LMT Appraisals & valuations

The mortgage appraisal determines the appraisal value of assets for the application of a mortgage loan. Subject to ECO Order 805/2003. It is a mandatory document when requesting a mortgage and therefore it will be required by the financial institution for its processing.

The contradictory expert appraisal serves as a review of the base value of a tax in order to modify its amount. It is used in those taxes that have it contemplated in their regulations, although the jurisprudence allows its application in all taxes that are based on a value, even in the absence of regulations that contemplate it.

They are technical reports to present in legal proceedings whose purpose is always within the real estate field. The most frequent purpose of these reports is to determine the market value of a property for its contribution to a judicial process.

We also carry out expert reports requested at the request of a party: quantify lost profits, emerging damage and/or property loss.

The ruling of the Constitutional Court of May 11, 2017 requires the annulment or reform of the municipal capital gains tax since there is no justification that the tax must be paid if the value of the land has not increased.

The sentence concludes that when it is accredited and proves that there has been no increase in value, the municipal capital gain may not be required, this accreditation is made through the contradictory expert appraisal of capital gain that serves as proof that the value of the land has not increased, this The appraisal will be based on the value of the land and not on that of the property, so mortgage appraisals are not valid.

Tax valuations such as cadastral valuation are those aimed at establishing the value of a property for tax purposes, its main use being to serve as a basis for establishing the tax on urban real estate (ibi) and other taxes such as the increase in value. of the land (plusvalía) and the property transfer tax.

For the purposes of the ibi, the technical standards for cadastral valuation are used. Said rule establishes that the value of the property is obtained by adding the value of the land and the value of the construction, to these values, either individually or jointly, corrective coefficients are applied based on the characteristics of the property.

The corrective coefficients of the value of the construction are; use, quality, historical-artistic character, antiquity, state of conservation. They are applied on the current value (construction cost plus contract benefit, fees and taxes).

Any inheritance distribution process requires knowing the real value of the assets that are going to be transferred. In this process, advice from accredited professionals is necessary to guarantee a valuation adjusted to the real market situation and a fair distribution among the heirs.

The appraisal by separation arises when the matrimonial economic regime is liquidated (appraisal liquidation of property). The parties liquidate the community of property (if it existed) and become governed by separation of property as if they were not married.

The purpose of the separation appraisal is therefore to know the real market value of a property. This market value is the most likely price at which real estate can be sold.

The appraisal as a guarantee, deferral or installment for the tax agency and social security is intended to serve as collateral for tax debts contracted with the administration in such a way that the value of a property can serve as collateral. This valuation is required by the administration based on an amount of debt.

Among the most common debts are VAT (Value Added Tax) and IRPF (personal income tax) and debts with social security.

Valuation reports to estimate the fair value. Knowing precisely the starting value of the assets, of the property and rights affected, of the compensation that can be claimed and what are the chances of success in the event of an appeal are vital issues for the time to optimize the economic effort involved in a process of these characteristics.

The appraisal for related operations (corporate tax law) aims to prevent tax fraud by increasing information on the value of a property that allows better monitoring of transfers and the effective use made of the assets. The appraisal report provided will justify the normal market value

The Appraisal of heritage and portfolios or heritage valuation is the valuation of the set of assets of a real estate or movable nature that make up a heritage and are owned by individuals, companies, organizations, etc.

It arises from the need to know the market value of a large number of farms in an agile and economical way for the client in an updated way.

Knowing the market value of an asset and its circumstances at a given time is a differentiating factor for making the most appropriate decision in operations involving real estate.