ABSTRACT
In this chapter, valuation practice for secured lending purposes is considered with particular regard to the International Valuation Standards references to scope and reporting structure, together with issues associated with investment, owner-occupied and development property for secured lending purposes. Lenders are in the business of selling money, ultimately at a higher margin than they can buy through either customer deposits or wholesale markets. When looking at the risks taken by banks and other financial institutions in the process of making a profit on their core business, the key risk taken by lenders is known as credit risk. Assets being valued must be clearly identified as they are then linked to a lenders security schedule for the facility being offered for collateral management purposes. It often occurs that lenders or intermediaries managing the valuation process will request even the smallest of changes if property identification is incorrect, due to the important nature of this issue.
