Bank lending valuations and mortgage lending value
Published October 2025
Effective from 1 January 2026
Reissued 12 December 2025
Please note: On 12 December 2025 this professional standard was reissued to update section 3.2.2 (Spain) following the recent enactment of the Spanish Ministerial Order ECM/599/2025, effective from 12 August 2025. This Order mandates changes to valuation requirements, particularly concerning mortgage lending value and sustainability criteria.
This professional standard, effective from 1 January 2026, is essential for RICS members providing valuation services for bank lending purposes in or subject to EU jurisdictions. It also serves as a valuable resource for borrowers, lenders and regulatory authorities to better understand the evolving valuation landscape.
The second edition has been revised to reflect significant regulatory changes, particularly the new Basel 3.1 guidance and the EU's Capital Requirements Regulation (CRR III). These updates introduce ‘prudently conservative valuation criteria’, which will have a major impact on property valuations for secured lending.
The standard comprehensively covers:
Market valuation: It clarifies the role of market value as the primary basis for bank lending valuations and its relationship to the new Basel 3.1 criteria.
Mortgage lending value (MLV): It addresses the evolving role of MLV, noting its continued use for covered bonds in certain jurisdictions, and provides a detailed overview of established MLV practices in countries like Germany and Spain.
The RICS valuer's role: It outlines the responsibilities of RICS members in MLV valuations, emphasising the need to explicitly state the valuation basis and methodology and to differentiate MLV from market value.
This professional standard, alongside the related new global RICS practice information Bank lending valuations: Basel 3.1 prudently conservative valuation criteria adjustments ensures RICS members are equipped to navigate the complexities of European bank lending valuations.