Customers who currently have an equity loan with Thames Valley Housing can find information below about how to repay their loan. Please note that TVHA no longer offers equity loans and that this information only applies to current equity loan holders.
Repaying your Equity Loan
Repaying your equity loan is also sometimes referred to as “redeeming” your loan. You can repay your equity loan at any time. This can be done in either of two ways:
- By selling the property and paying back the equity loan upon sale completion, or;
- By raising funds, eg, remortgaging, to cover the additional cost you will need to repay the equity loan
Most equity loans can only be repaid in full, ie, the full percentage all in one single instance. One particular scheme called the MyChoiceHomeBuy scheme allows for part redemptions which means that you can repay your equity loan over a few of instances, at a minimum of 10% each time. You will incur costs for each instance you redeem, therefore it is in your interest to repay as much as you can afford to in as few instances as possible. If you pay an interest fee on your equity loan and you part-redeem your monthly interest payments will be adjusted accordingly.
* The loan remaining on the property after partial redemption can not be less than 10%
The amount you pay back when you redeem your loan is calculated on the current market value of your home. This means that if your property’s value has increased, you repay the share at the new market value.
How it works – three simple stages
An independent RICS surveyor (Royal Institution of Chartered Surveyors) must value your home. You will have to pay the cost of this valuation. Please note that valuations and any updates are valid for a period of three months and we do not accept estate agent valuations.
Once the valuation is received by us, we can calculate the amount owing to redeem the loan on the property which will be your % of the valuation (if you are not selling) or sale price, whichever is greater.
If you choose to proceed, you will need to tell us the contact details of the solicitors acting for you. All parties will then work together to agree a date for the redemption to complete. On completion and receipt of the monies we will remove our legal charge from your property title via the Land Registry.
Frequently Asked Questions
How is the redemption figure calculated?
The amount you have to pay back is based upon the market value of your home at the time you wish to repay your loan – not the original value from when you purchased the property. So, for example, if you are repaying a 25% loan and your property’s current value is £200,000, you would pay us an amount of £50,000. This means that if your home has increased in value since you purchased, you will need to repay the share at the new market value.
What costs will I be expected to pay?
In addition to the valuation fee and any additional fees associated with valuation updates, you will have to pay for your own solicitor’s costs and also an administration fee of £175 to us. There could be other costs relating to your mortgage that you could be responsible for and we advise you to check for these with your lender or solicitor.
How long is each valuation and subsequent update valid for?
Each valuation is valid for a period of three months.
What If I have made improvements to my property?
When you have your valuation carried out, please provide evidence to the surveyor of any improvements you have carried out.
What improvements does Thames Valley Housing accept?
- Installed central heating
- Double glazing
- New fitted kitchen or bathroom
- Adding a loft extension
- Adding a conservatory
- Adding a porch
- Adding a garage or car port
- Adding a driveway and dropped kerb
- Installing caving wall insulation
What improvements does Thames Valley Housing NOT accept?
- Redecorating your home internally or externally
- Floor coverings
- Fitted wardrobes
- New fencing
- Landscaping of gardens
- Replacing central heating boiler
- Rewiring or re-plumbing
- Any rendering to exterior of property
If you have any questions please call us on 0208 607 0550 or email firstname.lastname@example.org
You can read and download our guide on repaying your equity loan below: