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Last Financial Law Question:

When calculating the maximum loan, what is the property market value used?

Financial Law

Francisco Garcia Ramirez

11th of April 2002

Q. Can a mortgage be obtained on the valuation of a property, rather than the deed amount (i.e. when the deed amount is the off-the-plan price and it has been re-sold in the meantime)? Thank you in advance for your reply.

Dublin, Ireland

    A. You are able to obtain a mortgage loan based on the valuation of the property, as opposed to obtaining it based on the deed amount. Most banks are now lending on the basis of the real market value of the property, and not the deed value of the property, which is a figure which can be easily manipulated and does not always reflect the true value of the property.

    When purchasing a property from a new developement, it often happens that between the time the works start until completion and subsequent handover, there has been an appreciation of the property value, and therefore the purchaser is able to raise the initially offfered mortgage loan to adjust it to the real market value.

    This affect buyers who purchase the (incorrectly called) rights to that property, in exchange of a premium, and require higher financing to complete the purchase.

    If you need help regarding a mortgage loan, please visit, they should be able to help.

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