Help to Buy Wales: guidance on external cladding affected properties

You are receiving these Guidance Notes as our mutual customer has nominated you to complete a Market Valuation of a property where a Help to Buy Wales shared equity loan is held on the property.

You are required to provide a current Market Value (established in accordance with the current RICS valuation standards) of the property and to take into consideration the existence of any external cladding.

Under the terms of the Help to Buy Wales shared equity loan your appointment has been made by the current owner and occupier of the property in order to establish the current market valuation to enable the repayment of the shared equity loan.

Qualifications 

Valuer means an independent qualified valuer appointed by agreement between the parties or failing agreement by or on behalf of the President for the time being (or other designated officer) of the RICS on the application of either party, provided that in making his nomination the President shall select an independent surveyor qualified at least 10 years and specialising in and with experience in valuation of residential property in the vicinity of the Property 

Required Documents 

In advance of your valuation, you must obtain the following documents from the customer:

• A copy of a completed Form EWS1 (if available)
• A copy of the customers Lease of the Property
• Any estimates the customer has received regarding the costs of any remediation works;
• Evidence of the amount of service charge sinking fund; 
• Any documents in respect of the acceptance of a buildings insurance or Building Warranty claim
• Any documents in respect of any third party (such as the original developer) agreeing to pay for the costs of remediation.

Basis of Valuation 

You are required to provide a current Market Value (established in accordance with the current RICS valuation standards) of the property and to take into consideration the existence of any external cladding.

Market Value means the price (established in accordance with the RICS Valuation Standards) at which the sale of the Property would have been completed unconditionally for cash consideration on the date at which the Property is valued on an arm’s length.

When producing your valuation, you must also take into consideration both the existence of any external cladding and the required documents and their impacts on the market value of the Property.

You must also consider:

• the estimated costs of any remediation works, but only in cases where the costs of remediation have been set by a Fire Risk Assessor (FRA);
• responsibility for these costs, where this has already been defined;
• whether any claim for the remediation works have been accepted;
• whether the required funds are already available in the service charge sinking fund. 

The Valuation Report 

• You must inspect the interior of the Property and provide a full valuation report. 
• Market value (not for Mortgage purposes)
• Include Customer(s) Name(s)
• Property full address
• Inspection Date
• Minimum of 3 comparable sales of similar properties within the postcode area sold within last 6 months, like for like in terms of property type, size, and age (If not available please provide the best available and confirm this within the report)
• No conflict of interest/known to customer confirmed within report
• Signed (e-signature acceptable) including RICS Number
• Headed paper and provided in a non-editable document (PDF)