PECULIARITIES OF MORGAGE VALUATION

Valuation for mortgage purposes is a very important part of the work of a surveyor in general practice. The property is valued at the date of inspection, but bearing in the future ‐ will the value be maintained and easily realizable. This work considers the important aspects of the approach to such valuation and the factors witch the valuer should take into account. In UK open market valuers use value as the basics of mortgage valuation, but possible diminution of value cannot be ignored. A valuer must inform the lender about special circumstances and the risk and duty of care, of the prospective purchase, which may base his decision to purchase on the valuer's report.In Germany the lending value is always established on the basis of real value (cost approach and income approach) (.dual pillar principle.), with both values being calculated independently of each other (control function). Depending on the type of property, the Mortgage Lending Value (MLV) will as a rule be derived through cost‐ or the income approach. Mortgage Lending Value, provaided by the European Group of Valuers. Associations (TEGoVA) and the International Valuation Standards Committee (IVSC) are not strongly defined and it is necessary to rate criteria for the determination of the risk profile of property.