loan to GDV
Total debt measured against the finished value rather than the purchase price, which is how a development lender sizes risk.
Loan to value against the purchase price flatters a refurbishment purchase, because the purchase price is the low point. Loan to GDV asks the question the lender is actually asking: if this is sold at the end, does the sale repay the debt?
A deal at 70% loan to value on the purchase can be at 65% loan to GDV or at 90%, depending entirely on whether the works estimate is real.
Where this comes up
- Net advance: what a bridging facility really releases
A facility is not a cash sum. Where interest is retained it is deducted at drawdown, so the net advance is smaller than the headline. A capital stack…
- When a deal pack becomes a financial promotion
Direct property purchase sits outside the perimeter. Package it, share it, or publish a return, and the same pack becomes something only an authorised person…