A mortgage or collateral appraisal is a prerequisite for obtaining a mortgage loan. The bank you approach for a loan will ask for it.
In Spain, a mortgage or collateral appraisal can only be carried out by an appraisal company approved by the Bank of Spain. A list of approved appraisal companies can be found on the Bank of Spain’s website.
It is an informal name for an appraisal that complies with the requirements and specifications of the Ministerial Order that regulates it, the Ministerial Order ECO 805/2003.
There are many types of appraisals and valuations, as well as valuation methods. The most common method, which is always supplemented by others, is the so-called comparative method. This involves identifying offers or transactions of properties that are similar in terms of location, surface area, age and condition, features, legal situation, market, etc., and analysing and filtering the data obtained in order to eliminate the least suitable and homogenise the most suitable. In this way, an average value of the property under study is obtained.
There are many types of appraisals and valuations. A full valuation of an flat, which includes a visit, a survey of the floor plan and an analysis of land registry documents, etc., can take around a week, provided that the property can be visited and all the necessary documents are available.
The appraisal expires and loses its legal validity six months after the date of issue.
The fees for an appraisal depend on a number of parameters, such as the property’s location, size, purpose or value. We recommend that you contact us to provide you with a quote.
For a conventional appraisal of a property, you will need a land registry report (nota simple) that is less than three months old, cadastral documentation and a plan of the property. These documents can be provided by the applicant or obtained by the appraisal company. Depending on the circumstances, additional documents may be required. For example, if the property is rented, you will also need to provide the contract and the most recent payment receipt, or if it is subsidised housing, the relevant documentation.
