Forced Sale Value (FSV) is credit slang term for what price mortgage lenders expect a property to reach at auction if sold after repossession. This is usually around 70% of the market value (the price it would fetch if sold normally).

It can also be referred to as Forced Liquidation and it is usually only taken as the last resort for a lender to collect on the money they are owed.

Why is the forced sale value lower than the market value?

There are a number of variables at play when it comes to determining the market value of a property, but being exposed to a wide selection of consumers over a long period with less urgency to sell, helps keeps values up. In contrast, FSV properties aren’t advertised alongside standard house sales and are intended to be sold quickly.