Vol. 83 (2023)
Special Issue - Visions of the future in real estate appraisal

The Mortgage Lending Value (MLV): proposal for a new calculation procedure

Antonio Benvenuti
University of the Republic of San Marino
Francesca Salvo
Department of Environmental Engineering (DIAm), University of Calabria
Daniela Tavano
Department of Environmental Engineering (DIAm), University of Calabria

Published 2024-04-22


  • market value,
  • mortgage lending value,
  • market income,
  • income approach,
  • international valuation standards


The mortgage lending value (MLV) is a type of value different from the market value (MV). The MLV appraisal is normally required in loans secured by real estate (collateral) context. In Italy, this appraisal is often made in percentage terms or with subjective criteria that do not consider the reference principles also defined by the valuation standards. This paper, starting from the analysis of the German procedure to appraise the MLV, which is the first country to introduce the concept of a security value in the context of property valuations, aims to propose a more precise procedure than the German one by adopting calculation methodologies typical of the income approach which are based on the principles derived from the definition of mortgage lending value and from market trends. The case is made that the proposed methodology and calculation procedure provide a more objective method to appraise the MLV compared to the current ones, in accordance with both national and international valuation standards, and that it represents a useful tool in the professional field.


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