It is compulsory, by law, for a bank to instruct an independent valuation when they are arranging a mortgage. All companies have to be approved by the Bank of Spain. Most banks have a panel of companies they use and in most cases the company is selected at random from the panel.
It is the client’s responsibility to pay for the valuation and sufficient funds to cover the fee must be transferred to an account with the bank arranging the mortgage. Once instructed, one of the company’s valuers will make an appointment to visit the property to carry out the valuation. The valuer (‘tasador’ in Spanish) will have to determine whether the property is suitable for mortgage purposes and then calculate a value.
Valuations in Spain are mainly focused on the geographic location of the property and the size of the plot and property itself in square meters. In their reports they will compare the property to others of the same size that have sold in the same area. The reports do not generally take into account the value of things such as build quality and materials used, quality of fixtures and fittings, views and other factors that would make the property more valuable from a buyer’s point of view. The reports do not usually cover any structural issues with the property.
While a property might be suitable for lending purposes, it could still be affected by problems that are not covered in the valuation report, such as a serious insect attack, rising damp, subsidence etc.
As an additional precaution, some clients request an independent structural survey. In contrast to a valuation, this involves a close inspection of the structural elements of a property. There are a number of UK-qualified chartered surveyors operating in Spain and we can recommend one to you to find out more about the service they offer. We only recommend surveyors who are registered and regulated by the Royal Institute of Chartered Surveyors (RICS).
Please contact us for a recommendation.