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Lending Valve
Mortgage Lending Value. A Definition.
In § 3 (1), the Mortgage Lending Value Regulation defines the mortgage lending value as the value of a property, "which, based on experience, may throughout the life of the loan be generated in the event of sale, notwithstanding temporary fluctuations in value in the relevant property market, which could be due to cyclical movements, and excluding speculative elements"..
 The determination of the mortgage lending value is regulated by the provisions of the German Pfandbrief Act and the Regulation on the Determination of the Mortgage Lending Value. It is a very conservative valuation, aiming to determine the long-term lower limit of the property's value.
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