Loan-to-cost (LTC)
LTC compares the loan with the costs recorded in Build, Soft Costs and Site Purchase. In this calculation, the cost base excludes finance costs.
LTC = loan amount ÷ relevant development costs × 100.
Loan-to-value (LTV)
LTV compares the loan with the project's gross development value (GDV).
LTV = loan amount ÷ GDV × 100.
The two percentages use different bases, so review the selected loan basis when setting up your lender.