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.
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
Can I Get Development Finance With No Track Record?
An eligibility guide for developers without a completed scheme. We explain which lenders will consider you, exactly what they check, and the lower leverage and higher pricing to expect.
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 vs JV Equity: Cost Worked Example on One Scheme
A worked cost comparison of mezzanine finance and joint venture equity on the same development, showing what each costs when the scheme performs, when profit falls short and where the break-even sits.
5 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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