source:
  type: guide
  id: va-m26-7-ch12-t24
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 24 — Leased
    Mechanical Systems and Equipment
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 24 — Leased
    Mechanical Systems and Equipment.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch12-t24-full
  canonical_id: va-m26-7-ch12-t24-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 24 — Leased Mechanical
    Systems and Equipment
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 24 — Leased
      Mechanical Systems and Equipment
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 824171a914866a59
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:71efd8bb39bb5596ad194f1b13e6f979cfa1afbf5566e897e26836fc1ab0429e
    paragraph_quote: '24. Leased Mechanical Systems and Equipment Change Date March
      28, 2019 • This chapter has been revised in its entirety. a. No Value to Leased
      Equipment The appraiser must not include the value of any leased mechanical
      systems or any other leased equipment in the estimated market value as leased
      items are not suitable security for a loan. This includes, but is not limited
      to, fuel or propane storage tanks, solar or wind systems (including power purchase
      agreements), and other alternative energy equipment. b. Leased Equipment to
      be Noted in the Appraisal The appraiser must identify leased items in the appraisal
      report. Some leases may encumber the title making the property less than fee
      simple. The appraiser must consider any detrimental effect on the value of the
      property if the leased items are removed by the lessor. VA Pamphlet 26-7, Revised
      Chapter 12: Minimum Property Requirements 12-32'
  judgment: false
