Edition 2020 Ninth edition

(European Semester 2019 
Country Report)
.

---

252
IV. - EVIP 2: Valuation and Other Issues for Recurrent Property Taxation
European Valuation Standards 2020
9. Higher or additional charges
9.1. 
In some countries there is provision for higher charges to discourage particular 
uses, such as second homes or supermarkets.
9.2. 
Second Homes — The English Council Tax system started with discounts for second 
homes but has now developed options for local councils to apply higher than stand-
ard rates of tax.
9.3. 
An alternative approach has been taken by the Esch-sur-Alzette commune in Lux-
embourg in applying tax to empty dwellings, initially based on €100 per metre of 
façade and per floor, to encourage owners to sell or rent such properties, following 
measures taken by the Beckerich and Diekirch communes.

---

---

---

European Valuation Standards 2020
IV. - EVIP 3: Multiple Interests in Residential Property
255
EVIP 3 Multiple Interests in
Residential Property
1. Introduction
2. Valuation
3. Multiple ownerships
4. Tenancies and other rights
5. Residential caravan parks
6. Inalianable and unassignable property

---

256
IV. - EVIP 3: Multiple Interests in Residential Property
European Valuation Standards 2020
1. Introduction
1.1. 
There are many situations in which more than one person has a legal interest in a 
residential property. These can produce complex questions for valuation.
1.2. 
Multiple interests can arise through structures of ownership involving more than 
one person, such as
•
Co-ownership of the dwelling by several owners, often family members;
•
Collective forms of ownership of a property including several dwellings (as with 
a block of apartments) which may according to the situations and the national 
law be condominiums and other forms).
1.3. 
There may be lesser interests in a property than ownership that should be consid-
ered. These might include:
•
Leases which may be:
•
Very long, long, short, very short or running on a periodic monthly, quar-
terly or annual basis;
•
For occupation or for building;
•
Transferable or not assignable;
•
Allowing sub-letting or being barred from sub-letting;
•
Simply at rent or with a premium;
•
Generally with other rights and obligations between the landlord and 
the tenant;
•
Structures of such leases and sub-leases which might variously be held by in-
dividuals or jointly or by companies;
•
Right of use such as usufruct.
There may usually be a framework of national law as well as the agreement for the 
tenancy or right which will establish the legal character of the tenancy or right with 
its benefits and obligations.
1.4. 
It may be necessary to consider how far the dwelling has been altered by works (as 
for energy efficiency) that have altered it and so questions including:
•
How is a landlord's investment in a property treated?
•
How is a tenant's expenditure on the property to be treated?

---

European Valuation Standards 2020
IV. - EVIP 3: Multiple Interests in Residential Property
257
•
Have items become part of the property or remained the legally removable per-
sonal property of the occupier?
•
Are these improvements or dilapidations?
Much of this may be governed by specific national law.
2. Valuation
2.1. 
Subject to the client's instruction, the valuation will be to determine the Market 
Value