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You are viewing the version of the document as on 2023-11-28.

This chapter includes rules that refer to provisions of the UK CRR in the form in which it stood at 31 December 2021. That version of the UK CRR can be found on using this link.

IPRU-INV 5.7 Qualifying property and qualifying undertakings

Qualifying property and qualifying amount defined


1Qualifying property is any freehold or leasehold (or the equivalent tenure in Scotland or other territories) land and buildings purchased or secured by way of a mortgage (or other form of secured long-term arrangement) where the security for the liability is the property (and does not include any other allowable assets). The qualifying amount is the lowest of:

  1. (a)

    85 per cent of the current market value of the property (if known);

  2. (b)

    85 per cent of the net book value of the property;

  3. (c)

    the amount of the liability outstanding under mortgage or other secured long term arrangement, excluding any part of the liability repayable within one year.


IPRU-INV 5.7.1R can be illustrated as follows:

Current market value


Net book value



£70,000, including £5,000 payable within one year

Qualifying amount is the lowest of:

(a) 85% x £200,000 =


(b) 85% x £100,000 =


(c) £70,000 - £5,000 =


i.e. £65,000

Qualifying undertakings


A qualifying undertaking is an arrangement between a firm and an approved bank which:

  1. (a)

    is in the form prescribed by the FCA for the purposes of this rule; and

  2. (b)

    complies with the appropriate limitations set out in IPRU-INV 5.8.2R(7).