Can I provide my own valuation to the bank?

Legal framework: What does the law require from banks?

Law 5/2019, regulating real estate credit contracts, protects the applicant's freedom to choose the valuation firm. This legislation clearly establishes that financial institutions must accept any report issued by an officially approved valuation entity.

This means that the lender cannot reject the document arbitrarily nor make the granting of the loan conditional upon carrying out a valuation with its usual partner companies. If the bank wishes to perform an additional check on the property at its own expense, the legislation states that it must bear the full cost of this process without passing any expense onto the client.

Requirements for the bank to accept your own valuation

To ensure that the bank processes the transaction using the valuation you have provided, the report must meet a series of essential criteria set out by financial regulation:

1. Company approved by the Banco de España

The valuation must be executed and signed by a valuation company registered with and supervised by the Banco de España. Reports prepared by estate agents or surveyors not registered in this official record lack legal validity to support a mortgage guarantee.

2. Unexpired validity period

According to Order ECO/805/2003, property valuations for mortgage purposes have a strict validity period of six months from the date the certificate is signed. If the report expires before the public deed is signed before a notary, an update of the document will need to be arranged.

3. Original and legible report

The client must supply the full copy of the document, including all annexes, floor plans, photographs, and verification of the land registry and planning status of the property.

Considerations regarding protected housing (VPO)

When the purchase transaction involves an Officially Protected Housing unit (VPO) in the Comunidad de Madrid, the technical valuation must take into account the corresponding legal limitations. Even if the valuation determines a market value, banks will calculate financing limits by applying their percentages to the lower value between the valuation provided and the maximum legal sale price set by the Madrid regional administration.

Advantages of providing your own valuation

Commissioning the valuation report independently before formally submitting the mortgage application offers significant benefits during negotiation:

• Time savings in the process: It speeds up initial procedures by having the technical document available from the outset.
• Ability to compare offers: A single valuation certificate is valid for requesting proposals from different financial institutions at the same time.
• Ownership of the document: As the client instructs and pays the valuation firm directly, the report belongs to them and remains valid if they decide to switch banks.

What to do if the bank rejects the valuation

If a bank refuses to accept the official valuation you have submitted, there are steps you can take to protect your rights:

Request a justified refusal in writing

Ask the branch to provide a signed statement setting out the specific technical reasons for the rejection. Since they are required by law to legally justify any refusal, lenders often rectify their position if the report meets all regulatory requirements.

Professional guidance in managing the process

Submitting documentation with expert support helps prevent administrative delays with lenders' risk departments. The real estate credit intermediaries manage the formal delivery of the valuation, defend the validity of the report submitted, and ensure compliance with conditions set by current regulations.

Frequently asked questions about client-provided valuations

Can the bank charge me a fee to review the valuation I provide?

No. Legislation prohibits lenders from charging fees or expenses to the client for reviewing, verifying, or auditing a valuation provided by the loan applicant.

Does the valuation need to be in my name?

The report must be issued in the name of the buyer or the applicant for mortgage financing. If the valuation was commissioned by the seller or a third party, it is possible to request a change of ownership or an addendum from the approved valuation company.

Can I use the same valuation if I decide to switch banks?

Yes, provided it remains within the six-month validity period and was prepared by an approved company. You can submit a certified copy of the document to any bank where you wish to evaluate mortgage terms.