Formula
LTGDV = Gross Facility ÷ GDV
Gross Facility divided by GDV equals LTGDV percentage.
Gross Facility ÷ GDV = LTGDV %
Lender Thresholds
| LTGDV | Assessment | Typical Lenders |
|---|---|---|
| ≤ 55% | Passes all mainstream criteria | High street, banks, building societies |
| 55–60% | Passes most senior lenders | Specialist banks, challenger lenders |
| 60–65% | At or near maximum for many | Specialist development lenders |
| 65–70% | Restricted lender panel | Higher-margin specialist lenders |
| > 70% | Mezzanine typically required | Mez lenders + senior combination |
Indicative only. Individual lenders apply their own criteria and may vary thresholds based on asset type, location, and sponsor experience.
Frequently Asked Questions
What inputs does the LTGDV calculator need?
Gross facility and GDV. Gross facility is the total lender exposure including advances, arrangement fee, exit fee, and funded interest. To model gross facility from first principles, use the Gross Facility Calculator first.
Why does LTGDV use gross facility and not net loan?
LTGDV measures the lender's full exposure against the exit value. Using net loan understates exposure by excluding fees and rolled interest — both of which the borrower must repay.
What LTGDV result should I aim for?
Most senior development lenders cap at 60–65% LTGDV. Results above 65% will limit your lender panel to specialist and higher-margin lenders. Results above 70% typically require mezzanine or additional security.