LTGDV (Loan to Gross Development Value)
The ratio of total development finance to the projected completed value of a development project.
LTGDV (Loan to Gross Development Value) is the ratio of the total development facility (land loan plus build cost facility) to the estimated value of the completed development. It is a key metric in development finance used to assess how much equity the developer has at risk and how comfortable the lender's position is.
Most development finance lenders will lend up to 65-75% LTGDV for residential schemes, meaning the total loan cannot exceed 65-75% of the completed development value. A developer proposing a scheme with a GDV of £2 million could borrow up to £1.3-1.5 million total (land plus build costs) at 65-75% LTGDV.
LTGDV differs from LTC (Loan to Cost), which is the ratio of the facility to the total project cost. Both metrics are used by development finance lenders. Generally, LTGDV governs the maximum facility and LTC (typically up to 90% for strong developers) governs the split of funding between lender and developer equity.
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