Beleihungswertgutachten
(§ 16 PfandBG)

The mortgage lending value of a property, as defined in section 16 of the German Pfandbrief Act (PfandBG), provides banks with a reliable estimate of the credit risk in real estate financing. This may not be higher than the value “which is determined in the course of a prudent assessment of the future marketability of a property and by taking into account the long-term, sustainable characteristics of the property, normal regional market conditions, and current and possible other uses”. The absolute upper limit for the mortgage lending value is the market value.

In contrast to the market value, which is intended to reflect the typical purchase price taking into account the current market environment while excluding personal or unusual situations, the mortgage lending value serves as the collateral value from the perspective of the respective financing credit institution. It is intended to ensure during the term of the agreement that any loan that may be defaulted on can be completely redeemed from the proceeds of realization (primarily foreclosure, but also free sale) at any time, which is why potential and expected fluctuations in value in the future must be taken into account in terms of value. For this reason, the market value on the appraisal date must not fall below the mortgage lending value during the entire period of the loan.

With our team of experienced, certified mortgage lending value appraisers, we can prepare value appraisals in accordance with § 16 PfandBG that are normally a combined market and mortgage lending value appraisal. Upon request, a mortgage lending value appraisal can also be carried out independently if an adequate, up-to-date market value appraisal is available.