Long-Term Sustainable Value Network

The L-TSV Network

In 2014, a working group of around 20 valuation experts from France, Germany, The Netherlands, Poland, Spain, Sweden and the UK started developing a concept for a common principle-based methodology to determine L-TSV. This methodology became the basis for broader international discussions and has been presented at international conferences in Europe, South Korea and the United States as well as to several European associations and other European bodies.

The concept of L-TSV has been warmly welcomed everywhere and we have had many helpful discussions on the valuation methodology. The L-TSV Network is constantly growing. To join these discussions, please click on, how to “get involved”.


The main objectives of the L-TSV Network are:


  • Support for Long-Term Sustainable Value as a basis for valuation for lending purposes,
  • To discuss an international methodology for the assessment of L-TSV on a national and international level,
  • Support for training/ education in the field of L-TSV valuation.


The concept of a L-TSV for valuation for lending purposes can be implemented in most countries. The L-TSV Network encourages reaching a common understanding of how to determine the underlying principles and parameters of L-TSV and may therefore also promote the acceptance and application of L-TSV internationally. The complete harmonisation of L-TSV methodology at an international level is not the purpose of this initiative. 


The results of this project are contributing to further international discussions regarding valuation for lending purposes and could also form the basis for further discussions at national level concerning the potential of L-TSV being for introduction in various countries. 


Although Long-Term Sustainable Value is defined at a European Level, e.g. in Regulation (EU) 575/2013 (Capital Requirements Regulation) and European Valuation Standards (EVS 2016), using the term “Mortgage Lending Value”, until now it has not been used in many European countries. According to the European Banking Authority (EBA), methodological criteria for Mortgage Lending Value exist in the Czech Republic, Germany, Poland and Spain. 


The concept of L-TSV is used most widely in Germany. Compared to other countries, Germany was largely unaffected by the worldwide turbulence seen on real estate markets in recent years. There are many reasons for this: beside the differences in the structure and functioning of Germany’s residential and commercial property markets compared to those of other countries, its market is stabilised by the particular way in which property is financed. Fixed-rate lending, which is usual there, the widespread use of Pfandbriefs (covered mortgage bonds) for refinancing property and the associated use of L-TSV contributed substantially to avoiding speculation and high levels of price volatility. 

These characteristics of the German financial and property markets have also been analysed outside Germany, and experience on those markets has been taken as an opportunity to consider at the issue of L-TSV more closely – within professional valuation circles but also in the banking regulation and supervision context.