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 (4^th 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.