Total Financing Cost to Gross Development Value (GDV) is a crucial ratio in UK property development finance that measures the overall cost of borrowing and funding—covering interest, arrangement fees, monitoring charges, and other finance-related expenses—relative to the forecasted GDV of the completed development. This metric enables developers and lenders to assess how much of the project’s value is allocated to financing costs, impacting scheme viability and funding terms. A lower ratio reflects more efficient financing, while a higher ratio may signal tighter margins or increased financial risk during development.
This sits beneath Financing Fees & Upfront Costs, introducing a more specific variant of the measure without changing its core interpretation.
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