On this page
Why valuation matters with FHS
The First Home Scheme is linked to a percentage of your home, not just the euro amount you received on day one. That means property value matters when you redeem part or all of the FHS equity share.
If your home increases in value, buying back the same FHS percentage can cost more. If the value falls, the redemption amount can be lower. Service charges are separate and may also be payable depending on how long the equity share has remained in place.
| Situation | Why valuation is relevant |
|---|---|
| Partial redemption | The scheme needs a current value to calculate the euro cost of the percentage being bought back. |
| Full redemption | The final buy-back amount is based on the FHS share and the property value at that time. |
| Sale of the home | The equity share normally needs to be dealt with as part of the sale/closing process. |
| Self-build redemption | Site value can make the calculation more specialised, so official treatment must be confirmed. |
When an updated valuation is usually needed
- Within the first 6 months after drawdown — a new valuation may not be required for a redemption, but the official FHS process should still be checked.
- After 6 months — an updated valuation is usually needed for a partial or full redemption calculation.
- During a sale — the redemption position needs to be confirmed so the FHS share can be cleared correctly.
- For self-builds — the valuation approach can be more detailed because the site and completed home value may be treated separately.
- When FHS requests it — use the official process and approved valuer route, not a casual estate-agent estimate.
The official FHS valuation rules can change, so always confirm the exact requirement before paying for a valuation.
Who orders and pays for the valuation?
For FHS redemptions, the valuation should be carried out by an independent FHS-approved valuer. The customer normally orders and pays for the valuation. This is different from simply checking online estimates or asking a local agent for a rough opinion.
| Valuation type | Use it for FHS? | Comment |
|---|---|---|
| FHS-approved valuer report | Yes | This is the route to check for redemption calculations. |
| Mortgage valuation | Maybe not | A lender valuation is for the bank; confirm whether it is acceptable for FHS purposes. |
| Estate-agent estimate | No for final calculation | Useful for rough planning only. |
| Online house-price estimate | No | Too rough for a legal redemption calculation. |
Worked example — value increase changes the redemption amount
Mark bought a home for €350,000 and received €35,000 from FHS. That means the FHS equity share was 10%.
| Later valuation | FHS share | Estimated redemption before charges |
|---|---|---|
| €350,000 | 10% | €35,000 |
| €400,000 | 10% | €40,000 |
| €330,000 | 10% | €33,000 |
This is why FHS should not be treated like a fixed personal loan. The percentage may stay the same, while the euro amount changes with market value. Any accrued service charges are separate from the redemption value.
Valuation mistakes to avoid
- Using a property website estimate as if it is official. It may help with planning but not final FHS redemption.
- Forgetting the 6-month timing issue. After the early period, an updated valuation is usually needed for redemption.
- Ignoring service charges. Valuation estimates the equity share value; service charges are a separate amount.
- Leaving valuation until sale week. Delays can affect closing and solicitor timelines.
- Assuming self-build is treated exactly like a normal purchase. Site value and completed-home valuation can make self-build redemption more specialised.
Frequently asked questions
Why does FHS need a property valuation?
Because the equity facility is linked to a percentage of your home. When you redeem part or all of that share, the current market value helps calculate the euro amount.
Do I always need a new valuation to redeem FHS?
Not always. The official guidance distinguishes early redemptions from later redemptions. After the early period, an updated valuation is usually needed, so confirm with FHS before starting.
Who pays for the FHS valuation?
The customer normally orders and pays for the valuation through the required approved-valuer process.
How long is a valuation valid?
Official FHS guidance indicates updated valuations can have a validity period for redemption purposes. Check the current FHS process before relying on an older report.
Is service charge included in the valuation?
No. Valuation helps calculate the value of the equity share. Service charges are separate and may be added depending on how long the equity has been outstanding.
Can I use my lender valuation for FHS?
Do not assume so. A bank valuation and an FHS-approved valuation may have different purposes. Ask the scheme or your solicitor before relying on it.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.