Development Finance LTGDV Calculator
Development finance is structured around the Gross Development Value of the completed scheme. Model your senior debt, LTC, equity requirement and rolled interest before you approach lenders.
Model your scheme's leverage
Senior debt is sized at the lower of the LTGDV and LTC caps - whichever binds first. Add a mezzanine target to see how total leverage and your equity requirement change.
Illustrative only. Rolled interest is a mid-point estimate (peak facility × average draw × rate × term); your monitoring surveyor's drawdown schedule determines the actual curve. We confirm live terms the same working day.
GDV - Gross Development Value
The projected open market value of the completed scheme, determined by a RICS Red Book valuation. This is the denominator in the LTGDV calculation.
LTGDV - Loan-to-GDV
The total facility as a percentage of GDV. Most lenders cap senior debt at 60-70%; with mezzanine, total leverage can reach 75-80%.
LTC - Loan-to-Cost
The facility as a percentage of total project costs (land plus build). Most lenders cap at 85-90% LTC alongside their LTGDV limit. Both apply; the lower wins.
Mezzanine
Subordinate debt behind the senior charge that lifts total leverage. Sourced separately, priced higher than senior, and typically takes total LTGDV to 70-80%.
Get indicative terms in 24 hours
Send us your appraisal - GDV, build cost, planning status and exit - and we will benchmark it against the senior debt panel with a view on where mezzanine or stretched senior makes sense.
LTGDV scenarios at a glance
Indicative senior debt and equity across scheme sizes. Actual leverage depends on lender, asset class, developer track record and exit.
| Scheme | GDV | Senior debt | Prof. fees | Total cost | Equity |
|---|---|---|---|---|---|
| 6-unit res. new build | £1,800,000 | £1,116,000 | £180,000 | £1,296,000 | ~£400k |
| 14-unit scheme | £4,900,000 | £3,038,000 | £490,000 | £3,528,000 | ~£1.1m |
| 30-unit scheme | £10,500,000 | £6,510,000 | £1,050,000 | £7,560,000 | ~£2.1m |
| C2R conversion (38 apts) | £7,600,000 | £4,712,000 | £760,000 | £5,472,000 | ~£1.2m |
| High-value (London) | £25,000,000 | £15,500,000 | £2,500,000 | £18,000,000 | ~£4.8m |
Frequently asked questions
What is the maximum LTGDV available on development finance?
Senior debt alone typically reaches 60-65% LTGDV for residential new build, and 55-62% for commercial conversion. With mezzanine finance layered on top, total leverage can reach 70-80% LTGDV. Above 80% LTGDV requires either a joint venture structure or a very experienced developer with a track record on comparable schemes.
What is the difference between LTGDV and LTC?
LTGDV (Loan-to-GDV) measures the loan against the completed value of the scheme. LTC (Loan-to-Cost) measures the loan against the total cost of delivering the scheme. Both limits apply simultaneously - the lower of the two is the binding constraint. Most schemes hit the LTGDV cap before the LTC cap, but schemes with high land values relative to GDV sometimes hit LTC first.
Do I need a monitoring surveyor?
For any development finance facility, yes. The monitoring surveyor is appointed by the lender, not by you, and their fees are typically added to the facility. They certify each drawdown tranche against build progress. Without their sign-off, the lender will not release further tranches. For light refurbishment (no structural works, under £150k works), some lenders waive the monitoring requirement.
Can I raise development finance as a first-time developer?
Yes, but your leverage will be lower - typically 55-60% LTGDV rather than 62-65% - and lenders will require a more experienced professional team (architect, project manager, main contractor with track record). Some specialist lenders specifically target first-time developers with smaller schemes. Our brokers can identify the right lender for your experience level.
What happens if the GDV changes during the build?
If the market softens during construction, the lender may commission a revised GDV valuation. A lower GDV reduces the maximum loan under the LTGDV test, which can cause a shortfall. This is why contingency budgets, conservative GDV assumptions at application, and pre-sales (where achievable) are important risk mitigants.