BANK • HOME LOAN • LAP • PROPERTY VALUATION

DDA Leasehold

Every bank home loan or Loan Against Property (LAP) requires a mortgage valuation from a Government Approved Property Valuer on the bank's panel.

A2Z Valuers is empanelled with leading nationalised and private banks; the certificate is prepared in the bank's prescribed format and supports the bank's credit assessment without requiring additional certification challenge.

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PROPERTY VALUATION

DDA Leasehold & Mortgage

Government Approved Valuation

MORTGAGE VALUATION CERTIFICATE

What the Bank Valuation Establishes

A mortgage valuation brings together the property's market evidence, title characteristics and lending security considerations into the valuation certificate.

Current Open-Market FMV

Establishes the property's Fair Market Value (FMV) based on the applicable valuation evidence and property characteristics.

Mortgage Value & LTV

Provides the relevant Mortgage Value (MV) used in the bank's Loan-to-Value (LTV) assessment.

Title & Property Status

Records relevant title characteristics including freehold or leasehold status, RERA registration where applicable and encumbrance considerations.

Security Value

Establishes the property's relevant security value for the bank's lending and credit assessment.

Need a mortgage valuation for your DDA property? Discuss the property, title and bank valuation requirements with A2Z Valuers.

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SARFAESI ENFORCEMENT

DSV Certificate for SARFAESI Enforcement

When a bank enforces a SARFAESI security, the Distressed Sale Value (DSV) is an important valuation component in determining the auction reserve price.

MARKET VALUE MV

Current Market Value established using the applicable valuation approach, including the Comparative Market Approach or Income Approach, as appropriate.

DISTRESSED SALE VALUE DSV / FSV

The applicable forced-sale value reflecting the circumstances of enforcement and the relevant distressed-sale discount.

SARFAESI VALUATION

The appropriate DSV/FSV should be determined by the valuation assignment, property characteristics and applicable professional and institutional requirements; it should not be treated as an automatic percentage for every property.

DDA PROPERTY VALUATION

DDA Leasehold — What It Means for Your Loan and Sale

A large number of Delhi properties are held under DDA leasehold arrangements. Before applying for finance or selling such a property, the title structure and remaining lease term should be properly examined.

Bank Mortgageability Requirements

Banks assess leasehold properties based on their lending policies, the remaining lease period, title documents and other security requirements. The remaining lease term can therefore become an important consideration when determining loan eligibility and security value.

Example A DDA property originally granted on a long-term lease should be assessed for its unexpired lease period against the proposed loan tenure rather than relying only on the original lease duration.

Leasehold Discount in Market Value

A Government Approved Property Valuer may need to consider the difference between comparable freehold FMV and leasehold value. The applicable valuation analysis can reflect factors such as the unexpired lease term, transfer restrictions and other lease conditions.

DDA Leasehold to Freehold Conversion

Eligible DDA leasehold properties may be converted to freehold subject to the applicable DDA rules, eligibility and prescribed charges. The valuation certificate should clearly identify whether the subject property is pre-conversion or post-conversion and apply the appropriate valuation basis.

NOC & Transfer Considerations

Depending on the property and transaction, DDA NOC and transfer requirements may need to be considered. Applicable transfer charges, restrictions and documentation can affect the property's marketability and should be reviewed as part of the valuation assignment.

PROPERTY TITLE

Freehold vs Leasehold — Why the Distinction Matters

Freehold

The valuation analysis generally considers the property with its applicable ownership rights, subject to title, encumbrance and other property-specific factors.

DDA Leasehold

The analysis may need to consider the unexpired lease term, transfer conditions, applicable restrictions, conversion status and other factors affecting marketability and value.

HAVE A DDA LEASEHOLD PROPERTY?

Know Your Property's Valuation Before You Borrow or Sell

Whether you need a bank mortgage valuation, SARFAESI valuation, DDA leasehold assessment or independent property valuation, start with the property's title, documents and transaction purpose.

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