Should I pay the bank´s property valuation?

Legal tip 134. Should I pay the bank´s property valuation?
07 September 2009 @ 14:12

You are passing your mortgage to a new Bank or you are finally getting financiation from a lending institution, you have got a property valuation of the house dated 3 months ago and made by an official surveyor. Is it not of use? Can the Bank make you have a new one and... pay for it?

The answer is no: according to provision 5 of Law 41/2007, if you have your own property valuation, made by an official surveyor, not older than 6 months, the Bank cannot make you have ( neither pay) a new one.

Stop the banks! How I enjoy it!

Bolonia scenario by Indrasensi at Flickr.com

Hi Maria I appreciate that may be the law but the harsh reality of it is that many banks will say "OK if you want to use your original Tasacion then take a mortgage with that bank".

As you know valuers in Spain have been less than corruptible historically and there are lenders that will not accept a valuation from Tinsa for instance -

The problem for many clients is that they do not have the time to argue or they may not meet another lenders criteria - different lenders take different attitudes to what can be considered income for non residents - some will incorporate retained profits as income - others wont. Some lenders insist that for the self employed they submit an SA302 (Inland Revenue Confirmation of Tax Paid). The problem is that not all self employed people in the UK receive them (those that are sole traders in a Ltd Co. structure).

With all these variables to consider if a client then states he has a Tasacion arranged through another bank, if that valuation company (official or not) is not on the new lenders approved list they simply will not accept it - if one starts quoting the law to the bank they do in fact respond by withdrawing the mortgage offer - which is within their rights at any time until legal completion.

Well, in that case at least a claim before the Clients service and  subsequent claim before Bank of Spain clients service is mandatory. That will start to change the culture.