Using your Spanish property to access finance—whether a secured loan or bridging facility—starts with one critical milestone: the valuation (tasación). The appraisal determines how much you can borrow, which lender products you qualify for, and how fast you can complete. Here’s what matters, how lenders look at value, and how Kredit Spain can help you manage the entire valuation process from start to finish.

What a Spanish Property Valuation Is (and Why Lenders Rely on It)

A valuation is a formal report prepared by an approved appraisal firm that establishes the property’s value for lending purposes. For bank-style lending, the report is typically issued by a Banco de España–approved “sociedad de tasación.” For private and international lenders, RICS-compliant valuations may also be used.

Lenders care about valuation because it sets the Loan-to-Value (LTV)—the ratio between your loan amount and the appraised value. The lower the LTV, the easier it is to approve and the better the terms tend to be. Many secured and bridge lenders in Spain will work within indicative LTV bands of roughly 40%–60%, depending on the asset and borrower profile.

Market Value vs. Mortgage (Lending) Value

You’ll often hear two concepts:

• Market Value (valor de mercado): What an informed buyer would pay today based on comparable sales, condition, and location.
• Mortgage/Lending Value (valor de tasación para garantía hipotecaria): A prudently assessed value used by lenders, which can be more conservative than headline market prices.

For your borrowing power, the lending value in the report is what counts.

How the Valuation Process Works

1. Instruction
   The lender (or Kredit Spain on your behalf) commissions the appraisal with the appropriate firm (Bank of Spain–approved and/or RICS, depending on the lender’s criteria).
2. Document Pack
   Typical items include: escritura (title deed), recent nota simple from the Land Registry, cadastral reference, latest IBI receipt, floor plans, licenses for past works, certificate of occupancy where applicable, and community fee evidence for apartments.
3. Inspection
   The valuer visits the property, takes measurements and photos, checks condition, distribution, quality of finishes, orientation, energy performance and any visible issues.
4. Methodology & Report
   Apartments and townhouses usually rely on the comparables method; income-producing assets can include an income capitalization cross-check; single-family homes may include a cost approach component. The report concludes with a supported value and any relevant caveats (e.g., planning, legalization of extensions).
5. Validity
   Many lenders accept valuations for a limited window (commonly up to six months). If you complete outside that window or if the market shifts, a refresh may be needed.

Factors That Most Influence Your Appraisal

• Location and micro-location: Proximity to transport, coast, amenities, schools, and demand drivers.
• Size and layout: Net usable square meters, bedroom/bathroom count, functional distribution.
• Condition and modernization: Recent renovations, energy efficiency upgrades, windows, HVAC.
• Legal status and planning: Legalized extensions, no zoning breaches, correct use class, up-to-date licenses.
• Building quality and community: Lift, parking, storage, pool, community maintenance.
• Documentation clarity: Clean Land Registry records, no unresolved charges or discrepancies with Catastro.

Typical Timelines and Costs

Valuations are usually delivered within a few business days to two weeks depending on property type, location, and seasonality. Fees vary with complexity (apartment vs. finca/rural, mixed-use, commercial). Kredit Spain will estimate timeline and fee upfront so you can plan your completion date and cost stack accurately.

How the Valuation Shapes Your Loan

Because the valuation sets the LTV, it directly determines:

• Maximum loan amount you can draw.
• Eligibility for certain products (bridge vs. longer-term secured).
• Pricing and conditions (lower LTVs often get better rates and more flexible structures).

If the valuation returns lower than expected, you can adjust the strategy: reduce the loan size, add additional collateral, or consider a different lender profile. Kredit Spain will model these scenarios with you.

Rural Homes and Fincas: Special Considerations

Rustic properties can be excellent collateral, but valuations hinge on:

• Land classification (rústico vs. urbano), buildability, and permitted uses.
• Services and access (water, electricity, road).
• Legalization of outbuildings, pools, and extensions.
• Agricultural components and income where relevant.

Bringing the right documents and clarifications to the valuer is essential to avoid conservative haircuts.

How to Prepare and Improve Your Valuation Outcome

• Fix small defects before the inspection: damp patches, broken fittings, peeling paint.
• Gather complete paperwork: deed, nota simple, Catastro, IBI, community receipts, licenses for works.
• Legalize past works or be ready with proof of compliance where possible.
• Highlight value drivers: recent refurbishments, energy upgrades, parking spaces, storage, sea or landmark views.
• Be available for scheduling: fast access often speeds completion and loan drawdown.

How Kredit Spain Helps with Valuations

Kredit Spain coordinates valuations as part of a frictionless financing process so you don’t lose time or borrowing power to paperwork gaps or scheduling delays. Specifically, we can:

• Select and instruct the right appraisal firm for your lender (Banco de España–approved and/or RICS).
• Pre-screen your documents to align Catastro, Land Registry and reality on site.
• Provide a pre-valuation sense-check based on market comps and lender experience.
• Brief the valuer on upgrades and value-positive features that should be considered.
• Schedule and chase inspection and delivery to keep your closing timeline on track.
• Rapidly restructure the deal if the valuation comes in lower than expected (e.g., adjust LTV, add collateral, switch product).

Bottom Line

Your valuation is the foundation of any property-backed loan in Spain. Getting it right means faster approvals, cleaner underwriting, and better terms. With expert coordination, complete documentation, and the right appraisal standard, you can maximize your borrowing power and keep your transaction moving.

If you’re planning to raise finance against your Spanish property, Kredit Spain can manage the valuation end-to-end and align it with the best secured or bridge solution for your goals.