Glossary definition
LTGDV (Loan to Gross Development Value)
A key lending metric in development finance that expresses the total loan amount as a percentage of the gross development value of the completed scheme. Senior lenders typically advance up to 60-65% LTGDV, while combined senior and mezzanine facilities can stretch to 70-75% LTGDV.
Definition
A key lending metric in development finance that expresses the total loan amount as a percentage of the gross development value of the completed scheme. Senior lenders typically advance up to 60-65% LTGDV, while combined senior and mezzanine facilities can stretch to 70-75% LTGDV. LTGDV is the primary measure lenders use to ensure sufficient headroom between the debt and the expected end value.
See also
Closely related terms.
GDV (Gross Development Value)
The estimated total market value of a completed development project, calculated as the sum of all individual unit sale prices or the investment value of the completed scheme.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
LTV (Loan to Value)
A lending ratio that expresses the loan amount as a percentage of the current market value of the property being used as security.
Loan to Cost
A lending metric that expresses the total loan amount as a percentage of the total project costs including land, construction, professional fees, and finance costs.
Senior Debt
The primary layer of debt in a development finance structure, secured by a first legal charge on the property and sitting at the bottom of the capital stack with first priority on repayment.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readReadGuide
Mezzanine Finance vs Joint Venture Equity: How to Choose
Both mezzanine and JV equity reduce the cash you need to invest. But they work very differently and suit different situations. This guide helps you decide which is right for your project.
4 min read readReadGuide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 min read readRead
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