What Does LTGDV Mean?
LTGDV is an Acronym, which when expanded means ‘Loan To Gross Development Value’.
It is most commonly used when referring to Property Development Finance.
A more commonly used phrase is LTV or Loan To Value, which referees to the size of a loan vs the value of a property.
With LTGDV the same applies, its the percentage of a development loan versus the expected end value of a property development project.
Example of LTGDV
Here is a worked example of LTGDV on an example property development loan.
Lets imagine a property developer is building 10 properties which will be work £200,00 each when completed.
Total Loan Facility: £1,000,000
End Value of Properties (GDV): 10 x £200,000 = £2,000,000
LTGDV: £1,000,000 / £2,000,000 = 50%
Therefore in this example the LTGDV for the project is 50%.« Back to Glossary Index