OUR OTHER MISSIONS

Property valuation (drive-by valuations)

The property valuation or appraisal is more specifically intended to assess a residential property. This mission is carried out by our network of valuers. In this context, the valuer determines the value of the property (with or without viewing its interior) in the form of a property valuation with a “high” and “low” price range, leaving the freedom of choice to our purchaser. This valuation report is not enforceable unlike the appraisal report. It makes it possible to quickly obtain a trend on the value of an immovable property.

The property valuation shows:

  • The benchmarks for properties sold
  • The price per m²
  • The elements of added value and depreciated value
  • The liquidity of the property (easy, normal, uncertain or difficult)
  • The valuation of the property (high value and low value)
  • The viewing of the property with photographs
Present property value

This desk-bound task consists of updating the present value at regular frequency and depending on the needs of the purchaser, the market value of an immovable property (mainly for residential housing use). The present value must be carried out from a previous appraisal report or from a property valuation.

The present value shows:

  • The benchmarks for properties sold
  • The price per m² chosen by the valuer
  • The elements of added value and depreciated value
  • The liquidity of the property (easy, normal, uncertain or difficult)
  • The valuation of the property (updated market value)
Determination of the mortgage value – In accordance with the Mortgage Credit Directive 2014/17/EU

 

  • Definition and context

“The mortgage value corresponds to a valuation which must be assessed conservatively in order to sell the property over time. It relies on the notion of stabilised income over time”. Extract from the Property Valuation Appraisal Charter (4th edition / October 2012).

“The objective of the mortgage value of is to provide a long-term sustainable value, which assesses the adequacy of a property as collateral for a mortgage loan irrespective of any future fluctuations of the market and according to a more stable principle. It provides a figure, generally lower than the market value and, consequently, able to absorb the long-term fluctuations of the market, whilst reflecting with precision the long-term underlying trend on the market”. Extract from the report of the European Mortgage Federation on mortgage value, quoted by TEGoVA (European Valuation Standards 2012) and by the RICS (Royal Institution of Chartered Surveyors).

This directive aims to create a EU-wide mortgage market that applies to property loans secured or unsecured by a mortgage. Member states will have to transpose their provisions into their national law by March 2016.

These measures which fall within the framework of better information and consumer protection should allow, over time, to rebuild and strengthen the relationship of trust between the borrower and the lender, by notably relying on the notion of “responsible lending”.

Credit institutions will have to ensure that the valuer responsible for the valuation possesses the necessary qualifications, that it is, as a minimum, affiliated with one of the signatory professional organisations of the Property Valuation Appraisal Charter and has therefore agreed to respect the standards decreed by said charter.

 

  • The mission of COFARIS EVALUATION

The most representative professional organisations of French property valuers, including the CEIF-FNAIM to which COFARIS valuers are accredited, have drafted and signed a Charter which defines the main rules and common standards making it possible, at the time of an appraisal, to guarantee that the mortgage amount taken out during a credit agreement correspond, today, to the true value of the property, and thus protects the borrower, tomorrow, if it was forced to part with the property prematurely.

Determination of the LTV ratio

The LTV (Loan to Value) ratio aims to measure the bank risk within the context of financing.

  • Definition and context

Each investor may have an attitude or specific needs towards financing. However, we have observed a real need of our customers in order to optimise risk and notably in determining the LTV ratio conditioning financing.

Definition of the LTV (Loan To Value) rate The LTV rate is a risk ratio corresponding to the ratio between the market value of the property (or market value) and the debt (or the principal balance of the mortgage).

  • The mission of COFARIS EVALUATION

A true specialist in this area, our valuer will express in its findings a ratio between the mortgage value and the market value of the property, making it possible to assess the lender’s risk in its search for the LTV (Loan To Value) ratio.

 

 

Contact-us

Business Services :

+33(0)2 47 34 87 81

commercial@cofaris-evaluation.com

Real estate appraisal services :

+33(0)2 47 34 87 82

expertise@cofaris-evaluation.com

Ethics, methodology and confidentiality : Our partners and certifications