LTGDV

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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%.

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