Gross Loan to Net Development Value (NDV) measures the ratio between the total gross loan facility and the anticipated net sale value of the completed development after deducting sales costs, taxes, and incentives. In UK property development finance, this metric is particularly important for schemes with high disposal costs or marketing incentives. It is calculated as (Gross Loan ÷ NDV) × 100 and provides a realistic view of the loan’s proportion to actual recoverable value, rather than gross market value. Lenders use it to assess repayment prospects under conservative market assumptions.
This sits beneath Senior Debt Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Forward-Funding Leverage Ratio, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Gross Loan to Net Development Value (NDV) is most commonly encountered in connection with Refinance with Capital Release within the property development capital stack.
View glossary entry