Chartered Surveyor to undertake a Red book valuation by your solicitor for a range of purposes - Taxation, Probate, Matrimonial, Shared Ownership, Court ... Read More >>
The Leasehold Reform and Urban Development Act, 1993, establishes the valuation basis and legal framework for leaseholders to extend their lease (as well as enfranchise). The most common way to enact the Act, is to serve a Section 42 notice with the help of a specialist solicitor, but this does come with a raft of stipulations ... Read More >>
The increasingly dire chances for first time buyers to get on the property ladder in London are well documented in the press. Those that hoped the Brexit vote or even the triggering of article 50 would soften prices have not yet seen their hopes realised as the average asking price in London reached £636,777 in April 2017. ... Read More >>