LTGDV Calculator
Loan to Gross Development Value — the ratio every UK development lender cares about. Enter your numbers below and we'll tell you exactly where you sit against the lender-appetite curve.
What LTGDV actually tells a lender
LTGDV answers a single underwriting question: "if we advance this facility and the scheme hits its projected value, how much cushion do we have when we're repaid?" At 65% LTGDV, a lender's capital is covered even with a 35% drop in final values. At 80%, the cushion is thin and the lender will charge accordingly.
UK LTGDV ranges, 2026
- 60–70% LTGDV — mainstream senior development debt. Rates typically 6.5–9% p.a.
- 70–75% LTGDV — stretched senior. Same structure but pricing moves up, often 8–11% p.a.
- 75–85% LTGDV combined — senior + mezzanine behind. Mezz priced 12–18% p.a. with exit fees or profit share.
- 85–90% LTGDV combined — aggressive stack. Usually requires strong sponsor and prime location.
The gotcha: it's the valuer's GDV, not yours
Your appraisal spreadsheet will usually read higher than the chartered surveyor's GDV. Expect deductions for: block sales on multi-unit schemes, stripped incentives, conservative growth assumptions, and comp selection. A 5% haircut on GDV is a 5% haircut on your loan size at a given LTGDV.
Related calculators
- Development Finance Calculator — goes further and sizes your full facility from GDV, build cost and land cost.
- Bridging Loan Cost Calculator — for short-term facilities on the way in or out of a dev loan.
FAQ
What is a good LTGDV?
For UK senior development debt, 60–70% LTGDV is the mainstream range; 65% is a common sweet spot. Above 70% lenders treat as stretched senior (higher cost). Above 80% combined usually means you're stacking mezzanine behind the senior.
What is the difference between LTV and LTGDV?
LTV (loan to value) sizes a loan against the asset's value today. LTGDV sizes it against the projected value after build — Gross Development Value. LTGDV is the relevant metric for development lending because the asset doesn't exist at drawdown.
How is LTGDV calculated?
LTGDV = (total facility) ÷ (Gross Development Value) × 100. If your facility is £7m and the valuer-signed GDV is £10m, LTGDV is 70%.
Can I get 85% LTGDV?
Not with senior debt alone. 85% LTGDV typically requires a senior lender at 65% plus a mezzanine lender taking a second charge for the gap between 65% and 85%. Pricing on the mezz portion is usually 12–18% p.a.