Mortgage Valuation Service

What is a mortgage appraisal?

A REGULATED VALUATION FOR MORTGAGE PURPOSES

The mortgage valuation is an appraisal to establish the value market of properties or rights that the interested party wishes to establish as guarantee for a mortgage loan.

The valuation report must be issued by a valuation company authorised by the Bank of Spain. It must observe the provisions of Spanish Order ECO/805/2003 of 27 March that require, among other things, a series of specific checks at the property. This means that no other appraisal, like for instance online valuations, will be accepted for a mortgage loan.

Article 14 of Spanish Law 5/2019 of 15 March that regulates real-estate credit agreements, generally known as the “Mortgage Law”, establishes the distribution of the mortgage expenses and specifies that the property valuation expenses correspond to the party who applies for a loan.

I need advice

Who needs a mortgage appraisal?

IF YOU ARE APPLYING FOR A MORTGAGE LOAN, YOU WILL NEED A MORTGAGE VALUATION.

The mortgage valuation is required when a natural or legal person applies for a loan and the agreement requires a property or right as guarantee within the framework of the current mortgage law.

Except for the assets excluded by Art. 11 of RD 716/2009 of 24 April, all other assets can be used as guarantee for mortgage loans or credits.
Assets excluded:

a) Usufructs.
b) Administrative concessions.
c) Surface rights that are under 20 years from the date foreseen for the final repayment of the mortgage loan or credit, and grazing, water, wood and other similar rights.
d) Properties and facilities located outside the town planning and land on which temporary building work has been authorised, under the terms foreseen for each case in the applicable laws on land and development, when this circumstance has been entered in the registry.

Documentation needed for a mortgage appraisal

The documents required are regulated in Art. 8 of Spanish Order ECO/805/2003 of 27 March and will depend on the characteristics and type of property, the occupancy status, its construction status and the valuation method, as well as the rights and restrictions on the property. Some of the documents we may need are:

  • Land registry statement issued within the last three months before the valuation date. Title Deed.
  • For properties under construction:
    • Technical project with seal of approval.
    • Building work permit.
    • Interim certificate issued by the Site Manager.
    • Building contract.
    • Quote by contractor.
  • For council houses: Rating certificate or document used to determine the Maximum Selling Price or Maximum Rent.
  • For new build properties: Proof of the taking out of a ten-year insurance against damages.
  • Rented properties:
    • Rental or subletting agreement.
    • Receipt of last rent paid.
  • Properties linked to a business: Properties that can only be used for a specific purpose (hotels, nursing homes, cinemas, hospitals, petrol stations, farms, etc.).
    • Income Statement.
    • Licences/permits for the business.
  • Rural property:
    • Cadastre documents.
    • Operating accounts.
    • Irrigation rights.
  • Urban or building land:
    • Urban development certificate or Local certificate that specifies its planning information.
  • Establishments, offices or warehouses under horizontal division:
    • Articles of Association the Home Owners’ Association or a similar document showing usage restrictions.

How to do a mortgage appraisal

EXPERIENCE, KNOWLEDGE AND TECHNOLOGY AT YOUR SERVICE

Our Gloval Valuation division is at your disposal for valuations and appraisals with many branches and over 1,100 local experts who master the local real-estate market.

01

Order

Please let us know your needs by filling in our form.
The process begins with the request for the appraisal, providing the client with the documentation they have, such as the deeds, the cadastral reference or the IBI. We will advise you on the documentation to be provided, as this will vary depending on the nature of the property and its conditions.

flecha-azul

02

Let's get to work

Our technical team will contact you and arrange a date with you to visit the property in order to carry out the checks required by the regulations, in terms of registration, occupancy, urban planning, cadastral, market, etc.
Once fully identified, during the visit, measurements, on-site checks, photographs and the collection of the necessary technical data required for the drafting of the report will be carried out.

flecha-azul

03

Checks

In accordance with the aforementioned regulatory framework, it is essential to carry out various verifications, such as urban planning, public protection, in the event that the property is under a protection regime, among others. This includes obtaining and analysing in detail all the necessary documentation, such as registry, cadastral, urban planning, rental contracts, among others, in accordance with the conditions and characteristics of the property to be appraised.

flecha-azul

04

Delivery

Once the appraisal report has been completed, it is generated together with the corresponding Certificate and sent to the applicant or to the financial entity, remaining at your disposal to resolve any queries you may have.

Frequently Asked Questions

The Mortgage Valuation, also known as the Official Valuation, can only be performed by a Valuation Company that has been authorised by the Bank of Spain by virtue of Spanish Royal Decree 775/1997 of 30 May that regulates the authorisation of valuation services and companies. The Official Valuation follows the criteria laid down in Order ECO/805/2003 of 27 March that sets forth the rules to value real-estate property and specific rights for certain financial purposes. The Mortgage Valuation is, as its name suggests, the only valuation that may be used to enter into a mortgage loan agreement.

The property appraisal does not always have to follow the Order ECO rules. Depending on the purpose of the appraisal, it will follow one set of rules or another. In general, the purpose of an appraisal is to establish a market value through different appraisal methods.

This is the applicable regulation for carrying out mortgage appraisals, which defines, among other things, the minimum checks that must be carried out, the valuation methodologies according to the different types of properties and the conditions and warnings that may affect the appraisal value and, therefore, as a guarantee for mortgage purposes.

It is published in the BOE with successive corrections, Order ECO/805/2003, of 27 March, on rules for the valuation of real estate and certain rights for certain financial purposes. The Mortgage Appraisal.

A Mortgage Valuation will remain valid for 6 months from the date of the Valuation Report. This is regulated in Art. 62, Section 4 of Spanish Order ECO/805/2003 of 27 March.

At Gloval we schedule the visit in less than 24 hours once the service has been contracted and we deliver your official valuation report in only 3-5 working days from the receipt of the documentation and the visit to the property.

The qualifications are limitations that are expressed in a valuation report and entail an important risk to the guarantee of the property, which means that it cannot be used as guarantee unless those circumstances disappear. The Company usually includes qualifications when it is unable to perform all the checks required by Order ECO (Art. 10 of Spanish Order ECO/805/2003 of 27 March). Some examples are:

  • The surveyor can’t inspect the inside of the entire property.
  • The client fails to provide the rental agreements for rented properties.
  • The client fails to provide the Building work permit for property under construction or the Project doesn’t have the seal of approval.
  • The property can’t be identified by the legal description.

The general warnings point out doubts on some of the data used to calculate the technical values of the property (Art. 11 of Spanish Order ECO/805/2003 of 27 March).

Specific warnings are included when the Company considers that there is a reasoned likelihood of a future drop in the property value (Art. 12 of Spanish Order ECO/805/2003 of 27 March).

The Mortgage Value does not necessarily have to coincide with the Market Value. It is possible to apply a mortgage adjustment to the Appraised Value calculated by the Comparison Method, which will be determined according to the circumstances that may arise and allow us to assume a high possibility that this value may suffer a loss of value in the future.

Furthermore, depending on the different valuation methods applied and the type of property, the Mortgage Value will coincide with the lowest of those calculated.

Pursuant to article 5 of Law 41/2007, of 7 December, which amends Law 2/1981, of 25 March, on the Regulation of the Mortgage Market, banks must accept any valuation of a property provided by the client, provided that it is certified by a company approved by the Bank of Spain and is not out of date, without prejudice to the fact that the credit institution may carry out any checks it deems appropriate, the cost of which may in no case be passed on to the client.

In this sense, GLOVAL is approved by the Bank of Spain and the majority of banks in Spain accept our valuations, so that any checks that may be required by the bank to which the valuation report is submitted may not be passed on to the client.

The price of the mortgage appraisal depends on the characteristics of the property for which you wish to request the appraisal report. Fill in the details of the property through our form and get an instant, no-obligation quote.

The duration of the visit will depend mainly on the size of the dwelling and the annexes that need to be inspected.

During the visit, it will be necessary to inspect the property in its entirety to measure it, to know its physical characteristics, qualities and installations, state of conservation and/or maintenance, as well as to appreciate the reforms carried out. Photographs will be taken of the exterior and interior, provided that the owner authorises it.

If the dwelling or property has annexes, such as terraces, patios, garages or storage rooms, these must also be visited., to carry out the same level of checks and data collection. It is also advisable to inform the appraiser of any communal areas or facilities, such as swimming pools, playgrounds, saunas, community rooms, etc…

During the visit, the technician may complete the inspection by asking questions or making general enquiries about the property, such as its age, dates of the last refurbishment, etc., information that is useful for completing the report.

Official appraisal of all types of properties

Do you need a mortgage guarantee, or do you want to know the official value of a property?
Select the type of property and we will take care of the rest.

icono-piso-vivienda

Housing

icono-local-comercial

Commercial Premises

icono-oficina

Offices

icono-nave-industrial

Industrial buildings

icono-terreno

Land

icono-edificio

Buildings

icono-farmacia

Pharmacies

icono-garajes-trasteros

Garages and storage rooms

icono-finca

Rural properties

icono-hoteles

Hotels